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how to avoid or fight off an unsolicited bid | a vulnerable company may have several mechanisms with which to defend itself if it becomes the target of an unsolicited offer or ultimately a hostile takeover first it can reject the offer outright if that doesn t work there is the people poison pill defense where the management of the target company threatens to resign in the event of a takeover this would force the acquirer to assemble a new management team if the acquisition was successful which may be costly another defense mechanism is the poison pill where shareholders buy more company stock at a discount thereby raising the number of shares the bidder will have to purchase to realize the unsolicited bid another way to avoid being a target is to set up an employee stock ownership plan which would allow employees to buy shares in the company thereby giving them the ability to vote alongside management about important decisions involving the company example of an unsolicited bidcompany abc an african oil company makes an unsolicited offer to purchase another african oil company company def company abc believes that by purchasing def it will remove a competitor grow its business by expanding its market share and absorb the cutting edge technology that def has created abc offers 1 billion in a proposed all cash deal however def believes the price is too low and turns the deal down abc comes back with another unsolicited bid in the amount of 1 4 billion def ponders this deal until company xyz a saudi oil company makes an unsolicited bid of 2 billion this price is considered high by market analysts and is too expensive for company abc to compete with xyz has significant reserves of cash on hand and covets def s technology the offer is accepted by def and the merger goes through with xyz | |
what is the difference between unsolicited and solicited | the difference between an unsolicited bid and a solicited bid is that in a solicited bid the target company wants to be sold and is actively seeking a buyer an unsolicited bid is when the target company is not actively seeking a buyer and may not be interested at all in being acquired | |
what is a hostile takeover | a hostile takeover is when a company or investment firm tries to purchase a company that does not want to be acquired a hostile takeover usually involves going over the management team directly to the shareholders or buying up large percentages of a company s shares to obtain a position of control | |
what is the difference between a merger and an acquisition | a merger is when two companies come together and combine their resources and respective advantages to create a brand new company an acquisition is when a company buys another company and the company that is bought is folded into the company that bought it | |
what is an unsponsored adr | an unsponsored adr is an american depositary receipt adr issued by a depositary bank without the involvement participation or consent of the foreign company it represents ownership in understanding unsponsored adrsadrs are negotiable certificates that represent a certain number of shares in a foreign company adrs are issued by banks outside the u s and trade just like shares on american stock exchanges in u s dollars these securities allow foreign corporations to enter the american financial markets and attract american capital they also give american investors a way to invest in foreign companies they may otherwise not be able to access adrs can be sponsored or unsponsored a sponsored one is issued in collaboration with the foreign company while an unsponsored adr is established without the company s cooperation | |
how does an adr get established in the u s without a company s consent the answer is simple demand a depository entity can issue certificates when there s heavy demand from investors for ownership in a specific company from abroad the issuing entity is normally a broker dealer that owns common stock in the company | unsponsored adrs are normally issued by broker dealers that own common stock in a foreign company because they re issued without the consent or cooperation of the foreign company unsponsored adrs generally trade over the counter otc rather than on a stock exchange and there s another catch shareholder benefits and voting rights may not be extended to the holders of these particular securities special considerationssince depository banks were not required to notify the underlying issuers or obtain permission before registering unsponsored adrs with the securities and exchange commission sec there was a rush to bring them to market resulting in multiple unsponsored adrs sometimes being created for the same issuer the number of unsponsored adr issues surged after oct 10 2008 when the sec amended an exemption applicable to foreign issuers this exemption allowed them to have their securities traded through the u s otc market without the registration required under section 12 g of the sec act of 1934 sea this amendment eliminated the written application and paper submission requirements by providing an automatic exemption from section 12 g to foreign issuers that met certain conditions these conditions required the issuer to maintain a listing of its shares in its primary market outside the u s and publish electronically specified non u s disclosure documents in english unsponsored adrs vs sponsored adrsas mentioned above sponsored adrs have the full cooperation of the foreign company enabling them to tap into international capital markets directly although a sponsored adr would be listed in the united states the issuing company still has its revenue and profit denominated in its home currency there are three levels of sponsored adrs more than 2 000 adrs both sponsored and unsponsored traded in the united states in 2012 according to the sec example of an unsponsored adrmany large global corporations use unsponsored adrs to attract american capital for example american investors can invest in royal mail plc a postal and delivery service company from the united kingdom that was founded by henry viii the company s unsponsored adr trades otc under the ticker symbol roymy | |
