Glossary of Stock Market Terms & Definitions - Mark E. Berch:

Overvalued
A stock price that is seen as too high according to the company'sprice-earnings ratio, expected earnings, or financial condition.

European Currency Unit (ECU)
An index of foreign exchange consisting of European currencies, originally devised in 1979. Also see Euro. Mark Berch

Risk premium approach
A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns. Mark Berch

Stock market
Also called the equity market, the market for tradingequities.

Mark E. Berch:Story stock/bond
A highly complex security that requires a long "story" so that investors may understand the corporation and be persuaded of its merits.

Listed security
Stock or bond that has been accepted for trading by one of the organized and registered securities exchanges in the United States. Generally, the advantages of being listed are that exchanges provide: (1) an orderly marketplace; (2) liquidity; (3) fair price determination; (4) accurate and continuous reporting on sales and quotations; (5) information on listed companies; and (6) strict regulation for the protection of securityholders. Antithesis of OTC Security.

Reverse-annuity mortgages (RAM)
Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity.Mark Berch

Bought deal
Securityissue in which one or two underwritersbuy the entire issue. Also known as a guaranteed or fixed-price sale; opposite of a best-efforts sale.

Mark Berch tips and tricks from the The ABC News Fixer

Mark Berch tips and tricks from the The ABC News Fixer

Mark E. Berch - The ABC News - Resolutions for knowledgeable buyer

The one and only thing the ABC News Fixer wants more compared with helping your own worries is actually assisting prevent new ones. In that particular intent, make sure you welcome our own resolutions:
Mark Berch all about net promo tricks:

Just in case I receive an web based promotional for getting a free trial version that demands a visa or mastercard for delivery and also managing, i will resolve to continue moving. 1st, it's not really entirely free – and second, their terms most likely will allow them to continue billing me month for month.

When I market for a car, I manage to check with my financial institution or credit union to check out just what variety of car loan I can afford to purchase. If perhaps it is just a used car, I'll bring along the ABC News Fixer's buyer helpful hints and check out the actual car well. And I will not be pressed to drive the vehicle home unless the loan is complete mainly because I know about the dreaded yo-yo trick.

Whenever I go and travel, I decide to never ever stow financial resources, devices or other valuables in my tested travel luggage. In case it might as well disappear, the airline will likely not be expected to reimburse me.

Mark E. Berch - phony loans:
If you are a fake credit debt collector buzzing with a personal debt I'm sure I do not owe? Perfectly, I resolve to cut short on you.

And also if you will be emailing me out of the blue with a mystery shopping job, i am not chewing on that trick, either.

In the event that I get into difficulty and cannot pay my home finance loan, I take care of to look for advice from my bank or from HUD . gov – instead of from charlatans posing as home mortgage relief firms.
I choose to inspect my credit profile every year at annualcreditreport . com, the official web page for customers to get one free credit report each and every year from all three loan reporting agencies.
Mark E. Berch moving to a new house:
If I need to move to a new house, I resolve to find Protect Your Move . gov for buyer strategies and to fully vet the mover. I will never accept an approximation over the telephone considering the fact that it happens to be more likely to be wrong. And i will consider that the moving service must release my belongings immediately after I pay up the total on the drafted binding estimation.

In case whatever awful takes place, I will most likely raise the alarm – using my state attorney general, various other consumer organizations and the ABC News Fixer.

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Mark Berch on the subject of:Basic Inflation

U.K. Rising prices slows down to 2.2%, bottom Level in twelve months
U.K. rising prices slowed down more compared with economists predicted in Oct and also is now the closest it's been to the Bank of England's 2 percent targeted from Sep 2012.

Consumer prices increased 2.2 % coming from one year earlier in comparison with 2.7 % the past month, the Office for National Statistics mentioned today in London. The average prognosis of thirty-four economists in a Bloomberg News surveil was actually for a reading of 2.5 percent. Mark Berch indicates that primary rising prices slowed down to 1.7 percent, the minimum since Sep 2009.
With Governor Mark Carney's forward-direction guidelines, the financial institution has pledged to not to take stimulus around unless jobless falls to 7 percent.

The bank's newer quarterly estimations to be released tomorrow will certainly show whether faster growth has prompted officials to change those viewpoint that the key interest rate will settle on a record minimum until late 2016. While deflation risks motivated the European Central Bank to ease policy a week ago, in the UNITED KINGDOM the chance of a pickup in prices weigh towards such a step.


The actual pound expanded its fall against the dollar after the reports were released and was exchanging at $1.5887 as of 11:21 a.m. London time, lowered 0.6 percent on the day. The yield on the standard 10-year U.K. authorities bond fell 3 basis points to 2.78 percent.

Mark Berch on the subject of:Basic Inflation
The greatest downward effects on the 12-month inflation rate in October was actually coming from transport expenses, these include motor fuels and air costs, plus university tuition fees, the stats office announced. Starting the previous calendar month, consumer prices rose 0.1 % in October, little than the average estimate for a 0.3 percent gain.

