What Is a Stock Keeping Unit (SKU)? A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The SKU is composed of an alphanumeric combination of eight-or-so characters. The characters make up a code
What Is the Stock Market? The term stock market refers to several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over-the-counter (OTC) marketplaces that operate under a defined set of regulations. Both “stock market” and “stock exchange” are often used interchangeably.
What Was the Stock Market Crash of 1987? The stock market crash of 1987 was a rapid and severe downturn in U.S. stock prices that occurred over several days in late October 1987. While the crash originated in the U.S., the event impacted every other major stock market in the world. In the five years
What Is a Stock Option? A stock option (also known as an equity option), gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a
What Is a Stock Pick? A stock pick is when an analyst or investor uses a systematic form of analysis to conclude that a particular stock will make a good investment and, therefore, should be added to their portfolio. This is also known as active management. The position can be either long or short and
What Is Stock Power? Stock power is a legal power of attorney form that transfers the ownership of certain shares of a stock to a new owner. A stock power transfer form usually is only required when an owner opts to take physical possession of securities certificates, rather than holding securities with a broker. A
What Is a Stock Quote? A stock quote is the price of a stock as quoted on an exchange. A basic quote for a specific stock provides information, such as its bid and ask price, last traded price, and volume traded. Key Takeaways A stock quote is the price of a stock as quoted in
What Is a Stock Savings Plan? In a stock savings plan, certain Canadian provinces provide tax credits to residents who purchase initial public offerings (IPOs) of local companies. Stock savings plans are designed to encourage middle and high-income earners to invest in provincial economies to promote the growth of local businesses. There are also stock
What Is a Stock Screener? A stock screener is a set of tools that allow investors to quickly sort through the myriad of available stocks and increasing exchange-traded funds according to the investor’s own criteria. Stock screeners are most typically available on brokerage trading platforms (usually free), but there are also some independent subscription-based stock
What Is a Stock Split? A stock split happens when a company increases the number of its shares to boost the stock’s liquidity. Although the number of shares outstanding increases by a specific multiple, the total dollar value of all shares outstanding remains the same because a split does not fundamentally change the company’s value.
