This article is from the Glossary of Stock Investing Terms.
Using borrowed money to purchase securities ("buying on margin").
A brokerage account in which the broker lends the customer cash to purchase securities. The loan in the account is collateralized by the securities, and if the value of the stock drops sufficiently the account holder will be required to deposit more cash, or sell a portion of the stock.
The demand that a customer deposit cash in a margin account.
The total dollar value of all outstanding shares, calculated by multiplying the number of shares times the current market price.
On the NASDAQ system, a broker-dealer willing to accept the risk of holding a particular number of shares of a particular security in order to facilitate trading in that security. Over 500 firms act as NASDAQ market makers, displaying buy and sell quotations for a guaranteed number of shares.
The difference between the price at which a Market Maker is willing to buy a security and the price at which the firm is willing to sell it (the difference between the bid and ask for a given security). Since each Market Maker can either buy or sell a stock at any given time, the spread is the how a Market Maker makes a profit on each trade.
An order to buy or sell a stock immediately at the best available current price.
An attempt to sell a stock or portfolio when a market is at a high and buying at a low. Generally an exercise in futility.
The price at which investors buy or sell a security at any time.
The combination of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
A technical analysis term. The average prices of a security for a particular period are charted in an attempt to determine recent trends
An open-ended investment company that manages a portfolio of securities and offers shares to investors. Shares are issued and redeemed as per demand, and the fund's Net Asset Value per share (NAV) is determined each day.