CAPEX – Capital Expenditure
Capital expenditure, also known as capital expense (CAPEX) is defined as the expenses used by companies in acquiring assets for a long term, or making renovations or upgrades which will not be exhausted in a short while. For example, in textile industry, the expenses for the machines and their repairmen are the capital expenditures, as well as the buying...
XRT
What is 'XRT' A notation on a ticker tape that is used to indicate that a security is trading on an ex-rights basis. When used in conjunction with a security that has just undergone a rights offering, the word is intended to remove any uncertainty that may occur by reaffirming that such rights stay with the seller of the security...
RSI – Relative Strength Index
Relative Strength Index (RSI) is a technical analysis tool that is used by investors to make investment decisions. Developed by J. Welles Wilder, RSI is a momentum oscillator that helps in determining the rate of change of prices. RSI values range from 0 to 100. An RSI of 30 indicates that the asset is oversold while an RSI greater...
C-Suite
What is 'C-Suite' C-suite is a widely-used slang term used to collectively refer to a corporation's most important senior executives. C-Suite gets its name because top senior executives' titles tend to start with the letter C, for chief, as in chief executive officer, chief operating officer and chief information officer. Explaining 'C-Suite' The C-suite is...
What is ADR
ADR stands for American Depository receipt. It is issued by the United States depository bank and is a negotiable certificate which represents a certain number of shares. This is often just one share of company stock in a foreign company. Currently, the ADR is traded like any domestic shares on United States stock markets. Are There Fees Associated with...
Y2K
What is 'Y2K' A shorthand term for "the year 2000" commonly used to refer to a widespread computer programming shortcut that was expected to cause extensive havoc as the year changed from 1999 to 2000. Instead of allowing four digits for the year, many computer programs only allowed two digits (e.g., 99 instead of 1999). As a...
ILS (Israeli New Shequel)
What is 'ILS' For the Israeli New Sheqel (ILS), sometimes known as the Israeli New Sheqel (ILS), the currency abbreviation or currency sign is ILS. In addition to being made up of 100 agorot, the New Sheqel is frequently represented by the sign ₪. This sign is a combination of the initial letters of the Hebrew words "sheqel" and "hadash,"...
Quadruple Witching
What is 'Quadruple Witching' Quadruple witching refers to an expiration date that includes stock index futures, stock index options, stock options and single stock futures. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December. Much of the action...
Macaroni Defense
What is 'Macaroni Defense' An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over. Explaining 'Macaroni Defense' Why is it called Macaroni Defense? Because if...
Valuation Clause
What is a Valuation Clause A valuation clause is a clause in a contract that stipulates the value of goods or services to be exchanged. This type of clause is typically used in purchase contracts, where the buyer and seller agree on a set price for the goods or services being exchanged. In some cases, the valuation clause may also...