Saturday, September 22, 2012

Wall Street Slang and Jargon

wall street slang also called Wall street Lingo is a must if you want to pass the CFA Chartered financial analyst examination
People tends to feel very intimidated when reading the financial news, indeed for the average person what does "Bull","Bear" or "Random Walking" have to do with money?
Wall street jargon also called "Lingo" makes finance funnier and will also impress your coworkers the next time you will talk about the FED being "Hawkish", moreover a good understanding of all this slang can also help you for your CFA "Chartered Financial Analyst" preparation especially if you are not a native english speaker.

Bash and Dash: a group of people spreads false rumor on the internet about a stock (bash) in order to get the stock at low price, the opposite strategy is Pump and Dump

Bearish (CFA Term): The market is likely to go down so investors short

Blow Up: When investors from mutual funds or ETFs redeem their capital due to a poor performance of the fund.

Bottom Fishing: To pick oversold stocks after a massive sell-off

Bullish (CFA Term): The market is likely to go up, so investors long

Buy and Hold (CFA): Buy a stock and hold it

Chasing Returns: Taking higher risk to get higher return

Closing Bell: Refer to the bell that announces the end of the trading day on the New York Stock Exchange NYSE

Dovish: Term used to indicate that the FED annoumces  interest rate will be lower soon.

Field Bet: Buying a bunch of stock within the same industry

Gentlemen Prefer Bonds: refers to the higher performance of bonds in bear markets compared to stocks

Hawkish:Term used to indicate that the FED announces interest rate will be higher soon.
Limit Down: Massive Price drop lead to a trading halt when it reaches the limit down

Hedgistan: Name given to the area of Wall street where all the hedge funds have offices

Merger Monday: Companies often publicly announce a merger on monday after taking the decision during the weekend.

Nifty Fifty: Refer to a group of 50 large companies in the 1960's highly overvalued that influenced the market

Perma-Bear: An investor who thinks the market is in perpetual bear

Perma-Bull: Long term positive view on the market such as buy and hold investors.

Random Walk (CFA): Investor who thinks the price of stocks moves randomly without pattern ( someone who do not believe in technical analysis)

V Rally: After a large Sell Off , stocks price tends to bounce back, especially due to traders using technical analysis.

Whartonite: Name given to young graduates from Wharton Business School (leading MBA in the world)

Feel Free to add some other Wall street jargon by commenting on this post.


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