Trading Basics
Dutch Auction
An auction process where the price starts high and is gradually lowed. Very useful when auctioning bond issues.
Other Trading Basics
Alpha
This is a measure of price performance vs a benchmark.
If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.
ABS
Asset-backed securities.
These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.
Bulls
Bulls are market participants and commentators that believe the price of a security will rise.
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