What is a Stock Market Crash? A stock market crash refers to a drastic, often unforeseen, drop in the prices of stocks in the stock market. The sudden drop in stock prices may be influenced by economic conditions, catastrophic event(s), or speculative elements that sweep across the market. Most flash crashes are usually short bursts…
What is the Stock Exchange Daily Official List (SEDOL)? The stock exchange daily official list (SEDOL) is a seven-digit code used to identify all securities listed and trading on the United Kingdom securities market. Companies and issuers use SEDOL to identify assets, such as investment trusts, insurance-based securities, and other common stock forms. SEDOL is…
What is a Stock Exchange-Traded Fund (ETF)? A stock exchange-traded fund (ETF) is a listed investment product that captures a basket of assets that often tracks a popular stock index’s performance. As with a financial asset, an ETF is a fund that is traded at a market-determined price and allows an investor to trade shares…
What is a Call Premium? A call premium refers to the amount above par value an investor receives when the debt issuer redeems the security earlier than its maturity date. If a security is redeemed before it reaches maturity, the owner of the security loses the incremental profits that would’ve been generated. The call premium…
What is the Calmar Ratio? The Calmar ratio is a formula that measures the performance of an investment fund – such as a hedge fund – compared to its risk. It is commonly used by investors as a risk-adjusted measure in the selection of investments. The Calmar ratio indicates the relationship between risk and return….
What is the Call Market? The call market refers to a market where trading does not take place continuously, but only at specified times during the trading day. Prices are dictated by the exchange rather than by bids and offers. In the call market, orders are aggregated and collected at designated intervals instead of trading…
What are Forfeited Shares? Forfeited shares often result from when investors in equity shares fail to comply with pre-specified purchase agreements or restrictions. The end result of share forfeiture is that the shareholder no longer needs to comply with the pre-specified purchase agreement or restrictions but loses the opportunity to realize gains on their equity…
