- Industry: News service
- Number of terms: 2877
- Number of blossaries: 0
- Company Profile:
United Kingdom-based news service and former financial market data provider that provides news reports from around the world to news media
Holding a belief that prices will fall. A bearish sentiment in the market will therefore push prices lower. The opposite of bullish. See also Bullish.
Industry:Financial services
A market in which prices have been falling for a prolonged period. Opposite of a bull market. See also Bull Market.
Industry:Financial services
An attempt to push down the price of a security, usually by short selling. See also Short.
Industry:Financial services
A false signal that a rising trend will end and that the market will resume previous falls. Short sellers are trapped by rising prices and have to cover their positions by buying stock at higher prices.
Industry:Financial services
A survey of the outlook for the US economy published eight times a year by the Federal Reserve Board. Also known as the Tan Book.
Industry:Financial services
Additional features of a security designed to attract investors and/or reduce issuer costs.
Industry:Financial services
An instrument or indicator that is generally seen to be an indicator of the overall market, economy or sector’s performance. From the lead sheep of a flock, which is belled.
Industry:Financial services
A term used to describe when an exceptional item is recorded separately in a company’s profit and loss account. See also Extraordinary Item.
Industry:Financial services
A standard used for comparison. A benchmark security is usually the most recently issued security in good size. It sets the standard for the rest of the market. A benchmark issue is highly liquid.
Industry:Financial services
Beta records how volatile and risky investing in an individual stock is compared with the risk of the equity market as a whole. Beta measures how much the individual stock’s excess return (the amount it earns in dividends and capital gains compared with a short-term money market rate) varies in comparison with movement in the excess return of the market as a whole (usually represented by the market’s benchmark index). Beta compares excess return with short-term government paper because the latter investment is regarded as risk free. If the market’s excess return rises by one percent and the stock’s excess return rises during the same period by the same one percent then the stock’s beta is one. The higher the beta the riskier the stock, reflected in its greater required return. A stock with a beta of more than one tends to be riskier than the market. A stock with a beta of less than one is less risky. High beta stocks tend to be in cyclical sectors such as property and consumer durables. Low beta stocks, also known as defensive stocks, tend to be in non-cyclical sectors such as food retailing and public utilities. Betas for individual stocks can vary according to whether the overall market direction is upwards or downwards. A stock may be riskier in a falling market than a rising market.
Industry:Financial services
