2009-09-22T23:23:17Z The process of contributing cash to invest in securities. This is done over a period of time and the goal is to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. 1 Accumulation 2009-09-22T23:23:17Z 2009-09-22T23:23:36Z Portfolio becomes active as soon as you activate your portfolio. Even after your 20 day trading is finished, portfolio will still be considered active until Pay Day as your ranking will continue to change after the End Day. 2 Active Portfolio 2009-09-22T23:23:36Z 2009-09-22T23:25:17Z The time US stock exchanges are closed. It’s usually from 4:00 PM EST to 9:30 AM EST except for a few half days. See US market hours. 3 After Market Hours 2009-09-22T23:25:17Z 2009-09-22T23:25:34Z An option that can be exercised anytime during its life. The majority of exchange-traded options are American. Since investors have the freedom to exercise their American options at any point during the life of the contract, they are more valuable than European options which can only be exercised at maturity. 4 American option 2009-09-22T23:25:34Z 2009-09-22T23:25:47Z The United States third-largest stock exchange by trading volume. Located in New York City, the AMEX handles approx. 10% of all securities traded in the U.S. Today, the majority of trading on the AMEX is in small-cap stocks, exchange-traded funds and derivatives. 5 Amex (American Stock Exchange) 2009-09-22T23:25:47Z 2009-09-22T23:25:58Z A financial professional with expertise in evaluating investments. An analyst presents buy, sell and hold recommendations on securities. (Also referred to as "financial analyst" or "security analyst"). 6 Analyst 2009-09-22T23:25:58Z 2009-09-22T23:26:08Z The simultaneous purchase and sale of an asset in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces. 7 Arbitrage 2009-09-22T23:26:08Z 2009-09-22T23:26:19Z A seller’s desired price. The price that a security holder is willing to sell a security, at a given time. 8 Ask Price 2009-09-22T23:26:19Z 2009-09-22T23:26:29Z The ratio of net sales divided by total assets. 9 Asset Turnover 2009-09-22T23:26:29Z 2009-09-22T23:27:03Z The ratio of total assets divided by stockholders'' equity. 10 Asset/equity ratio 2009-09-22T23:27:03Z 2009-09-22T23:27:13Z An option that has a strike price, which is nearest to the underlying futures price. 11 At-the-money 2009-09-22T23:27:13Z 2009-09-22T23:27:22Z Average number of transactions done on a single stock 12 Average Daily Volume 2009-09-22T23:27:22Z 2009-09-22T23:27:33Z The process of buying additional shares at higher prices. This raises the average price the investor pays for all his/her shares. In the context of short selling, averaging up is achieved by selling additional shares at a price higher than that of the initial purchase transaction. 13 Average up 2009-09-22T23:27:33Z 2009-09-22T23:27:43Z On a limit order, a buy order which is lower than the current market price or a sell order which is higher than the current market price. Such orders are held to be executed when the market price is suitable. 14 Away from the market 2009-09-22T23:27:43Z 2009-09-22T23:27:54Z Administrative and support personnel in a financial services company. Back office handle settlements, clearances, record maintenance, regulatory compliance, and accounting. 15 Back office 2009-09-22T23:27:54Z 2009-09-22T23:28:03Z A stock that is strongly believed to be an indicator of the overall markets condition. 16 Barometer stock 2009-09-22T23:28:03Z 2009-09-22T23:28:12Z A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market. 17 Bear market 2009-09-22T23:28:12Z 2009-09-22T23:28:21Z A statistically generated number used to measure volatility of a security in comparison to the market and determine the risk of the security compared to market risk, which is always 1. 18 Beta 2009-09-22T23:28:21Z 2009-09-22T23:28:33Z A buyer’s desired price. The price that a buyer is willing to pay for a security. 19 Bid Price 2009-09-22T23:28:33Z 2009-09-22T23:28:47Z The stock of a well-established, financially balanced company. Meaning dividends are paid without fail. These stocks tend to be less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500. 20 Blue chip stock 2009-09-22T23:28:47Z 2009-09-22T23:29:13Z “A certificate of indebtedness issued by a government entity or a corporation, which pays a fixed cash coupon at regular intervals.” The coupon is paid on the face value of the bond, which is usually one thousand dollar. 22 Bond 2009-09-22T23:29:13Z 2009-09-22T23:29:03Z The price at which the buyer purchased the asset for. 21 Book Value 2009-09-22T23:29:03Z 2009-09-22T23:29:22Z An individual or firm, selling financial products for investors. Private investors need a broker to execute their orders. In return, the broker charges commissions for executing their buy or sell orders. 23 Broker 2009-09-22T23:29:22Z 2009-09-22T23:29:34Z Bull markets are characterized with optimism, investor confidence and expectations that strong results will continue. Of course, no bull market can last forever, and sooner or later a bear market (in which prices fall) will follow. 