Allocation Notice definition explanation

What is Allocation Notice?
An official notification from an options clearing firm to the writer of an option that the current option holder has exercised and, therefore, the writer must produce the underlying security. This may require the option’s writer to purchase or sell securities on the open market to fulfill the contractual obligation.

Allocation notice can also refer to how a broker or advisor would inform a client who has shown interest in an IPO whether his or her requested allocation of IPO shares is available in full, or if only a fraction of the requested total is available for purchase. Read more for examples and further explanation including related video clips and also comments
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Algorithm definition explanation

What is Algorithm?
A set of rules for accomplishing a task in a certain number of steps. One common example is a recipe, which is an algorithm for preparing a meal. Algorithms are essential for computers to process information. As such, they have become central to our daily lives, whether ordering a book online, making an airline reservation or using a search engine. Read more for examples and further explanation including related video clips and also comments
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After-Hours Market Close definition explanation

What is After-Hours Market Close?
The last transaction and final price of a security that is traded in the after-hours market. The after-hours market is generally more volatile than the regular market, but it can give investors an idea of what to expect at the start of trading the next day.

Also referred to as “”after-hours close””. Read more for examples and further explanation including related video clips and also comments
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Advance/Decline Index definition explanation

What is Advance/Decline Index?
A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered one of the best indicators of market movements as a whole. Stock indexes such as the Dow Jones Industrial Average only tell us the strength of 30 stocks, whereas the advance/decline index can provide much more insight into the movements of the market. Read more for examples and further explanation including related video clips and also comments
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Adding To A Loser definition explanation

What is Adding To A Loser?
The action of a trader/investor increasing a position in an asset when its price is heading in the direction that’s opposite to what the investor/trader desires. This is generally not a wise investment decision because unless the asset begins to move in the desired direction, the investor’s losses will increase. Read more for examples and further explanation including related video clips and also comments
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Active Management definition explanation

What is Active Management?
The use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. The opposite of active management is called passive management, better known as “”indexing””. Read more for examples and further explanation including related video clips and also comments
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Absolute Breadth Index – ABI definition explanation

What is Absolute Breadth Index – ABI?
A market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks. Read more for examples and further explanation including related video clips and also comments
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