Tag: Buying

Treasury Note definition explanation

What is Treasury Note?
A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years. Treasury notes can be bought either directly from the U.S. government or through a bank.

When buying Treasury notes from the government, you can either put in a competitive or noncompetitive bid. With a competitive bid, you specify the yield you want; however, this does not mean that your bid will be approved. With a noncompetitive bid, you accept whatever yield is determined at auction. Read more for examples and further explanation including related video clips and also comments
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Scale In definition explanation

What is Scale In?
The process of purchasing shares as the price decreases. To scale in (or scaling in) means to set a target price and then invest in increments as the stock falls below that price. This buying continues until the price stops falling or the intended trade size is reached. Scaling in will, ideally, lower the average purchase price. If the stock does not come back to the target price, however, the investor ends up purchasing a losing stock. Read more for examples and further explanation including related video clips and also comments
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Non-Assessable Stock definition explanation

What is Non-Assessable Stock?
A class of stock in which the issuing company is not allowed to impose levies on its shareholders for additional funds for further investment. Non-assessable stocks typically have the words “”fully paid and non-assessable”” printed on the stock certificate.

These are the opposite of assessable stocks. Read more for examples and further explanation including related video clips and also comments
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Iron Condor definition explanation

What is Iron Condor?
An advanced options strategy that involves buying and holding four different options with different strike prices. The iron condor is constructed by holding a long and short position in two different strangle strategies. A strangle is created by buying or selling a call option and a put option with different strike prices, but the same expiration date. The potential for profit or loss is limited in this strategy because an offsetting strangle is positioned around the two options that make up the strangle at the middle strike prices. Read more for examples and further explanation including related video clips and also comments
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Initial Offering Date definition explanation

What is Initial Offering Date?
1. The date at which a security is first made available for public purchase. The initial offering date is set during the underwriting process. For stocks, this marks the date of the initial public offering and the beginning of a quiet period, when insiders and underwriters cannot issue earnings forecasts or research reports on the company. This term also refers to the initial offering of shares in other assets, such as mutual funds and unit investment trusts (UITs). Read more for examples and further explanation including related video clips and also comments
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Open-End Fund definition explanation

What is Open-End Fund?
A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. Read more for examples and further explanation including related video clips and also comments
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