24 Bull market 2009-09-22T23:29:34Z 2009-09-22T23:30:02Z An order placed with a brokerage to buy or sell a set number of shares at a specified or better price. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled. 27 Buy limit order 2009-09-22T23:30:02Z 2009-09-22T23:31:05Z To obtain ownership of a security or asset, in exchange for money or value. 28 Buy order 2009-09-22T23:31:05Z 2009-09-22T23:31:14Z Buy to Cover simply means you buy back your short positions to close out your exposure. It’s just a different name for buying when you’re trying to close out your existing short positions. 29 Buy to Cover 2009-09-22T23:31:14Z 2009-09-22T23:29:43Z A passive investment strategy where investor buys a security and holds on to it for a long term. 25 Buy-and-hold strategy 2009-09-22T23:29:43Z 2009-09-22T23:29:52Z An agreement between shareholders or business partners where both parties agree to purchase or sale a stock in. 26 Buy-sell agreement 2009-09-22T23:29:52Z 2009-09-22T23:31:23Z An option that gives the right (but not the obligation) to an investor to buy the underlying stock or futures contract at the strike price. It is a liability for the writer of the call option to sell the stock or future at the strike price on the option. 30 Call option 2009-09-22T23:31:23Z 2009-09-22T23:31:32Z An instruction by a trader not to carry out an order that has already been placed. A cancel order can only be placed if the earlier order has not been executed. 31 Cancel order 2009-09-22T23:31:32Z 2009-09-22T23:31:40Z Generally viewed as the unwise practice of buying stock after a rise and/or selling after a fall. Chasing the market can also be seen as lagging behind. 32 Chasing the market 2009-09-22T23:31:40Z 2009-09-22T23:32:15Z The last transaction price for a stock during market hours. 35 Close Price 2009-09-22T23:32:15Z 2009-09-22T23:32:25Z An option contract where the strike price is close to the current market price of the underlying security. 36 Close to the money 2009-09-22T23:32:25Z 2009-09-22T23:47:57Z Close trade means you are closing your existing positions either through sell or cover orders. The name is to distinguish from “Open Trades” when you create or add new positions. 37 Close Trades 2009-09-22T23:47:57Z 2009-09-22T23:31:51Z A bell that rings to signify the end of a trading session. 33 Closing bell 2009-09-22T23:31:51Z 2009-09-22T23:32:02Z The price of the last transaction for a given security at the end of a given trading session. Also referred to as “close”. 34 Closing price 2009-09-22T23:32:02Z 2009-09-22T23:48:12Z A fee charged by a broker for executing securities. This fee is charged for every transaction (trade, buy or sell) performed. At Zoodak, each trade will incur a virtual commission to simulate the cost of trading real stocks. The transaction commission is calculated as the larger of $10 or 0.5% of the transaction amount. Of course, these commissions are deducted from your virtual portfolio balance and they won’t affect your Account. 38 Commissions 2009-10-08T17:33:10Z 2009-09-22T23:48:23Z A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debt holders have been paid in full. 39 Common stock 2009-09-22T23:48:23Z 2009-09-22T23:48:34Z A survey by the Conference Board that measures how optimistic or pessimistic consumers are with respect to the economy in the near future. The idea is that if the consumers are optimistic, they tend to purchase more goods and services. This increase in spending will inevitably stimulate the whole economy. 40 Consumer Confidence index (CCI): 2009-09-22T23:48:34Z 2009-09-22T23:48:47Z A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living. CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. 41 Consumer Price Index (CPI) 2009-09-22T23:48:47Z 2009-09-22T23:48:57Z A term that describes the unit of trading for a stock option, future option or future. 42 Contract 2009-09-22T23:48:57Z 2009-09-22T23:49:07Z Bond that can be converted into common stock usually at the maturity of the bond. 43 Convertible bonds 2009-09-22T23:49:07Z 2009-09-22T23:49:16Z Preferred stock that can be converted into common stock at a particular time frame. 44 Convertible preferred stock 2009-09-22T23:49:16Z 2009-09-22T23:49:26Z Any event that brings material change to a company and affects its stakeholders. This includes shareholders, both common and preferred, as well as bondholders. These events are generally approved by the company's board of directors; shareholders are permitted to vote on some events as well. Splits, dividends, mergers, acquisitions and spin-offs are all examples of corporate actions. 45 Corporate action 2009-09-22T23:49:26Z 2009-09-22T23:49:38Z Cost basis is the price at which your open trades got executed. At Zoodak, we use Average Cost Basis method. Example: if you bought 50 ABC stocks at $10 per share and you later add more positions by buying 50 more ABC stocks at $20, your average cost basis for ABC stock is $15 per share. 