| Regular-Way Trade - RW |
| A type of trade that is settled through the regular settlement cycle required for the particular investment being traded. The settlement cycle is the time that the regulations of the securities market allows for the buyer to complete payment and for the seller to deliver the goods being purchased. The settlement cycle differs for different assets. Most trades are regular-way trades. |
| Sector ETF |
| A class of exchange-traded fund that invests in the stocks and securities of a specific sector, typically identified in the fund title. Most sector ETFs focus on U.S.-based stocks, but several will invest globally in an attempt to capture the worldwide performance of the given sector. Assets will be passively managed around an underlying index; several use indexes provided from data services like S&P and Dow Jones. Leveraged sector ETFs are also available, which aim to achieve double the return of the underlying index, both on advancing and declining trading days. |
| Correction |
| A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index. Corrections are generally temporary price declines, interrupting an uptrend in the market or asset. |
| Trade Resumption |
|
To resume trading activities after having been shut down (halted) for some period of time. This can relate to trading between nations, or the resumption of open-market trading in a security such as a common stock or even an entire exchange.
Trading will be halted in a security if there is material information that needs time to disseminate, or fundamental questions have been raised about the reliability of previously-released information. |
| UN/EDIFACT |
| The United Nation's body that sets and administers international standards for Electronic Data Interchange usage. |
| Liquidity Path |
|
The path taken by a company to provide liquidity for company founders or owners. The most common liquidity paths are through mergers and acquisitions to a larger company, and through initial public offerings (IPOs) of stock to investors.
This is a way of referring to the process of taking a company public. Without a path to liquidity, private company owners may not be able to convert their ownership in the company to any other means of currency or investment. |
| Panic Buying |
| A situation in which prevailing interest rates are low and savings rates are high, making monetary policy ineffective. In a liquidity trap, consumers choose to avoid bonds and keep their funds in savings because of the prevailing belief that interest rates will soon rise. Because bonds have an inverse relationship to interest rates, many consumers do not want to hold an asset with a price that is expected to decline. |