what is unstated interest paid | unstated interest paid is the amount of money the internal revenue service irs assumes has been paid to the seller of an item that has been sold on an installment basis unstated interest must be calculated in some cases when you have sold an item on installment basis but have charged the customer little or no interest because interest income must sometimes be treated differently than other types of income it may be necessary to estimate which portion of an installment payment is actually interest income 1 understanding unstated interest paidunstated interest paid is only calculated for contracts in which interest payments are not included or when the interest charged falls below the test rate of interest if a contract or invoice describes both an interest payment and a principal payment the interest payment is referred to as stated interest stated interest in an installment contract must be greater than the test rate of interest which in most cases is the based on the applicable federal rates afrs 2 the applicable federal rate is calculated by the irs and published monthly online and by various financial news sources the irs publishes three different applicable rates short term mid term and long term rates 3 4 the short term rate is calculated by averaging the rates the government pays on bond issues with maturities of three years or less the mid term rate is derived from averaging the rate paid on treasury securities between three and nine years in maturity while the long term rate is based on issues of ten years or longer in maturity 5 to calculate unstated interest paid sellers of goods paid for on installment should choose the applicable federal rate based on the length of the installment contract 2 example of unstated interest paidlet s say that ernie s tractor supply company sells a tractor to a customer for 10 000 and allows the customer to pay for the tractor in installments 5 000 in six months from now and another 5 000 one year from now on the customer contract for this installment plan there is no amount that is stipulated for interest paid for tax purposes you may need to recognize that this arrangement involves the implicit lending of the customer two 5 000 loans one with a maturity of six months and the other for one year if the applicable federal rate for this loan is 2 per year then the interest you would pay on the two 5 000 loans would end up being roughly 150 dollars the irs would assume that you have sold the tractor for 9 850 and issued two loans that paid interest income of 150 | |
what is an unsterilized foreign exchange intervention | the term unsterilized foreign exchange intervention refers to how a country s monetary authorities influence exchange rates and its money supply by not purchasing foreign or by not selling domestic currencies or assets this kind of approach is considered passive to exchange rate fluctuations allowing for fluctuations in the monetary base unsterilized foreign exchange interventions are also called nonsterilized interventions and can be contrasted with sterilized interventions | |
how unsterilized foreign exchange interventions work | central banks may be able to weaken a currency by selling their own reserves on the market they can also strengthen it by buying more and selling their own currency sterilization happens when authorities offset the purchase of foreign currencies or securities by selling domestic ones therefore dropping its own money supply central banks use sterilization as a way to insulate or protect their economies against any negative impact from things like currency appreciation or inflation both of which can reduce a country s place in export competitiveness in the global market sterilization can be used to insulate or protect economies against any negative impact from currency appreciation or inflation | |
when central banks implement unsterilized foreign exchange intervention they do not put insulation measures in place therefore the transaction is one sided only purchasing or selling currencies or assets without being offset the policy allows foreign exchange markets to function without manipulating the supply of the domestic currency this means that a country s monetary base is allowed to change | for example the federal reserve may decide to strengthen the japanese yen by buying japanese government bonds increasing its own reserves of the foreign country s assets the intervention is unsterilized if the fed decides not to sell its own bonds in reserves on the open market unsterilized vs sterilized foreign exchange interventionsas noted above central bank authorities use sterilized and nonsterilized methods of foreign exchange intervention when and if they want to influence exchange rates and or the money supply if the central bank purchases domestic currency by selling foreign assets the money supply shrinks because it has removed domestic currency from the market this is an example of a sterilized policy if a currency s value starts to weaken in the global market that country s central bank can step in and try to influence the exchange rate by creating demand for the currency the bank can buy its own currency by using foreign currency that it has in its own reserves this not only cuts off the currency s depreciation but also controls the money supply by reducing the amount in circulation the same is true if the central bank decides to do the opposite by selling its own currency if it appreciates too much | |
