Let me share to you important things today. The title of this post might mean something bad. On the contrary, everything is okay. I feel great today and I came up with a poem (if you may call it.)
I promise, you will learn something.
I have one request though, please read the poem slowly, pay special attention to the words and terms I used.
Later, you will be surprised that this poem is not meaningless at all.
“The saucer is in” says the crowd
News spread on the street
Sandwich generation in boutique
Bogey with Bo Derek.
Godfather offer is too sweet to resist
The Crown Jewels taken on a Saturday night special
Chinese Wall fails
Dogs of the Dow miss
War Babies cry
Rocket Scientist sulks
Santa Claus Rally stops
Cash cow, Big blue turn Big Uglies
Zombies on a Daisy Chain
Dead cat bounce no more,
Fun money gone
Gnomes of Zurich celebrate
Black Monday comes
The words and terms used above are Finance and Investment terms that your trader, dealer, fund or investment managers and those people involved in Finance and Investment are using. There are thousands of terms but I just selected some for this purpose.
Saucer: A technical charting formation that indicates that a stock’s price has reached its low and that the downward trend has come to a close.
Crowd: Group of exchange members with a defined area of function tending to congregate round trading post pending execution of orders. These are specialists, floor traders, odd-lot traders, and other brokers as well as small groups with specialized functions.
Street: Short for Wall Street, referring to the financial community in New York City and elsewhere.
Sandwich Generation: The generation of middle-aged individuals who are pressured to support both aging parents and growing children.
Boutique: A small investment firm specializing in offering specific, but limited services to a select number of individuals.
Bogey: This is the benchmark return to which the performance of a portfolio manager or mutual fund manager is compared.
Bo Derek: A slang term used to describe a perfect stock or investment. Remember the movie “10” by actress Bo Derek which she portrayed the “perfect woman.”
Crown Jewels: The most valuable unit of a corporation because of profitability, asset value, future prospects, etc.They are often the target of takeover attempts.
Saturday Night Special: A slang term used to refer to a surprise takeover attempt. Many takeover bids are announced over the weekend to avoid too much publicity.
Godfather Offer: Takeover offer that is so generous that management of the target company is unable to refuse it out of fear of share-holder lawsuit.
Chinese Wall: The ethical (not physical) barrier between different divisions of a financial (or other) institution to avoid conflict of interest. A Chinese Wall is said to exist, for example, between the corporate-advisory area and the brokering department to separate those giving corporate advice on takeovers from those advising clients about buying shares. The “wall” is thrown up to prevent leaks of corporate inside information, which could influence the advice given to clients making investments, and allow staff to take advantage of facts that are not yet known to the general public.
Dogs of the Dow: Strategy of buying the 10 high-yielding stocks in the DJIA (Down Jones Industrial Average)
War Babies: A jargon for the stocks and bonds of corporations engaged primarily as defense contractors. Also called as war brides.
Rocket Scientist: Investment firm creator of innovative securities.
Santa Claus Rally: Rise in stock prices in the week between Christmas and New Year.
Cash cow: Business that generates a continuing flow of cash
Big Blue: Popular name for IBM taken from the color of its logo.
Big Uglies: Old industrial companies in gritty industries (such as mining, steel and oil) and as a result, they tend to be unpopular stocks with investors.
Zombies: Companies that continue to operate even though they are insolvent. Also known as brain dead or living dead.
Daisy Chain: A group of unscrupulous investors who, practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security so that they sell it at a profit.
Alligator Spread: A term referring to an unprofitable spread regardless of favorable market movements. This loss is due entirely to large commissions charged upon the transactions.
Dead Cat Bounce: A temporary recovery from a prolonged decline or bear market, after which the market continues to fall. Ever heard the saying, “Even a dead cat will bounce if dropped from high enough!”
Fun Money: Money that is not necessary for everyday living expenses that can be risked in highly volatile but potentially highly profitable investments.
Gnomes of Zurich: Term coined by Labour Ministers of Great Britain, during the sterling crisis of 1964, to describe the financiers and bankers in Zurich, Switzerland, who were engaged in foreign exchange speculation.
Aspirin Count Theory: A market theory that states stock prices and aspirin production are inversely (opposite) related.
The belief is that as stock prices fall, more and more people need pain relievers to get through the day.
Black Monday: The most notorious day in financial history (Oct 19, 1987). The DJIA fell 508 pointsfollowign sharp drops the previous week, reflecting investor anxiety about inflated stock price levels, federal budget, trade deficits, and foreign market activity.
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