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Q: do you know what a "hammering" is?

Category: glossary , Asked by: A. G. From Arlington, United States

A: the "hammering " is The rapid and concentrated sale of a stock thought to be overvalued by the market. It performed by investors and speculators who beleive that prices are inflated and that a period of liquidation is imminent. Hammering the market is achieved through large sale orders or many small sell orders. In some cases, investors may even collaborate on orders to attempt to push the share's price even lower. Visit FOREX.com

    please define a "league table"

    Category: glossary by R. Moreno from Luxembourg

    A ranking of companies based on a set of criteria such as revenue, earnings, deals or any other relevant metrics. The rankings are organized into lists, which can be used for investment research purposes or as promotional material for the companies on the list. Below is an example of a league table comparing the revenue and % revenue share of four different banks. Some of the most well-known league tables are those that track the dealings of investment banks, such a tables that tally the ongoing deals done by various banks. For example, a league table put out by a financial information provider may show all of the merger and acquisition deals that each bank has managed during a yearly period, illustrating the date in terms of the combined dollar value of the deals as well as the share of the merger and acquisition deal market for the period.

    please define a "call ratio backspread"

    Category: glossary by A. R. From Monte-Carlo, Monaco

    the "call ratio backspread " is A very bullish investment strategy that combines options to create a spread with limited loss potential and mixed profit potential. It is generally created by selling one call option and then using the collected premium to purchase a greater number of call options at a higher strike price. This strategy has potentially unlimited upside profit because the trader is holding more long call options than short ones. An investor using this strategy would sell fewer calls at a low strike price and buy more calls at a high strike price. The most common ratios used in this strategy are one short call combined with two long calls, or two short calls combined with three long calls. If this strategy is established at a credit, the trader stands to make a small gain if the price of the underlying decreases dramatically.

    what is "merton model"?

    Category: glossary by Q. A. From Philadelphia, United States

    A model, named after the financial scholar Robert C. Merton, that was developed in the 1970s and is used today to evaluate the credit risk of a corporation's debt. Brokerage firm analysts and some investors employ the model in order to determine a company's ability to service its debt, meet its financial obligations and to gauge the overall possibility of credit default. Also referred to as, "Asset Value Model". Fischer Black and Myron Scholes utilized Merton's work to build out what has since become known as the Black-Scholes pricing model. Securities analysts and loan officers attempting to determine a company's credit fault risk will utilize the Merton Model as a means of analysis. The model allows the analysts to better value the company, as well as determine its ability to remain solvent through the analysis of reported debt amounts and maturity dates.

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    what is a "macaroni defence"?
    A tactic used by a company as defence against a hostile takeover bid involving the issue of a large number of bonds that must be redeemed at a higher value if the company is taken over. So-called because the bonds redemption price is said to expand like m Visit Saxo Bank

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