GlossaryGuide

A market order is an order to buy or sell a stock at the current market price. Unless you specify otherwise, your broker will enter your order as a market order. The advantage of a market order is that as long as there are willing buyers and sellers, you are almost always guaranteed your order… Continue reading MARKET ORDER

Market manipulation is when someone artificially affects the supply or demand for a security (for example, causing stock prices to rise or to fall dramatically). Market manipulation may involve techniques including: Spreading false or misleading information about a company; Engaging in a series of transactions to make a security appear more actively traded; and Rigging… Continue reading MARKET MANIPULATION

A “market maker” is a firm that stands ready to buy or sell a stock at publicly quoted prices.  Learn More.

A market index tracks the performance of a specific “basket” of stocks that represent a particular market or economic sector. U.S. examples include the Dow Jones Industrial Average, an index of 30 “blue chip” U.S. company stocks, the Standard and Poor’s 500 Index, and the Wilshire 5000 Index, which includes most publicly traded U.S. stocks.

A measurement of the performance of a specific “basket” of stocks considered to represent a particular market or sector of the U. S. economy. For example, the Dow Jones Industrial Average (DJIA) is an index of 30 “blue chip” stocks of U.S. companies.

Market capitalization is the value of a corporation determined by multiplying the current public market price of one share of the corporation by the number of total outstanding shares.

If you buy on margin and the value of your securities declines, your brokerage firm can require you to deposit cash or securities to your account immediately, or sell any of the securities in your account to cover any shortfall, without informing you in advance. The brokerage firm decides which of your securities to sell.… Continue reading MARGIN CALL

A “margin account” is a type of brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase securities.  Margin increases investors’ purchasing power, but also exposes investors to the potential for larger losses. Learn More.

A fee paid out of fund assets to the fund’s investment adviser for investment portfolio management. A fund’s management fees appear under Annual Fund Operating Expenses in the fee table in the fund’s prospectus.

Fees that direct-sold college savings plans may charge for continued participation in the plan.