T

Thin Market:

• situation whereby there are very few buy orders and very few sell orders in place, thus reducing liquidity.

• may refer to market of an entire class of securities or commodities, or could deal with a particular stock.

• prices are more volatile in such markets, since the few trades that are actually completed could be done at severe swings from one another.

 

U

 

Unlisted Security

• a security (eg. stock or option) not listed on organized exchange (eg. New York Stock Exchange).

• such security is traded over-the-counter (OTC).

 

Unrealized Profit (Gain) or Loss:

• profit or loss on investment which has not been materialized or collected.

• also known as paper gain or loss.

• become realized once investment has been sold or cleared off the books.

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U.S. Nonfarm Payrolls:

• measure of the change from the previous month in the number of people employed in American goods, construction and manufacturing companies.

• not included in the measure are jobs in the farming industry, private household employees or non-profit organization employees.

• good indicator of job creation, which affects consumer spending and thus economic growth.
   

V

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Value Investing:

• investing strategy based on buying assets deemed to be trading at a price below calculated expectations and holding the investments until such time they reach the calculated expected value.

• calculations are based on fundamental analysis.

• value investors may be attracted by a low price/book value ratio, a high dividend yield or a low price/earnings ratio, to name a few possible criteria.

 

Venture Capital:

• important source of funding for start-up companies or existing companies beginning new operations/initiatives.

• higher risk investment (due to risk of failure of unproven venture) but may result in above average to significant future profits (if venture proves groundbreaking).

• generally sourced from investment banks, investment pools, and/or wealthy individual investors.

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Volatility:

• tendency for change in price of an asset or security to be extreme and very quick.

• as it rises, so does the risk associated with the investment.

• reasons are various and include such factors as an uncertain outlook or lack of interest.

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Y

 

Yield:

• general: return on money invested.

• bond yield: rate of return on amount of money invested in a bond, taking into consideration purchase price, annual interest payments, and maturity (redemption) value.

• stock (dividend) yield: rate of return of dividend in relation to stock's market price.