ADR (American Depository Receipt)

American depositary receipts are negotiable instruments issued by a U.S. depository bank. They represent shares of stocks in a foreign company. They trade on U.S. markets just like any other…

Over-the-Counter Markets

An over-the-counter market is a decentralized market in which market buyers and sellers trade securities without a central exchange. Stocks are traded electronically by dealers who act as market-makers by…

Delisting

Listing requirements vary from one exchange to the next. On the New York Stock Exchange (NYSE), if a security’s price closes below $1.00 for 30 consecutive trading days, that exchange…

Penny Stock

A penny stock is commonly defined as a share of stock that trades for less than $5 per share. Some sell for just pennies, hence the name penny stocks. They…

Margin Call

A margin call occurs when the value of an investor’s margin account falls below the required amount set by the broker. This is usually the result of declining stock values…

Short Sellers

Short selling is an trading strategy that bets that the a certain stock will decline in value. It can be a speculative investment or hedge against the downside risk of…

Short Squeeze

A short squeeze can occur when there is a lack of supply and an excess of demand for a stock due to short sellers covering their positions. This increase in…