Technology and Investment Banking and Brokerage Key Terms
Know technology and investment banking brokerage key terms before investing in stocks and bonds
Investment bankers help companies acquire funds and offer advice to help investors make wise investments. So it’s vital to know how to use information technology in investment banking to ensure business success. Part of learning about information technology for investment banking is learning the key terms used to define investment banking services, institutions and practices. So take the time to learn technology and investment banking brokerage key terms to provide your clients with the latest stock and investment information, services and advice.
Majority shareholder
A majority shareholder is a person or business that controls more than half of the outstanding shares of a business or corporation. For some investments where the shares are equally distributed, there is no majority shareholder.
Try: Browse through the listings of major shareholders at G24 Innovations.
When Issued (WI)
When Issued (WI) is an abbreviation that refers to non-issued security transactions. Types of securities traded as WI include treasury securities, stock splits and government securities.
Try: Learn about WI by reading the definition at InvestHub.com.
White knight
A white knight is a corporation, a private company or an individual that is sought by a another firm during an unfriendly takeover. One type of white knight acquires a firm that is undergoing a hostile takeover attempt. The white knight can defeat the hostile takeover by placing a higher bid or striking a deal with the management of the business that is the center of the acquisition or hostile takeover. The other type of white knight helps a firm that is not the target of a hostile takeover by acquiring it to pay off debts.
Try: Read the New York Times blog that discusses a white knight.
BAN (Bond Anticipation Note)
A BAN is issued by a state or municipality to cover short-term debts. When the BAN note is mature, the debt is paid. BANs give investors a tax-free yield that is either higher or comparable with other tax-exempt debt notes of the same maturity.
Try: Read the article at the IN.gov website to find information on BANs.
SEC (Securities And Exchange Commission)
The Securities And Exchange Commission protects investors and to maintain orderly and fair stock markets. The SEC helps to facilitate capital formation to sustain and maintain economic growth to the benefit of the American people.
Try: Find out about the SEC at the United States Securities and Exchange Commission website.
Head and shoulders pattern
A head and shoulders pattern is a stock trading pattern used to chart stock price trends. When a stock reaches a plateau, also called a left shoulder and then rises higher to the head, and then drops down to the plateau or right shoulder, that is a head and shoulders pattern. This pattern illustrates the reversal of an upward trend when the pattern rises and then returns to the original plateau.
Try: Learn about head and shoulders patterns by reviewing the graphs and information at DeepMarket Stock blog.
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