Preferred Stock A class of share capital that entitles the owners to a fixed dividend ahead of the company's common shares and to a stated dollar value per share in the event of liquidation. Usually do not have voting rights. A common stock's current market price divided by its annual per share earnings. The interest rate chartered banks charge their most credit-worthy borrowers. The underwriting of a security and its sale to a few buyers, usually institutional, in large amounts.
Profit Taking Selling to take a profit - the process of converting paper profits into cash.
A sophisticated computerized trading strategy whereby a portfolio manager attempts to earn a profit from the price spreads between a portfolio of equities similar or identical to those underlying a designated stock index. Prospectus A legal document which describes securities being offered for sale to the public. Quote The highest bid to buy and the lowest offer to sell a security at a given time. Rally A brisk rise in the general price level of the market or an individual stock. Reaction Temporary price weakness following a price upswing.