Non-Covered Security
What is a Non-Covered Security? The term non-covered security refers to a legal definition of securities, the details of which may not necessarily be disclosed to the Internal Revenue Service (IRS). The competent authority that makes such designations for tax reporting purposes in the U.S. is the Securities and Exchange Commission (SEC). The designation entails...
Market Value
What is Market Value? Market value is usually used to describe how much an asset or company is worth in a financial market. It is mutually determined by market participants and is interchangeably used for market capitalization when dealing with assets and companies. Relationship Between Market Value and Market Price On the other hand, market...
Market Timing
What is Market Timing? Market timing refers to an investing strategy through which a market participant makes buying or selling decisions by predicting the price movements of a financial asset in the future. Investors following the strategy aim to outperform the market by taking a long position (buying) at market bottoms and a short position...
Market Sentiment
What is Market Sentiment? The term market sentiment, also known as investor sentiment, refers to the general outlook or attitude of investors toward a particular security or the overall financial market. The optimism or pessimism of the market players is most evident in the overall price trends. How Does Market Sentiment Affect Prices? Sentiment drives...
Market Price
What is Market Price? The term market price refers to the amount of money for which an asset can be sold in a market. The market price of a given good is a point of convergence of the demand and supply for that good. It is an important aspect of calculating consumer surpluses, economic surpluses,...
