What is High Close? High close is a trading strategy used right before the market closes for stock price manipulation. Traders attempt to make small trades at high prices during the last few minutes before the market is closed to leave an impression that the stock’s performed well. The high close strategy’s been criticized for…
What is a Hell or High Water Contract? A hell or high water contract is a legal contract with a clause stating that the buyer needs to continue making payments regardless of any complications. The term for the clause comes from a colloquial expression meaning to complete a task regardless of any difficulty (“come hell…
What is the Hierarchy of Effects? The hierarchy of effects is a theory that discusses the impact of advertising on customers’ decision-making on purchasing certain products and brands. The theory covers a series of stages that advertisers should follow, from gaining customers’ awareness to the final purchase behavior. Understanding the Hierarchy of Effects Theory The…
What is “HODL”? “HODL” is a term that is often used in the Bitcoin investment community. It is a misspelling of “hold,” with an interesting story behind it. The term also spread to the communities of other cryptocurrencies. It is not only a popular term but is also considered an investment strategy. The Story of…
What is the KBW Bank Index? The KBW Bank Index serves as a benchmark that is used to track the performance of leading banking institutions and publicly-traded assets in the United States. The KBW Index comprises 24 banking equities/stocks that represent regional banks, thrift institutions, and/or national money centers in the United States. Hence, the…
What is a High-Speed Data Feed? A high-speed data feed refers to a fast real-time market data-providing service. It facilitates high-frequency trading and algorithmic trading. Taking advantage of fast-growing information technology and strong computing power, a high-speed data feed can execute trades and update data several times faster than the traditional data feed does. It…
What is a Highly Compensated Employee? Highly compensated employees refer to the employees who own more than 5% of the interest in a business or receive compensation above a certain amount determined by the Internal Revenue Service (IRS). Highly compensated employees are differentiated from non-highly compensated employees for 401(k) retirement plan purposes. Understanding Highly Compensated…
What is Financial Performance? Financial performance is a complete evaluation of a company’s overall standing in categories such as assets, liabilities, equity, expenses, revenue, and overall profitability. It is measured through various business-related formulas that allow users to calculate exact details regarding a company’s potential effectiveness. For internal users, financial performance is examined to determine…
What is the Exponentially Weighted Moving Average (EWMA)? The Exponentially Weighted Moving Average (EWMA) is a quantitative or statistical measure used to model or describe a time series. The EWMA is widely used in finance, the main applications being technical analysis and volatility modeling. The moving average is designed as such that older observations are…