Presently there may be trending up stress on rising prices as Britain's premier power providers publish their rates by about 10 percent among the subsequent 2 months.

Center annually inflation, which excludes alcoholic beverages, food, cigarettes and energy prices, slowed from 2.2 percent in September. Economists made prognosis which would definitely ease to 2 pct.

Retail-price rising prices, a standard used in wage debates and as a base for the inflation-correlated bond trade, cooled to 2.6 percent in October from 3.2 % in Sep, the lowest since September 2012. Retail pricing excluding mortgage loan interest payments rose an annual 2.7 %, downward starting from 3.2 %.
BOE Approach

The BOE held its standard rate at 0.5 percent a week ago and had its target for bond purchase at 375 billion pounds ($598 billion).

Mark Berch:Economic Process Questions

The ECB all of the sudden chopped their benchmark rate of interest onto a record low on November 7 to avoid slowing rising prices from gaining entrenched as the economic condition struggles to recuperate. The Frankfurt-based bank halved its refinancing score to 0.25 % in a tactic anticipated by three of seventy economists in a Bloomberg research.

Euro-area inflation slowed down in October to 0.7 %, under the ECB's end goal of "close to but below" two %, sparking worries of a deflationary routine.

Inflation in Deutschland, The European Union's greatest economic system, slowed to 1.2 percent in Oct by a year before, when compared to 1.4 percent in Sep, the country's stats office said in these days.

In the U.K., different figures from the data office today revealed manufacturer output prices fall down 0.3 percent in October by September, the biggest decline since June 2012. Starting a year before, pricing rose 0.8 %, that the smallest yearly increase since October 2009. Input prices dropped 0.6 pct in October on the month and were down 0.3 percent from a year earlier. Mark Berch

Mark Berch displays in another article, the ONS said UNITED KINGDOM. house prices boosted 3.8 percent in Sep from a yr earlier. In London, price ranges boosted 9.4 %.

A U.K. house-price index rose to the highest in more than a 10 years in October as federal government programs to boost homeownership grown the pressure on supply, the Royal Institution of Chartered Surveyors said in a review today.

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Mark Berch - Triggers of the Great Recession

Mark Berch - Triggers of the Great Recession

A good number of aspects directly in addition to indirectly induced the ongoing Great Recession (and this started by the United States Of America sub prime home loan crisis), with consultants putting many weights to individual forces.

That economic crisis resulted because of a mix of overwhelming factors, for instance quick loan requirements especially during the 2002–2008 interval the fact that stimulated risky financing and additionally borrowing from the bank procedures; globally exchange fluctuations; real-estate bubbles that particular have since burst; budgetary policy choices corresponding of federal government incomes and/or operating costs; and solutions practiced by countries around the world to bail out hopeless banks fields and private bondholders, assuming private economic troubles and / or interacting deficits.( Eric Berch )

A certain story picturing the very triggers regarding the economic crisis begins by the considerable maximize in financial savings available on the market for funding usually in the 2000–2007 interval when the worldwide pool of fixed-income investments multiplied starting from more or less $36 trillion in 2000 to $80 trillion due to 2007. The "Giant Pool of Money" grown as financial savings coming from high-growth developing countries entered global money segments of market. Mark Berch
Market players seeking for more significant yields than those delivered by USA. Treasury ties required other options around the globe.

The enticement extended by such quickly accessible savings overwhelmed the strategy and additionally regulatory management mechanics in government after government, since lenders and also individuals decide to put most of these savings to use, creating bubble right after bubble all through the planet. Despite the fact that these particular bubbles have burst, resulting in property price ranges (example., real estate market together with business household) to refuse, the obligations supposed to be paid to international stock investors stay located at full rate, creating questions concerning the solvency of consumers, authorities and financial networks. Ian Berch
Troubled financial institutions in the USA. and additionally European countries slashed back financing forming a financing recession. Individuals and a number of governments ended up will no longer in position to borrow and spend at pre-crisis layers. Business owners also reduced their investments because demand faltered and minimized their workforces. More significant jobless because of the economic recession has made it harder for people and nations around the world to respect their responsibilities. Doing this was responsible for financing association failures to increase, deepening the loan crunch, thereby creating an unwanted feedback circle.

Ian Berch:The USA Economic catastrophe

The U.S.A. Financial catastrophe Inquiry Commission documented their conclusions in the month of january 2011. It decided just that "the catastrophe was possible to avoid and also was actually stimulated by: Widespread deficiencies in investment regulation, and this includes the Federal Reserve's disaster to control the tide of dangerous house loans; Dramatic complete breakdowns in corporate and business governance like far too many consumer banking companies playing recklessly and embracing on too much liability; An explosive combination of extreme borrowing and risk by households and Wall Street when brought the financial system on a collision course with economic crisis; important rule makers poorly prepared for the financial crisis, devoid of a overall knowledge of the financing program these folks oversaw; and general breaches in accountability and principles at all levels.