what is unsubordinated debt | unsubordinated debt also known as a senior security or senior debt refers to a type of obligation that must be repaid before any other form of debt so holders of unsubordinated debt have the first claim over a company s assets or earnings if the debtor goes bankrupt or insolvent because unsubordinated debt comes with a guarantee of repayment they are considered less risky than other types of debt | |
when a company goes bankrupt or insolvent there is normally a chain or ranking of creditors who get paid in a specific order lenders of unsubordinated debt get paid out in full first by the company the majority of this type of debt is usually secured by collateral | most loans from financial institutions and certain high grade debt securities such as mortgage bonds are deemed senior debt loans are also considered unsubordinated based on the balance and the length of time outstanding in comparison with other loans because senior debt has a relatively secure claim it is considered to be less risky as such it pays a lower rate of interest compared to other types of debt this means lenders are willing to compensate for lower borrowing rates by claiming a higher priority over a borrower s assets since they will be repaid first during a liquidation event because they come with some security unsubordinated debt lenders normally charge lower interest rates to their debtors after unsubordinated debt lenders are paid any remaining money goes to preferred stock holders subordinated debt followed by common shareholders types of unsubordinated debtexamples of unsubordinated debt include exchange traded notes etns collateralized securities and certificates of deposit cds collateralized securities such as mortgage backed securities mbs are structured with a number of tranches that bear different risks interest rates and maturities tranches with a higher claim on underlying assets are safer than junior tranches with a second lien senior tranches also have a higher credit rating than junior tranches and are paid first unsubordinated vs subordinated debtunsubordinated debt is the opposite of subordinated debt this type of debt vehicle is ranked below all senior debts of a company subordinated debt is also called junior debt and is subject to subordination in the event of default or bankruptcy | |
when a company s assets are liquidated to pay off its debt obligations subordinated debt holders receive payment after all unsubordinated debt lenders and preferred stockholders are paid in some cases there is no cash left after paying the unsubordinated lenders which means every other creditor remains unpaid | because there is more risk associated with subordinated debt these lenders normally charge higher interest rates compared to unsubordinated debt | |
what is unsubscribed | the term unsubscribed refers to any shares that are part of an initial public offering ipo that are not purchased ahead of the official release date this means there is little to no interest in the security in advance of the company s ipo put simply being unsubscribed means that demand for shares is low analysts and investors may safely assume that ipos that become subscribed are overpriced being unsubscribed may prevent companies from raising the capital they need to meet their goals understanding unsubscribedprivate companies go through the ipo process when they want to go public doing so allows them to go to the market and sell shares in order to raise money for their day to day operations and growth plans an ipo subscription refers to an order placed by an investor usually an institutional investor for newly issued securities before they are officially issued these shares are issued directly by the company rather than through a broker on the secondary market unsubscribed shares refer to the portion of any stock that remains unsold before the ipo this means that demand for company stock is low and is outweighed by the overall supply as noted above it is often a sign that the company and its underwriters have priced the ipo share price too high companies that go through the ipo process generally have a target in mind as to how much capital they intend to raise from the offering being unsubscribed means that they won t be able to raise the capital they initially hoped as such it may lead to a disruption in their day to day operations or growth plans to an individual investor or analyst the lack of interest may be taken as a sign that an ipo is going to be a flop unsubscribed shares may rise or fall according to the whims of the open market they can then be purchased or sold only among investors on the secondary market primarily through the public stock exchanges or by using a broker in unsubscribed ipos which may also be called undersubscribed the issuing company may recall the shares and reimburse the few buyers who expressed interest this is in contrast to an oversubscribed ipo in which investor demand far outweighs the supply of shares available the underwriters responsible for an oversubscribed offering can adjust the price or offer more shares