What is the Quoted Price? The quoted price is the most recent – or last – price at which a financial asset, such as stock, bond, or commodity, has traded. The quoted prices for all investments change throughout each trading day in response to the volume of buy and sell orders entered by investors as…
What is a Qualifying Disposition? Qualifying disposition is a tax term used in the U.S. that refers to a sale or other disposition of shares that receive favorable tax treatment for the individual disposal of the stock. Qualifying dispositions are important for stockholders because there may be a wide disparity between the stockholder’s regular income…
What is a Qualified Foreign Institutional Investor (QFII)? Qualified Foreign Institutional Investor (QFII) is a program launched by the Chinese government in 2002 that enables certain foreign institutional investors to gain direct access to trade “A-shares” of Chinese stocks, denominated in China’s renminbi/yuan (RMB), on Chinese stock exchanges such as the Shanghai Exchange. Before the…
What are Commitments and Contingencies? In accounting and finance, Commitments and Contingencies can be defined as follows: A commitment is a promise made by a company to external stakeholders and/or parties resulting from legal or contractual requirements. On the other hand, a contingency is an obligation of a company, which is dependent on the occurrence…
What is the Jakarta Stock Exchange (JSX)? The Jakarta Stock Exchange (JKSE) was a stock exchange in Jakarta, Indonesia. In Indonesia, the exchange was called “Bursa Efek Jakarta” or BEJ. The exchange later merged with Surabaya Stock Exchange, ultimately creating the Indonesia Stock Exchange or IDX. History of the Jakarta Stock Exchange The Jakarta Stock…
Who is Jan Tinbergen? Jan Tinbergen (1903-1994) was a renowned Dutch economist who gained popularity for the development of econometric models through the application of a combination of mathematics and statistics to economic theory. He was the first “Nobel Memorial Prize in Economic Sciences” winner in 1969, sharing the award with Ragnar Frisch. They developed…
What is a Hard-to-Borrow List? A hard-to-borrow list refers to a list – i.e., an inventory record – of securities that brokerage firms are reluctant or cannot allow their clients to borrow for the purpose of short selling. Its purpose is to make transparent their list of the stocks that are “hard to borrow,” i.e.,…
What is the Equity Premium Puzzle (EPP)? The Equity Premium Puzzle (EPP) refers to the fact that stocks have outperformed Treasury bonds by an extraordinarily high margin over the last century – a margin so high that it is very difficult to explain regardless of how thoroughly the situation is analyzed. EPP is one of…
What is a Falling Knife? A falling knife is a term used when a security, such as a stock, quickly drops in price. During such instances, investors are recommended to wait for the security to reach its lowest point before buying back in. Despite the events of a falling knife, many equities are capable of…
What is the Fear and Greed Index? The Fear and Greed Index, developed by CNNMoney, is used to gauge whether investors are too bullish or bearish on the stock market. The index ranges from 0 (extreme fear) to 100 (extreme greed). Understanding the Fear and Greed Index In theory, the Fear and Greed Index acts…
