Tag: stocks

Distribution Reinvestment definition explanation

What is Distribution Reinvestment?
A process whereby the distribution from a limited partnership, real estate investment trust (REIT) or other pooled investment is automatically reinvested into common units or shares in a fund, often at a discount to the current market price. Investors can set up distribution reinvestment plans with the partnership itself, or with a broker through which the units are held.

Also known as a DRIP, but not to be confused with dividend reinvestment plans (also called DRIPs), which are found in many large-cap stocks and mutual funds. Most distributions are done quarterly, but some may occur on a monthly basis. Read more for examples and further explanation including related video clips and also comments
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Basic Materials Sector definition explanation

What is Basic Materials Sector?
A category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. The basic materials sector includes the mining and refining of metals, chemical producers and forestry products. Read more for examples and further explanation including related video clips and also comments
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Derivative definition explanation

What is Derivative?
A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. Read more for examples and further explanation including related video clips and also comments
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S&P 500/Citigroup Growth Index definition explanation

What is S&P 500/Citigroup Growth Index?
A market-capitalization-weighted index developed by Standard and Poor’s consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics. The S&P 500/Citigroup Growth Index is a numerical ranking system based on three growth factors and four value factors to determine the constituents and their weightings. Read more for examples and further explanation including related video clips and also comments
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Growth At A Reasonable Price – GARP definition explanation

What is Growth At A Reasonable Price – GARP?
An equity investment strategy that seeks to combine tenets of both growth investing and value investing to find individual stocks. GARP investors look for companies that are showing consistent earnings growth above broad market levels (a tenet of growth investing ) while excluding companies that have very high valuations (value investing). The overarching goal is to avoid the extremes of either growth or value investing; this typically leads GARP investors to growth-oriented stocks with relatively low price/earnings (P/E) multiples in normal market conditions. Read more for examples and further explanation including related video clips and also comments
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Appreciation definition explanation

What is Appreciation?
An increase in the value of an asset over time. The increase can occur for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease over time. Read more for examples and further explanation including related video clips and also comments
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Currency Trading Software definition explanation

What is Currency Trading Software?
Trading software to help the currency trader with forex trading analysis and the execution of trades. Currency trading software provides charts and order-taking methods, which are usually free of charge when a trading account is opened with a forex broker. As with trading software used for trading other securities like stocks or futures, most platforms differ greatly in functionality. Read more for examples and further explanation including related video clips and also comments
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Russell Midcap Index definition explanation

What is Russell Midcap Index?
A market capitalization weighted index representing the smallest 800 companies in the Russell 1000 Index. The average Russell Midcap Index member has a market cap of $8 billion to $10 billion, with a median value of $4 billion to $5 billion. The index is reconstituted annually so that stocks that have outgrown the index can be removed and new entries can be added. Read more for examples and further explanation including related video clips and also comments
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Fund Flow definition explanation

What is Fund Flow?
The net of all cash inflows and outflows in and out of various financial assets. Fund flow is usually measured on a monthly or quarterly basis. The performance of an asset or fund is not taken into account, only share redemptions (outflows) and share purchases (inflows).

Net inflows create excess cash for managers to invest, which theoretically creates demand for securities such as stocks and bonds. Read more for examples and further explanation including related video clips and also comments
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Beta definition explanation

What is Beta?
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns..

Also known as “”beta coefficient””. Read more for examples and further explanation including related video clips and also comments
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