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Options (Finance)
puts and calls in securities trading. A call is a contract that gives the holder the right to purchase a given stock at a specific price within a designated period of time. It is the opposite of a put, which is a contract that allows the holder to sell a given stock at a specific price within a... Read more |
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Prospectus
PROSPECTUS A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. A prospectus is a document or a publication by, or on behalf of, a corporation containing information... Read more |
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Random Walk
Random Walk ORIGINS AND RATIONALES IMPLICATIONS FOR INVESTORS BIBLIOGRAPHY A random walk is one in which future steps or directions cannot be predicted on the basis of past actions. When the term is applied to the stock market, it means that short-run changes in stock prices cannot be... Read more |
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Day trading
DAY TRADING As one of the new economy's most popular pastimes, day trading generated intense emotions from supporters and detractors alike, and the practice was the source of much controversy. Sometimes referred to with derision as "recreational trading," day trading is a form of stock market... Read more |
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speculation
speculation practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings. The term is sometimes applied to investment in a venture involving abnormal risks along with... Read more |
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commodity market
commodity market organized traders' exchange in which standardized, graded products are bought and sold. Worldwide, there are 48 major commodity exchanges that trade over 96 commodities, ranging from wheat and cotton to silver and oil. Most trading is done in futures contracts, that is, agreements... Read more |
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PriceEarnings (PE) Ratio
Price/Earnings (P/E) Ratio The price/earnings ratio (P/E ratio) is one of a number of measures used to assess the value of a company. The "price" component of the ratio is the stock price of the company. The "earnings" portion is the net income (income after tax) reported by the company per share.... Read more |
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money-market fund
money-market fund type of mutual fund that invests in high-yielding, short-term money-market instruments, such as U.S. government securities, commercial paper , and certificates of deposit. Returns of money-market funds usually parallel the movement of short-term interest rates. Some funds buy... Read more |
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Ponzi Scheme
PONZI SCHEME A fraudulent investment plan in which the investments of later investors are used to pay earlier investors, giving the appearance that the investments of the initial participants dramatically increase in value in a short amount of time. A Ponzi scheme is a type of investment fraud... Read more |
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hedge fund
hedge fund in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" positions (borrowing... Read more |
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