to meet the demand preparing for an ipoa company s ipo is typically underwritten by an investment bank this institution tries to determine the offering price that will result in an optimal number of subscriptions setting an offering price that s too high will likely result in the shares being unsubscribed as such the size of the unsubscribed portion of the ipo can affect the overall price of an entire lot of shares the issuing company in the ipo may require an underwriter to buy the unsubscribed portion reasons for unsubscribed sharesas mentioned earlier the primary reason is often due to the fact that the ipo share price is set far too high but there are other reasons why an ipo may be unsubscribed some of these include other funding optionssuccessful ipos subscribed and oversubscribed ones are those that raise a lot of capital this helps keep the business afloat while allowing it to fund its operations and growth strategies but what happens when an ipo becomes unsubscribed and fails companies may have to find other ways to raise money some of these options include example of unsubscribedhere s a hypothetical example to show how unsubscribed shares work let s say that company x is about to go public and wants to issue an ipo of eight million shares its investment bank underwrites the ipo prepares documents detailing the company s business model and financial outlook and then shops this information to potential buyers to see if they will subscribe to the offering or agree to buy shares of it prior to its release most of these potential buyers are institutional investors or other large scale buyers once the underwriting bank gauges the level of interest it will decide how many shares to sell and at what price but let s assume that the underwriting bank finds buyers for seven million of company x s eight million shares and it agrees to sell those shares for 20 apiece one million of the shares remain unsubscribed company x may not earn as much from its ipo as it had hoped to earn | |
what is the purpose of an initial public offering | an initial public offering allows companies to go to the market to raise money by issuing shares to investors by selling shares the company agrees to cede ownership to shareholders in exchange for the capital the money raised by selling shares allows the business to remain operating and fund its growth plans the company may also be able to delay having to assume more debt to keep itself afloat | |
what is an oversubscribed ipo | an oversubscribed ipo is the opposite of an undersubscribed one this means that the ipo has a lot of interest from investors as such demand far outweighs the available supply of shares underwriters can make changes to the offer price or they can increase the number of shares in order to meet demand who buys unsubscribed shares | |
how do ipo underwriters get paid | the issuing company selects an underwriting bank that works for its interests other institutions may be required depending on the size and nature of the ipo the original underwriter becomes the lead and forms a syndicate underwriters are generally guaranteed a fee for their services the lead receives a portion of the gross spread which is fixed as a percentage of the ipo proceeds the remaining portion is split between the remaining underwriters the company may also agree to cover other costs including out of pocket expenses incurred by the underwriter s during the process | |
what is an unsuitable investment unsuitability | an unsuitable investment is when an investment such as a stock or bond does not meet the objectives and means of an investor the investment strategy may also be unsuitable for example the portfolio asset mix could be wrong or the investments purchased may be too aggressive or too low risk for what the client needs or wants in most parts of the world financial professionals have a duty to take steps that ensure an investment is suitable for a client in the united states these rules are enforced by the financial industry regulatory authority finra suitability is not the same as a fiduciary responsibility 1understanding an unsuitable investment unsuitability unsuitable investments vary between market participants no investment other than outright scams are inherently suitable or unsuitable suitability depends on the investor s situation and will vary between investors based on their characteristics and goals in order to ensure that suitable investments are offered finra rules require investment firms to seek information about a customer s age other investments financial situation and needs tax status investment objectives investment experience investment time horizon liquidity needs and risk tolerance 1 customers are not required to provide this information so there is some flexibility if they do not having this information helps firms avoid offering unsuitable investments to a customer for example for an 85 year old widow living on fixed income speculative investments such as options futures and penny stocks may be unsuitable because the widow has a low risk tolerance she is using the capital in her investments accounts along with the returns to live she and her investment advisor would likely be unwilling to put her capital at excessive risk as there is minimal time left on her investment horizon to recoup losses should they occur on the other hand a person in their twenties or thirties may be willing to take on more risk they are still working and do not yet require their investments to live off more risk could result in higher returns over the long run and the longer investment horizon means