Options Manual

Page 164

A hybrid technical analysis tool which combines the characteristics of an oscillator with trend tracking to identify buying and selling signals. Majority Shareholder A shareholder who is part of a group that controls more than half of the outstanding shares of a corporation. Margin Allows investors to buy securities by borrowing money from a broker; the difference between the market value a stock and the loan a broker makes. Margin Account An account that can be leveraged, in which stocks can be purchased for a combination of cash and a loan. The load is collateralized by the stock; if the value of the stock drops sufficiently, the owner must either put in more cash, or sell a portion of the stock. Market Analysis An analysis of technical, corporate, and market data used to predict movements in the market. Margin Call A demand for additional funds because of adverse price movement in a stock bought on margin; maintenance margin requirements; security deposit maintenance. Market Capitalization The total dollar value of a company’s equity. Calculated by multiplying the current price of the stock by the shares outstanding. Market Ceiling The most immediate zone of resistance in a stock. Market Floor The most immediate zone of support in a stock. Market Guide A report produced by Multex.com to compile recent and current financial statement data such as earnings, revenues, etc. for the entire stock market.


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