What is a Discount Broker? A discount broker is simply a brokerage firm that offers discount trading rates to investors. The brokers work at a discounted commission rate to accommodate their clients. Discount brokers – either individuals or firms – complete buy and sell orders for clients. They do not, however, provide specific trading advice...
What is the Dead Cat Bounce? The dead cat bounce describes a financial phenomenon whereby a stock in a steady decline suddenly, and without a logical cause, gains value temporarily before continuing its downward trend. The term originates from the saying that even a dead cat will bounce if dropped from high enough. True Price...
What is Depth of Market (DOM)? Depth of Market (DOM) is a window that displays the real-time market activity at different price levels in a security or currency market. DOM is also known as the order book. It records the pending buy and sell orders of particular securities, and thus, helps to determine which trade...
What is Discretionary Investment Management? Discretionary investment management is an investment management style that refers to when an investment team makes buying and selling decisions on behalf of a client at their discretion. The decisions are usually made by a portfolio manager who has the ultimate end-decision for which individual securities to hold in a...
How Do Banks Make Money? Diversified banks make money in a variety of different ways; however, at the core, banks are considered lenders. Banks generally make money by borrowing money from depositors and compensating them with a certain interest rate. The banks will lend the money out to borrowers, charging the borrowers a higher interest...