Bearish Study guides, Class notes & Summaries

AGEC 455 Final Exam questions and answers well illustrated. Arbitrage - correct practice of taking advantage of a price imbalance between two or more markets in hopes of making a profit Bar Charts - correct s of futures prices drawn with vertical lines, showing the daily high, low and closing prices Bearish - correct answers.a belief that the market price will decrease Bullish - correct answers.a belief that the market price will increase Carryover - correct on of current supplies compr...

Bearish Symmetric Triangle - ANSWER-A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines, the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. Falling Wedge - ANSWER-The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. Bull Flag - ANS...

top-down approach - Answer-A method of analyzing securities that starts with the overall market and narrows down to the specific company Treynor measure - Answer-A measure of reward to nondiversifiable volatility (systematic rISK) Unemployment Rate - Answer-A measurement of the percentage of the U.S. labor force that currently is not working but is willing and able to work and is actively seeking employment Value Investing - Answer-Investing in stocks that are considered underpriced given t...

Sales Mastery Exam Which statements are TRUE about option contracts? I Calls go "out the money" when the market price rises above the strike price II Calls go "out the money" when the market price falls below the strike price III Puts go "out the money" when the market price rises above the strike price IV Puts go "out the money" when the market price falls below the strike price A I and III B I and IV C II and III D II and IV - CORRECT ANSWER-The best answer is C. An "ou...

David, a senior analyst with a brokerage firm, decides to change his recommendation for the common stock of Pigeon Industries, Inc. from a "buy" to a "sell". This change in investment advice is mailed to all the firm's clients on Wednesday. Next day, a client calls in with a buy order for 500 shares of Pigeon Industries, Inc. In this circumstance, Johnson should: - Answer Advise the customer of the change in recommendation before accepting the order. The mosaic theory holds that an an...

Declaration Date - Set by the Board od Directors ( BOD) - Date dividend is decalred by BOD Record Date - (set by the BOD) - Owner of stock on Record Date entitled to dividend Payable Date - Set by the (BOD) - Date dividend is paid Ex-Dividend Date STOCKS - Set by Self Regulatory Organization (SRO) (FINRA) - Date that the Price of the stock is reduced by declared dividend ( if the dividend is .50 the stock will trade below the .50) - 2 Business days before record date *** MUTUAL...

CMT level 3 A strong open followed by strong close will allow trader to do what? ANSWER- Buy on a pullback after next open. A weak close after strong open will allow trader to do what? ANSWER- Sell short near following open Highs and lows occur where during the day? ANSWER- Most often at the open Large opening gaps imply what about the day? ANSWER- Greater volatility Weaknesses of Candlestick charting ANSWER- 1. Majority of patterns are reversal patterns and require a trade agai...

Call option Gives the holder the right, but not the obligation to buy a fixed amount of securities at a fixed price for a fixed period of time . They pay a premium-the marker price of the contract. Holder must deliver cash and take delivery of stock (buy stock) Customer is fealing bullish if he buys a call contract Settlement time for call contract 2 business days after exercise days Holder Buyer (long) If a customer buys a put contract they are feeling: Bearish ...

CMT Level 2 Schabacker's Rules: End of Bull Market ANSWER- 1. Volume increases sharply 2. Popular stocks rise significantly while others collapse 3. Interest rates are high 4. Stocks are popular topic of conversation 5. Warnings of overheated mkt. are on the news Schabacker's Rules: End of Bear Market ANSWER- 1. Low Volume 2. Commodity prices have declined 3. Interest rates have declined 4. Corporate earnings are low 5. Stock prices have steadily declined and bad news everywher...

Beat The Market Maker Strategy (BTMM) E-BOOK 1