Tuesday, July 18, 2017

Weird Words of Wall Street

What do dead cats, gunslingers and zombies have to do with investing? In the often cockeyed parlance of Wall Street, each has a very specific meaning. Here are a few examples of Wall Street's more colorful terms:
Air Pocket Stock
A stock whose price plunges like a 747 hitting an air pocket - usually caused by shareholders rushing to sell on unexpected bad news.
Chastity Bonds
A bond that may be redeemed at par value after a takeover.
Dead Cat Bounce
When stock prices rebound right after a precipitous market decline. Even a dead cat will bounce if it falls far enough, right?
Pools of income-oriented, mortgage-backed securities - issued with maturity of 15 years by the Federal National Mortgage Association (better known as Fannie Mae).
Large institutions like mutual funds, pensions, banks and insurance companies whose voluminous trades can dramatically impact stock or bond prices.
The 10 technical analysts who forecast stock price movements on PBS's "Wall Street Week" television program.
Fall Out of Bed
When a stock's price drops on negative news about the company.