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Active Trading

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Trading Strategy & Fundamentals

  1. Underwriter Syndicate

    An underwriter syndicate is a temporary group of investment banks and broker-dealers who come together to sell offerings ...

  2. Risk Arbitrage

    Risk arbitrage is a strategy to profit from the narrowing of a gap of the trading price of a target's stock and the acquirer's ...

  3. What is the best measure of a given stock's volatility?

    Understand what metrics are most commonly used to assess a security's volatility compared to its own price history and that ...

  4. Diversification: My Favorite Term

    We asked world renowned investor and best-selling author Ray Dalio to share his favorite financial term. See why he chose ...

  5. Public Offering Price (POP)

    The public offering price (POP) is the price at which new issues of stock are offered to the public by an underwriter.

  6. Financial Operating Plan - FOP

    When an organization wants to outline its capital expectations, it may create a financial operating plan.
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Trading Instruments

  1. Discounts For Lack Of Marketability - DLOM

    For noncontrolling, nonmarketable ownership interest, a discount for lack of marketability is often applied to security and ...

  2. Volatility Arbitrage

    Volatility arbitrage is a trading strategy that attempts to profit from the difference between the forecasted future price-volatility ...

  3. Sell to Close

    Sell to close is an options trading order that is used to exit a trade in which the trader already owns the options contract ...

  4. Multi-Leg Options Order

    A multi-leg options order is a type of order used to simultaneously buy and sell options with more than one strike price, ...

  5. What is an over-the-counter derivative?

    Learn more about over-the-counter derivatives and how they work with an example of a derivative trade-off exchange.

  6. Model Risk

    Model risk occurs when a financial model used to measure a firm's market risks or value transactions fails or performs inadequately.
Hot Definitions

  1. Gross Domestic Product - GDP

    GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...

  2. Debt/Equity Ratio

    The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders’ equity.

  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...

  5. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability ...

  6. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
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