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Low (or no) Risk:

Low (or no) Risk: A conservative investment such as a Canada Savings Bond that pays a fixed interest rate based on current rates that is virtually risk free.

Mark Berch: Inflation Risk: A risk of investing in fixed income instruments is the threat of inflation. The bond market reacts strongly not only to actual inflation, but also to the threat of inflation. A report that the economy is gaining strength and unemployment is falling can cause bond prices to fall and yields to rise. The reason for this is that investors who buy and hold bonds or other fixed income investments may be looking at a term of 10 years before receiving the principal amount invested. If there is a high rate of inflation during this term, then the principal amount to be received will lose purchasing power. Additionally, the steady stream of interest payments the investor is receiving will also be losing purchasing power. To offset this rising general level of prices, investors will expect higher yields on their fixed income investments.

Banker's Acceptances (BAs): Short-term negotiable commercial paper issued by non-financial corporations, but guaranteed as to principal and interest by their banks. The guarantee results in a higher issue price and hence, lower yield. Ian Berch

Eric Berch: Technical Indicators (for return on equities): This is one of four areas used to help analyze and predict future equity prices. These are the result of analyzing investor attitudes and market psychology through the interpretation of charts of stock price trends and trading volumes.

Index: A selection of companies picked to represent the market or a portion of it. Indexes are used as statistical composites and serve as benchmarks for financial performance.

Eric Berch

Speculative Equities: Speculative investments result in maximum risk over a short-term. They are typically characterized by maximum price volatility. There are typically no earnings or dividends and consequently the P/E ratio is a useless tool for analysis.

Asset Allocation Fund: Similar to a Balanced fund, but typically without specific minimums and maximums for asset classes. The portfolio manager will move funds among equity, money market and fixed income securities according to the economic outlook.

Eric Berch Mark Berch
Growth fund: A more speculative and volatile fund with the goal of capital appreciation. These funds invest in companies that are in an expansion period and whose stock is expected to appreciate more than the broad market over the long term. Ian Berch

Correlation: How two securities move in relation to one another.
Ian Berch

Mark Berch: A load is a sales charge or commission paid...

Load: A load is a sales charge or commission paid to a broker or sales intermediary, not to the fund. A load that is paid upfront at the time of purchase is called the front-end load. One that is paid upon selling shares held for less than a specified period of time is called the back-end load or contingent deferred sales charge.

Ian Berch: Expense ratio: The fee expressed as a percentage of assets that is charged to shareholders to cover the costs of running a mutual fund.

Historical Rate of Return: Another term used for "average annual compound rate of return" normally used in reporting historical performance for mutual funds. It is a calculation of the annual rate of return that would result from an investor re-investing the return generated each year for an investment. Mark Berch

Eric Berch: Aggressive growth: This is an investment style of funds that hold positions in potential high-growth companies. Aggressive growth funds have high betas, meaning they tend to be more volatile than the stock market.

No-load fund: A fund with no sales charge.

Ian Berch

Balanced Fund: A mutual fund that seeks to provide a mixture of safety, income and capital appreciation. It invests in a mix of fixed income and equity investments, usually with specific minimum and maximum proportions.

Small cap: A stock with a market capitalization between $300 million and $2 billion.

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Value fund: A mutual fund that invests mainly in value stocks or stocks that are underpriced according to fundamental analysis. Such metrics as the price-to-earnings ratio are used to gauge value.

S&P 500: Standard and Poor's 500 index is a leading indicator of large cap U.S. equities made up of 500 stocks chosen by the S&P Index Committee. Stocks are chosen based on their representation of industries in the economy and liquidity. There is also an index for small-cap companies, the S&P 600, and an index of midcap companies, the S&P 400.

Book Value - Mark Berch

Book Value: The amount of net assets belonging to the owners of a business (or shareholders of a company) based on balance sheet values.

Ian Berch: Asset: Any item of value. Examples are cash, securities, accounts receivable, inventory, office equipment, a house, a car and other property.

Risk: The probability of losing capital. The more risk associated with an asset, the greater the potential for a capital loss. Increased risk can also be understood as a greater range in price or increased volatility. Mark Berch

Eric Berch: Unitholder: Refers to an individual or organization that owns one or more units of a mutual fund. The unitholder has certain ownership rights, such as the right to vote on key issues affecting the fund.

Growth Managers: Fund Managers whose style is to select stocks for growth or perceived growth potential with valuation typically being a secondary consideration.

Ian Berch

Asset allocation: An investing strategy that strives to minimize risk and maximize returns by dividing money into different investment instruments such as stocks, bonds and cash. The allocation decisions are based on the investor's goals, risk tolerance and time horizon.

Value fund: A mutual fund that invests mainly in value stocks or stocks that are underpriced according to fundamental analysis. Such metrics as the price-to-earnings ratio are used to gauge value.

Mark Berch Eric Berch
Return: The amount of money gained or lost on an investment in relation to the amount invested. It's usually stated as a percentage; for example a $25 gain on a $100 investment would have a 25 percent return.

Risk: The probability that the return will be less than expected.