What is Net Volume? Net volume is used to indicate the difference between a security’s uptick volume and downtick volume. Uptick volume is the volume of a company’s shares that are traded when the stock price is rising. Similarly, downtick volume is the volume of shares that are traded when the stock price is falling....
What is a Bank Run? A traditional bank run occurs when too many customers withdraw all their money simultaneously from their deposit accounts with a banking institution for fear that the institution may be, or will become, insolvent. Although jurisdictions have deposit insurance schemes to cover depositors, the inability to use funds or a potential...
Chapter 11 Bankruptcy Chapter 11 bankruptcy is a legal process that involves the reorganization of a debtor’s debts and assets. It is available to individuals, sole proprietorships, partnerships, and corporations. It is most commonly used by corporations. The reorganization allows the business to continue operations but under supervision, subject to the debtor’s fulfillment of some...
What is the Arms Index? The Arms Index, also known as the Short-Term Trading Index (TRIN), refers to a short-term technical analysis trading indicator that compares the number of advancing and declining stocks issues with the advancing and declining volume. Arms Index Formula Developed by Richard W. Arms Jr. in 1967, the Arms Index is...
What is a Zombie Company? A “zombie company” is a term used to describe an uncompetitive company that needs a bailout to operate successfully or an indebted company that is only able to repay interest on its debt (interest-coverage ratio of 1 or less). Such companies generate only enough cash flow to pay the interest...