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Monday, February 14, 2011

Finance Glossary

Open Order: Open orders are orders that remain valid till they are executed by the brokers or specifically cancelled by the investor. They are also known as Good Till Cancelled orders or GTC Orders.


Fill or Kill Order: These orders are also known as FoK Orders. These orders are meant to be executed immediately. If not executed immediately, they are to be treated as cancelled.


Lame Duck: A lame duck is a bear who has made a short sale but is unable to meet his commitment to deliver the securities sold by him on account of rise in prices of securities subsequent to the short sale. He is said to be struggling like a lame duck.


Private Placement: A private placement is a sale of securities privately by a company to a selected group of investors. The securities are normally placed, in a private placement, with the institutional investors, mutual funds or other financial institutions.