they have time to recoup any short term losses which may occur very low risk investments may be unsuitable for this investor age is not the only factor when determining which investments are unsuitable income expected future income financial knowledge lifestyle and personal preferences are a few of the other factors that must also be considered for example some people just prefer to play it safe while others are risk takers the sleep test is a simple concept that helps in this regard if an investor can t sleep because of their investments something is wrong alter the risk level until comfortable risk is then combined and counterbalanced with the other factors to find suitable investments or to create the proper investment strategy fiduciary responsibilitysuitability and unsuitability are not the same as fiduciary responsibility they are essentially different levels of client care with fiduciary responsibility being the stricter protocol a fee based investment adviser has a fiduciary responsibility to find investments and investment strategies that are suitable for their client a commission based financial advisor or broker maybe that you get on the phone at your broker s call center typically doesn t have a fiduciary responsibility to a client but they will still seek out suitable investments | |
what is an unsuitable investment unsuitability | an unsuitable investment is when an investment such as a stock or bond does not meet the objectives and means of an investor the investment strategy may also be unsuitable for example the portfolio asset mix could be wrong or the investments purchased may be too aggressive or too low risk for what the client needs or wants in most parts of the world financial professionals have a duty to take steps that ensure an investment is suitable for a client in the united states these rules are enforced by the financial industry regulatory authority finra suitability is not the same as a fiduciary responsibility 1understanding an unsuitable investment unsuitability unsuitable investments vary between market participants no investment other than outright scams are inherently suitable or unsuitable suitability depends on the investor s situation and will vary between investors based on their characteristics and goals in order to ensure that suitable investments are offered finra rules require investment firms to seek information about a customer s age other investments financial situation and needs tax status investment objectives investment experience investment time horizon liquidity needs and risk tolerance 1 customers are not required to provide this information so there is some flexibility if they do not having this information helps firms avoid offering unsuitable investments to a customer for example for an 85 year old widow living on fixed income speculative investments such as options futures and penny stocks may be unsuitable because the widow has a low risk tolerance she is using the capital in her investments accounts along with the returns to live she and her investment advisor would likely be unwilling to put her capital at excessive risk as there is minimal time left on her investment horizon to recoup losses should they occur on the other hand a person in their twenties or thirties may be willing to take on more risk they are still working and do not yet require their investments to live off more risk could result in higher returns over the long run and the longer investment horizon means they have time to recoup any short term losses which may occur very low risk investments may be unsuitable for this investor age is not the only factor when determining which investments are unsuitable income expected future income financial knowledge lifestyle and personal preferences are a few of the other factors that must also be considered for example some people just prefer to play it safe while others are risk takers the sleep test is a simple concept that helps in this regard if an investor can t sleep because of their investments something is wrong alter the risk level until comfortable risk is then combined and counterbalanced with the other factors to find suitable investments or to create the proper investment strategy fiduciary responsibilitysuitability and unsuitability are not the same as fiduciary responsibility they are essentially different levels of client care with fiduciary responsibility being the stricter protocol a fee based investment adviser has a fiduciary responsibility to find investments and investment strategies that are suitable for their client a commission based financial advisor or broker maybe that you get on the phone at your broker s call center typically doesn t have a fiduciary responsibility to a client but they will still seek out suitable investments | |
