What is a Ticker? A ticker is a symbol, a unique combination of letters and numbers that represent a particular stock or security listed on an exchange. The symbol is used to refer to a specific stock, particularly during trading. Trades are executed based on a company’s ticker symbol, which is recorded in the exchange’s trading system….
What are Private Equity Funds? Private equity funds are pools of capital to be invested in companies that represent an opportunity for a high rate of return. They come with a fixed investment horizon, typically ranging from four to seven years, at which point the PE firm hopes to profitably exit the investment. Exit strategies include IPOs…
What are Bollinger Bands? Bollinger Bands are a technical analysis tool developed by John Bollinger in the 1980s for trading stocks. The bands comprise a volatility indicator that measures the relative high or low of a security’s price in relation to previous trades. Volatility is measured using standard deviation, which changes with increases or decreases…
What is a Small-Cap Stock? A small-cap stock is a stock of a publicly traded company whose market capitalization ranges from $300 million to approximately $2 billion. The word “cap” in this term refers to a company’s market capitalization. The classification between small, mid, and large-cap companies is subjective and can vary among brokerages and market…
What is the London International Financial Futures and Options Exchange (LIFFE)? The London International Financial Futures and Options Exchange (LIFFE) is a futures exchange located in London. Sir Brian Williamson established LIFFE on September 30, 1982 to take advantage of the UK’s removal of currency controls in 1979. Originally located in the historic Royal Exchange…
What are Fibonacci Numbers? Fibonacci Numbers are the numbers found in an integer sequence referred to as the Fibonacci sequence. The sequence is a series of numbers characterized by the fact that every number is the sum of the two numbers preceding it. The initial two numbers in the sequence are either 1 and 1, or…
What is the Nikkei Index? The Nikkei Index, also commonly referred to as the Nikkei 225, is the most recognized Japanese stock market index. It comprises Japan’s top 225 companies that are listed on the Tokyo Stock Exchange. The Nikkei Index is considered an important measure of the Japanese stock market and the performance of the…
What is Intrinsic Value? The intrinsic value of a business (or any investment security) is the present value of all expected future cash flows, discounted at the appropriate discount rate. Unlike relative forms of valuation that look at comparable companies, intrinsic valuation looks only at the inherent value of a business on its own. Another…
What is Net Present Value (NPV)? Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business,…
