What are Market Indicators? Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves. Market indicators are a subset of technical indicators and are typically comprised of formulas and ratios. They aid investors’ investment/trading decisions. Key Takeaways Market indicators are quantitative in nature
What Is Market Swoon? Market swoon is a buzzword for a dramatic, sudden decline in the overall value of the stock market. A broader event than a downtick or a downswing, a market swoon refers to the behavior of a market as a whole. Market swoon is a colloquial idiom used in the popular press to
What Are Marketable Securities Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year, and that the rates at which they can be bought or sold have little effect
What Is Market Access? Market access refers to the ability of a company or country to sell goods and services across borders. Market access can be used to refer to domestic trade as well as international trade, although the latter is the most common context. Market access is not the same as free trade. The ability
What Is the Market Approach? The market approach is a method of determining the value of an asset based on the selling price of similar assets. It is one of three popular valuation methods, along with the cost approach and discounted cash-flow analysis (DCF). Regardless of the type of asset being valued, the market approach
What Is a Market Average? A market average is an indexed measure of the overall price level of a given market, as defined by a specified group of stocks or other securities. A market average computes the sum of all current values of assets in the group and then divides that by the total number
What Is the Stock Market Capitalization-to-GDP Ratio? The stock market capitalization-to-GDP ratio is a ratio used to determine whether an overall market is undervalued or overvalued compared to a historical average. The ratio can be used to focus on specific markets, such as the U.S. market, or it can be applied to the global market, depending
What Is Market Capitalization? Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock. The investment community uses this figure to determine a company’s size instead of sales or total asset figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good
What Is the Market Capitalization Rule? The market capitalization rule is a rule set by the New York Stock Exchange (NYSE) to determine a minimum market value for a company to continue to be listed on the exchange. The market capitalization rule states that companies must maintain a minimum market cap of $15 million over
What Is a Market Challenger? A market challenger is a firm that has a market share below that of the market leader, but enough of a presence that it can exert upward pressure in its effort to gain more control. Market challengers are able to jockey for industry leadership in several ways: Challenging the market
