What Is Short Interest? Short interest in the stock market refers to the number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be stated numerically or as a percentage, is a leading indicator of market mood. Extremely high […]
Trading Terms
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What Are Naked Calls in Options Trading? Naked calls are a type of option speculation strategy where an investor writes (sells) a call option without owning the underlying security. This strategy is also known as an uncovered call or an unhedged short call. It differs from a covered call strategy […]
Mean Reverting – What Is Mean Reversion? Mean reverting, reverting to the mean, or mean reversion are all phrases used to describe a statistical theory that is employed in finance. It implies that asset price volatility and historical returns will ultimately revert to the dataset’s long-run mean or average level. […]
Quad Witching – What Is Quadruple Witching Day? Quad witching refers to a date that occurs four times each calendar year. On quadruple witching days, stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third […]
What is Price to Free Cash Flow? Price to free cash flow is an equity valuation tool that compares a company’s market price per share to its free cash flow per share (FCF). This metric is very similar to the price to cash flow valuation metric, but it is considered […]
What Are Drag-Along Rights? Drag-along rights let majority shareholders drag minority shareholders into the sale of a company if minority holders are given the same price, terms, and conditions. Share offerings, mergers, acquisitions, and takeovers can all be complicated transactions. The more parties involved, the more complicated and difficult a […]