46 Cost Basis 2009-09-22T23:49:38Z 2009-09-22T23:49:50Z The periodic interest payment made to a bondholder during the life of the bond. (Usually semi-annual) 47 Coupon 2009-09-22T23:49:50Z 2009-09-22T23:50:00Z The rate of interest paid on a bond, expressed as a percentage of the bond’s face value. 48 Coupon rate 2009-09-22T23:50:00Z 2009-09-22T23:50:11Z A strategy that involves writing a call option on securities and own the underlying security. This strategy allows investors to make a gain of the option price. 49 Covered call writing strategy 2009-09-22T23:50:11Z 2009-09-22T23:50:20Z Current Price is the latest price that the stock changed hands between buyers/sellers. It’s commonly referred to “last price” or “market price”. 50 Current Price 2009-09-22T23:50:20Z 2009-09-22T23:50:39Z The banks that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, Cleveland, St. Louis, San Francisco, Richmond, Atlanta, Chicago, Minneapolis, Kansas City and Dallas. These banks are the operating arms of the central bank. They implement the policies of the Federal Reserve Board and also carry out economic research. 51 Federal Reserve Bank 2009-09-22T23:50:39Z 2009-10-07T18:16:54Z Those who look at the company's business prospects, market positioning, management, etc. before making a decision to buy or sell are called "Fundamental Traders". Technical Traders are the ones purely looking at the graphs to see supply and demand of the stock and trade accordingly to logics that determine either buy or sell triggers. 63 Fundamental Trade 2009-10-07T18:16:54Z 2009-09-22T23:50:48Z A standardized, transferable legal agreement to make or take delivery of a specified amount of a certain commodity, currency, or an asset at the end of specified time frame. The price is determined when the agreement is made. Future contracts are always marked to market. 52 Futures Contract 2009-09-22T23:50:48Z 2009-09-22T23:50:57Z Shares in a company whose earnings are expected to grow at an above-average rate relative to the market. A growth stock usually does not pay a dividend, as the company would prefer to reinvest retained earnings in capital projects. Most technology companies are growth stocks. 53 Growth stocks 2009-09-22T23:50:57Z 2009-10-07T18:02:31Z Some people refer to buying stocks and holding them as "long" position. The opposite is "short" where you sell shares you don't own by borrowing from others in the hope that the stock will go down in price. 61 Long 2009-10-07T18:02:31Z 2009-10-07T18:14:17Z At Zoodak, the final day that the monthly tournament winners are determined is called "Pay Day". You can see the Pay Day on the calendar above your position summary table. 62 Pay Day 2009-10-07T18:14:17Z 2009-10-07T18:18:30Z Technical Traders are the ones purely looking at the graphs to see supply and demand of the stock and trade accordingly to logics that determine either buy or sell triggers. Those who look at the company's business prospects, market positioning, management, etc. before making a decision to buy or sell are called "Fundamental Traders". 64 Technical Trade 2009-10-07T18:18:30Z 2009-09-22T23:51:16Z In general, yield is the annual rate of return for any investment and is expressed as a percentage. With stocks, yield can refer to the rate of income generated from a stock in the form of regular dividends. This is often represented in percentage form, calculated as the annual dividend payments divided by the stock's current share price. Investors can use yield to measure the performance of their investments and compare it to the yield on other investments or securities. Higher risk securities generally offer higher expected yields as compensation for the additional risk incurred through ownership of the security. 54 Yield 2009-09-22T23:51:16Z 2009-09-22T23:51:27Z The quotient of two bond yields. 55 Yield Ratio 2009-09-22T23:51:27Z 2009-09-22T23:51:37Z "The interest rates that will make the present value of a bond’s remaining cash flows (if held to maturity) equal to the price (plus accrued interest, if any)." 56 Yield To Maturity 2009-09-22T23:51:37Z 2009-09-22T23:51:48Z A zero-coupon bond is a bond sold without interest-paying coupons. Instead of paying periodic interest, the bond is sold at a discount and pays its entire face amount upon maturity, which is usually a one year period or longer. 57 Zero-Coupon Bond 2009-09-22T23:51:48Z 2009-09-22T23:52:16Z Anyone making stock predictions at Zoodak is a ZooAnalyst. 60 ZooAnalyst 2009-10-08T21:46:42Z 2009-09-22T23:51:57Z Zoodak is Your New Exchange. It’s the next generation in virtual stock trading, market analysis and social networking. Users trade stocks listed on major US stock exchanges with virtual money and compete against others for cash prizes. They apply their knowledge of the market and supplied financial statistics to create their portfolios and post their stock analysis. They connect with friends, post messages and view their portfolio details, predictions and transaction history. 58 Zoodak 2009-10-08T21:48:07Z 2009-09-22T23:52:06Z Anyone participating in a stock trading tournament at Zoodak is a ZooTrader. 59 ZooTrader 2009-10-08T21:48:35Z