Friday, February 3rd 2012 - 06:06:58 pm

TradeStocksAmerica.com Glossary of Terms

Glossary of Terms
(Some abbreviations are for communication on the Trading Room)

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Gann Angles - developed by W.D. Gann which was a way of studying price charts. The use of geometric angles in conjunction with time and price were his main approach to his techniques. He believed that specific geometric patterns and angles had unique characteristics that could be used to predict price action.

Gap-down - is when the morning price is lower than the previous day’s close measured at the opening of the pre-market and regular market trading.

Gap-up - is when the morning price is higher than the previous day’s close measured at the opening of the pre-market and regular market trading.

GLOBEX – after hours electronic trading system. This can give be useful to give you indications of the next day’s trading. If there were exceptionally good or bad earnings after hours, this would be indicated on the GLOBEX.

GNMA - Government National Mortgage Association. A government-owned agency which buys mortgages from lending institutions, securitizes them, and then sells them to investors. Because the payments to investors are guaranteed by the full faith and credit of the U.S. Government, they return slightly less interest than other mortgage-backed securities.

Going private - The repurchasing of all of a company's outstanding stock by employees, private organization or a private investor. Private means that it is not owned by shareholders of a public company on an exchange. As a result of such an initiative, the company stops being publicly traded. Usually both the buyer and selling company takes on significant debt to finance the change in ownership structure. Companies might want to go private to have more control and flexibility to make changes without shareholder approval or that the changes planned would be looked upon as unfavorable to the investing public. Also known as privatization.

Going public - Performing an initial public offering. Opposite of going private (see IPO).

Growth stock - Stock of a company which is growing earnings and/or revenue faster than its industry or the overall market. Such companies usually pay little or no dividends, preferring to use the income instead to finance further expansion.

Gunslinger – A term that describes a trader or hedge fund manager who invests in extremely risky stocks in hopes of high returns and typically trades using short term strategies.

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