What are TruPS – Trust Preferred Securities? TruPS are trust-preferred securities issued by bank holding companies (BHC). They have some characteristics of both preferred stock equity and subordinated debt. Trust preferred securities (TruPS) are hybrid securities. They are issued by banks and bank holding companies (BHCs) beginning in 1996. The […]
Trading Terms
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What is Marginal Propensity to Save (MPS)? Marginal propensity to save (MPS) refers to the proportion of the next dollar received that a consumer would save as opposed to spending. Economists use marginal propensity to save (MPS) to measure the link between changes in income and changes in savings. It […]
What is a Dragonfly Doji Candlestick Pattern? A dragonfly doji candlestick pattern forms when a trading candlestick has the same high, open, and closing prices forming a capital letter “T” The Dragonfly Doji is typically interpreted as a bullish reversal chart pattern when it occurs at the bottom of a […]
What Is the Hedge Ratio? The hedge ratio is the hedged position value divided by the total position value. A ratio of 1 or 100% means that the position is fully hedged and a ratio of 0 means it is not hedged at all. The ratio is the comparative value […]
What Does To Stem the Tide Mean? Stem the tide is an expression meaning to stop or at least gain control of a situation. It usually refers to something bad that is happening on a large scale. Therefore, In the context of an investment or a trade, to stem the […]
Stop on Quote vs. Limit Orders vs. Stop Orders A Stop on Quote Order enables an investor to execute a trade at a specified price, or better after the quoted stock price reaches the desired stop price. It is used by investors who want to limit their downside to ensure […]