posted
Thread full of definitions, and here is first one:
"Pump and dump - Refers to actions by brokers or market makers to attract new buyers. Here, the brokers create the illusion of high trading volume by inflating or pumping up the market for the security. This engineers a brief period of inflated prices. These activities may prompt investors to purchase the targeted securities only to have the broker dump many shares on the market place at the momentarily higher prices. This triggers a rapid decline in values and impacts the recent investors."
"Short Selling - Is the act by which a speculator or risk manager sells an instrument at a high price with the intent of purchasing it lower. This is particularly the case for the speculator. The risk manager would generally be selling short against a specific or global exposure. There are technical differences in selling short on the futures and securities markets. Also, the purchase of puts or other derivative strategies can serve as a substitute for being short. There are different rules which apply to short sellers on securities markets. The key differences are between market makers and market participants."
"Reverse Split - Occurs when a corporation reduces the number of shares outstanding by reorganizing its capitalization structure. Here, fewer shares may be an effort to have a higher unit share price. One motivation for this is that some exchanges have listing/delisting criteria of which share price is a factor. The proportional ownership of the shareholders does not change but the shares held do change."
Feel free to contribute.
------------------ 'Alone we can do so little; together we can do so much.' - Helen Keller
[This message has been edited by TradingWizard (edited June 15, 2004).]
posted
Naked Shorting Definition (sometime it is good to hear different versions for better understanding)
cool1sh wrote: "Market Makers (MM) selling more shares than they were authorized to sell. Some ppl think there are 500B-1T CMKX shares even though the O/S is lot less."
WWJD-thru-me wrote: "Naked shorting stock means selling shares of a stock you don't own (shorting) without seeing if they are available to borrow and not accounting for them or returning them. So basically they are creating shares out of thin air. Doing this creates an unlimited supply of the stock so even if our demand is very high- there does not have to be any pressure on the price since supply and demand doesn't matter with an unlimited supply. The MM's (market makers are allowed to be Naked short to create a liquid market but are supposed to nake sure shares are available and cover and settle at some point). It becomes fraud when it reaches the point it has with CMKX. They are possibly short the whole Outstanding share count and then some."
Upside wrote: "Naked Shorting: The illegal practice of short selling shares that haven't been borrowed or do not exist at all."
------------------ 'Alone we can do so little; together we can do so much.' - Helen Keller
"FREESHARE are shares that have been purchased, then a partial position sold for enough money to cover all of original expense for all shares purchased(excluding tax).In effect you have created a LONG position at no risk. This works nicely for companys you REALLY like and think will prosper."
Meshoe45 wrote: "You buy 100000 shares @ .01 which = $1000 Stock goes up to .015 You now have $1500 worth of stock Keep 33,333 shares @ .015 = $500 (These are your free shares) Sell the other 66,666 @.015 and make your $1000 investment back."
------------------ 'Alone we can do so little; together we can do so much.' - Helen Keller
posted
TradingWizard - you might want to include in your reverse split definition that the authorized shares remain the same. So a company that has 500 million authorized and 500 million outstanding may not legally issue more shares. But by doing a 1 for 10 reverse split the outstanding shares drop to 50 million and the company may now issue 450 million more shares (see dilution)
Dilution – The issuance of more shares by a company thereby reducing the percentage owned by all existing shareholders.
Oh, and I'd like a good definition of share retirement. Is this the opposite of issuing shares? So in the above example if I retire 100 million shares does that mean the authorized is now 500 million and the outstanding is 400 million? How does this differ from treasury stock? I think there IS a difference.
------------------ ~,-,-< GatorMan
[This message has been edited by GatorMan (edited June 17, 2004).]
posted
I believe it is where reacquired shares (bought back shares) are made to be no longer authorized for sale.
Posts: 393 | Registered: Jul 2003
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posted
Can someone translate this statement in simple language and what kind of effect would this have on the pps? Thanks.
"Tm Bioscience Corporation (TSX: TMC) today announced the completion of the consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation share for every five (5) pre-consolidation common shares."
I am assuming that they are reducing total number of outstanding shares issued, and I thought that the pps should go up, but it didn't.
------------------ 'Alone we can do so little; together we can do so much.' - Helen Keller
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