Stock Market For Beginners Terms With P

Stock Glossary - P

A B C D E F G H I J
K L M N O P Q R S T
U V W X Y Z

Poison Pill Strategy

Poison pill strategy, developed in the 1980's, is designed to block an investor from accumulating a majority stake in a company and taking control of that company.

When a purchasing organization obtains a certain percentage of a company's shares, a poison pill is "triggered." Traditionally, poison pills are triggered when a hostile buyer obtains between 10% and 20% of the shares. Watch On YouTube

Promoters

A promoter is someone who starts a business with a certain goal in mind and then takes the measures necessary to achieve that goal.

Par value

A security's nominal face value.

Proxy

At a company meeting, someone who votes for and on behalf of a shareholder.

Penny Stock

A stock with a very low share price or very low market capitalization value.

Pump & Dump

Brokers and other stock promoters frequently use the pump-and-dump technique to take advantage of penny stocks' unpredictable, highly impressionable value.

Brokers and other stock promoters frequently use the pump-and-dump technique to take advantage of penny stocks' unpredictable, highly impressionable value. 

The brokerage pays a low price for the penny stock and then promotes its value to the media through a newsletter, calls, and emails in an effort to artificially and briefly increase the price. 

Price-to-Book

A ratio that evaluates the stock price of a company in relation to its book value (assets minus liabilities).

The price-to-book is determined as follows:
Share Price/Book Price per share OR Market Capitalization/Book Price

Price-to-Sales

Price-to-sales ratio, which measures how much a company's stock is worth in relation to its sales: Share price/Sales per share

Paper Trading

  1. Trading stocks with a fake account or with fake money.
  2. A way to practice before doing live trading.

Another form of paper trading is virtual trading in which the investor's portfolio is monitored by computer software.

Recommended Topics
FOUNDATION

Common Vs Preferred Stocks

Businesses that want to raise money by selling stock can choose between two types: common and preferred stock ...

CANDLESTICKS

Top 7 Reversal Candlesticks

Candlesticks are used to identify trading patterns that help technical analysts in setting up trades ...

QUIZ

Economics || Stocks || Crypto || Derivative

Test your knowldege on finance, stock market and investment. Examine yourself with various questions related to the finance ...

BOOKS FOR TRADERS

Entrepreneurship || Business || Trading

20+ Best Books on businesses, trading, investing, personal finance and ...

NEWSLETTER
Buckle up for Monday
A weekly take on trading, finance, companies and other cool stuff...

Join over 27,000+ readers & receive an eclectic mix of topics covering Wall Street, global market updates and finance— delivered in a beautiful weekly email.
Multiple Choice Questions








Question x of y
>
Top 10 Business Books