Trading Basics
Dividend Adjustment
An adjustment made to an equity derivative to reflect a dividend in the underlying. Typically this is offset by a change in price from the underlying moving to reflect the payment.
Other Trading Basics
Buyback
When companies purchase their own shares.
This reduces the amount of shares issued.
Acquisition
When the majority of shares changes hands in a company.
This is typically when one company buys another.
Bid
Traders can go short at the bid price.
The terminology is from the broker point of view, they are bidding to buy from you.
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