security market line

Security Market Line Definition – Explanation – How To Calculate

What Is the Security Market Line? The security market line (SML) is a theoretical representation of the expected returns of assets based on systematic, non-diversifiable risk.  The security market line (SML) is a line investors calculate and plot on a trading chart.  It serves as a graphical representation of the […]

Teenies

Teenies – What are Teenies in Securities Trading?

What are Teenies in Stock Trading? Teenies were once the smallest measure of value in stock trading. Teenies were equal to one-sixteenth of one basis point.   In April 2001, the Securities and Exchange Commission ordered all U.S. stock markets to use decimalization. As a result, stock quotes switched from using […]

Ledger Balance

Ledger Balance vs Available Balance – What’s the Difference?

What Is a Ledger Balance? A ledger balance is usually computed by a bank at the end of each business day.  It includes all withdrawals and deposits to calculate the total amount of money in a bank account. In many cases, it is also the opening balance in the bank […]

Flotation Costs

Flotation Costs Definition – How to Calculate – Examples

What Are Flotation Costs in Finance? Flotation costs are non-recurring expenses that are paid to third parties to facilitate the issuance of new securities in the market. Flotation costs are incurred by publicly-traded companies when they issue new stock.  They incur expenses, such as underwriting fees, legal fees, and registration […]

Time in Force

Time in Force – What is Time in Force in a Stock Trade?

What is Time In Force in Stock & Options Trading? Time in force is a special instruction used when placing a stock or options trade.  It specifies how long an order will remain active before it is executed or expires. These instructions are especially important for active traders and allow […]

Reverse Merger

Reverse Merger Definition – Explanation – Example

What is a Reverse Merger? A reverse merger occurs when a smaller private company becomes a public company by purchasing control of a larger public company. The shareholders of the private company usually receive large amounts of ownership in the public company and control of its board of directors.  Once […]