Monthly Archives: March 2018

 

Capitulation

Capitulation occur when investors rapidly sell equities, getting out of the market as quickly as possible and giving up any previous gains in stock prices. The term comes from the military word for surrender, and is closely associated with panic selling. Capitulation is characterized by high trading volume and sharp declines in price, usually a […]
Posted in Finance Glossary

What does it mean to “Buy the Dips”?

Buying the dips is investor slang for buying a stock that has dipped in price, in hopes that the decline will soon reverse. An investor that buys dips believes that the stock is temporarily undervalued and that they are getting valuable shares for s discounted price. For instance, after the announcement of Brexit in June […]
Posted in Finance Glossary

Circuit Breakers

Circuit breakers, also known as collars, are measures approved by the SEC designed to temporarily halt trading during a massive sell-off period in order to discourage investor panic. the halt gives investors time to cool off and evaluate their options On the NYSE, circuit breakers were first put into place after the Black Monday crash […]
Posted in Finance Glossary

Amortization

Amortization has two primary meanings. In personal finance, amortization refers to a repayment arrangement in which regular payments are made over an extended period of time, such as in a car or home loan . Often in a fixed repayment schedule, earlier payments consist primarily of interest, and the proportion of the payment dedicated to […]
Posted in Finance Glossary

Disinflation

Disinflation refers to a decrease in the rate of price inflation. It is usually used by the Federal Reserve to describe marginal slowdowns in inflation over a short-term period. Unlike deflation, in which price actually lower, disinflation means a slowing rate of inflation: prices are still increasing, but at a slower rate than previous. If […]
Posted in Uncategorized
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