Blue chip (stock market) (Ofer Abarbanel online library)

blue chip is stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.[4][5] The most popular index that follows United States blue chips is the Dow Jones Industrial Average, a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. All companies in the Dow Jones Industrial Average are blue-chips, but the Dow Jones Industrial Average is an index that does not include all companies that are blue chips. Nevertheless, it has been a widely followed indicator of the stock market since October 1, 1928.[6] Continue reading “Blue chip (stock market) (Ofer Abarbanel online library)”

Agency security (Ofer Abarbanel online library)

Agency securities are specific securities that are issued by either Ginnie Mae, Fannie Mae, Freddie Mac or the Federal Home Loan Banks.  These securities are backed by mortgage loans, and due to their creation from these particular corporations that are sponsored by the U.S. government, they enjoy credit protection based on either an explicit guarantee from the U.S. Government in the case of Ginnie Mae securities, or an implicit guarantee from the U.S. Government in the case of Fannie Mae and Freddie Mac. Agency securities also used as collateral for the supply of money released by the Federal Reserve. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.[1] Continue reading “Agency security (Ofer Abarbanel online library)”

Alpha generation platform (Ofer Abarbanel online library)

An alpha generation platform is a technology used in algorithmic trading to develop quantitative financial models, or trading strategies, that generate consistent alpha, or absolute returns. The process of alpha generation refers to generating excess returns.[1] Alpha generation platforms are tools used by hedge funds, banks, CTAs and other financial institutions to help develop and test quantitative trading strategies. Alpha generation platforms support quants in the creation of efficient and productive quantitative trading strategies.[2] Continue reading “Alpha generation platform (Ofer Abarbanel online library)”

Alternative display facility (Ofer Abarbanel online library)

Alternative display facility (ADF) is an equity trading facility created in the United States by the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization (SRO). The ADF is an alternative to the exchange for publishing quotations and for comparing and reporting trades. This differs from a trading facility with execution capabilities (stock exchange) in that the exchange would simply send back to the owner of the displayed order a notice of execution. FINRA has operated an ADF since July 29, 2002.[1][2] Continue reading “Alternative display facility (Ofer Abarbanel online library)”

Bagholder (Ofer Abarbanel online library)

In U.S. financial slang, a bagholder is a shareholder left holding shares of worthless stocks.[1] It can also refer to the holder of any financial instruments that become worthless, such as the junior bonds of a defaulted company or the coins of a failed cryptocurrency. The word is derived by combining shareholder with the expression “left holding the bag.” Continue reading “Bagholder (Ofer Abarbanel online library)”

Behavioral analysis of markets (Ofer Abarbanel online library)

Behavioral Analysis of Markets is a new area of study, proposed by James Gregory Savoldi, closely related to behavioral finance, behavioral economics and socionomics. Unlike traditional models of behavioral analysis which typically integrate insights from psychology with neo-classical economic theory, Behavioral Analysts of markets focus entirely on the psychology of actual market participants and how their present moods control market price movement. Continue reading “Behavioral analysis of markets (Ofer Abarbanel online library)”

Beneficial ownership (Ofer Abarbanel online library)

Beneficial ownership is a term in domestic and international commercial law that refers to anyone who enjoys the benefits of ownership of a security or property, without being on the record as being the owner. Webster’s defines a beneficial owner as “one who enjoys the benefit of a property of which another is the legal owner.”[1] The legal owner (i.e. the owner on the record) may be described as the “registered owner”, and if they are not the beneficial owner they may be described as a “nominee”. Continue reading “Beneficial ownership (Ofer Abarbanel online library)”

Big boy letter (Ofer Abarbanel online library)

big boy letter is a pre-sale agreement in connection with a private sale of securities (such as in a PIPE transaction) not to sue over non-disclosure of material inside information that is not disclosed, entered into between two sophisticated parties. Big boy provisions may also be contained within securities purchase agreements, rather than being the subject of a separate letter agreement. Generally, a seller’s request that a buyer agree to a big boy letter is a signal to the sophisticated buyer that there is likely to be material non-public information that exists concerning a security, which could give rise to a lawsuit brought by the buyer if it was not disclosed, in the absence of the letter. Continue reading “Big boy letter (Ofer Abarbanel online library)”