What Is a Market-Neutral Fund? A market-neutral fund is a hedge fund that seeks a profit regardless of an upward or downward market environment, typically through the use of paired long and short positions or derivatives. These funds can potentially serve to mitigate market risk as they seek to generate positive returns in all market
What Is a Market-on-Close (MOC) Order? A market-on-close (MOC) order is a non-limit market order, which traders execute as near to the closing price as they can—either exactly at, or slightly after the market close. The purpose of a MOC order is to get the last available price of that trading day. MOC orders are
What Is a Market-On-Open Order (MOO)? A Market-On-Open (MOO) order is an order to be executed at the day’s opening price. Market-On-Open (MOO) orders can only be executed when the market opens or very shortly thereafter, but must provide the first printed price of the day. A market-on-open order may be contrasted with market-on-close (MOC)
What Is Market Orientation? Market orientation is an approach to business that prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them. Companies that have a market orientation consider the opinions and needs of their target market as a critical component of their research and development (R&D) for new
What Is Market Penetration? Market penetration is a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. Market penetration can also be used in developing strategies employed to increase the market share of a particular product or service. Key Takeaways
What Is Market Perform? Market perform is an investment rating used by sell=side analysts when the expectation for a given stock or investment is that it will provide returns in line with those of the S&P 500 or other leading market averages. Market perform is a neutral assessment of a stock and is neither strongly
What is a Market Portfolio? A market portfolio is a theoretical bundle of investments that includes every type of asset available in the investment universe, with each asset weighted in proportion to its total presence in the market. The expected return of a market portfolio is identical to the expected return of the market as
What Is Market Price? The market price is the current price at which an asset or service can be bought or sold. The market price of an asset or service is determined by the forces of supply and demand. The price at which quantity supplied equals quantity demanded is the market price. The market price is used
What Is a Market Proxy? A market proxy is a broad representation of the overall stock market. A market proxy can serve as the basis for an index fund or statistical studies. The S&P 500 index is the best-known market proxy for the U.S. stock market. Index funds and exchange traded funds (ETFs) have been
What Is Market Research? Market research, also known as “marketing research,” is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product