what is an unusual item | an unusual item is a nonrecurring or one time gain or loss that is not considered part of normal business operations unusual gains or losses may be recorded on the income statement as a separate component of income from continuing operations or alternatively may be identified in the footnotes to the financial statements or the management discussion and analysis md a section of the annual report understanding unusual itemsreporting unusual items separately is important to ensure the transparency of financial reporting because unusual items are unlikely to recur separating these items either explicitly on an income statement or in the management discussion and analysis md a or footnotes allows investors to better assess the income generating capacity of the core business activities unusual items may include the financial accounting standards board fasb the independent nonprofit organization responsible for issuing generally accepted accounting principles gaap has given management leeway to provide a more descriptive separate line item on the income statement when appropriate such as loss from hurricane damages to office building special considerationsthe treatment of unusual items has several implications related to the analysis of company performance and valuation of its shares credit agreements and executive compensation schemes an analyst would have to make adjustments to the income statement to produce a clean ebit ebitda and net income figures on which to calculate price multiples debt agreements would have to specify the exclusions to how certain covenants are calculated executive pay plans too would need to explain how unusual items are handled in compensation formulas | |
what is an unweighted index | an unweighted index is comprised of securities with equal weight within the index an equivalent dollar amount is invested in each of the index components for an unweighted stock index one stock s performance will not have a dramatic effect on the performance of the index as a whole this differs from weighted indexes where some stocks are given more percentage weight than others usually based on their market capitalizations understanding unweighted indexesunweighted indexes are rare as most indexes are based on market capitalizations whereby companies with larger market caps are accorded higher index weights than companies with lower market caps the most prominent of the unweighted stock indexes is the s p 500 equal weight index ewi which is the unweighted version of the widely used s p 500 index the s p 500 ewi includes the same constituents as the capitalization weighted s p 500 index but each of the 500 companies is allocated a fixed percentage weight of 0 2 1implications for index funds and etfspassive fund managers construct index funds or exchange traded funds etfs based on leading indexes such as the s p 500 index which is a weighted index 2 most choose to mimic their investment vehicles on market capitalization weighted indexes which means they must buy more of the stocks that are rising in value to match the index or sell more of the stocks that are declining in value this can create a circular situation of momentum where an increase in a stock s value leads to more buying of the stock which will add to the upward pressure on the price the reverse is also true on the downside an index fund or etf structured on an unweighted index on the other hand sticks to equal allocations among the components of an index in the case of the s p 500 equal weight index the fund manager would periodically rebalance investment amounts so that each is 0 2 of the total 1 | |
is unweighted or weighted better | one type of index isn t necessarily better than another they are just showing different things the weighted index shows performance typically by market capitalization while the unweighted index reflects unweighted performance across the index s components one of the pitfalls of a weighted index is that returns will be based largely on the most heavily weighted components and the smaller component returns may be hidden or have little effect this could mean that most of the stocks in the s p 500 for example are actually declining even though the index is rising because the stocks with the most weight are rising while most of the stocks with little weight are falling the flip side of this argument is that smaller companies come and go and therefore they shouldn t be given as much weight as the large companies with a much larger shareholder base an unweighted or equal weight index reflects how a whole pool of stocks is doing it may be a better index for an investor who isn t investing in the most heavily weighted stocks of a weighted index or is more interested in whether most stocks are moving higher or lower the unweighted index does a better job of showing this than a weighted index in terms of performance sometimes an unweighted index outperforms the weighted index and other times the reverse is true when deciding which is a better index to track or mimic look at the performance and volatility of both to assess which is the better option real world example of weighted and unweightedthe nasdaq 100 index is one hundred of the largest companies listed on the nasdaq exchange it is a weighted index based on market capitalization although the index caps how much of a weight any individual stock can have 3the nasdaq 100 equal weight index has an equal weight of 1 assigned to each of the 100 components 4over time the weightings can have dramatic effects on returns the following chart shows the nasdaq 100 ewi as candles and the nasdaq 100 as a pink line between 2006 and 2019 the nasdaq 100 returned 70 more than its ewi counterpart showing that the larger cap stocks tended to bolster returns for the weighted index this may not always be the case depending on the index sometimes the unweighted version outperforms the weighted version image by sabrina jiang investopedia 2021along the bottom of the chart is a correlation coefficient showing that most of the time the two indexes are highly correlated near a value of one but on occasion the two indexes diverge or may not move in the same direction these are periods where how the index is weighted affects its performance relative to the other | |
what is unwinding a position | to unwind is to close out a trading position with the term tending to be used when the trade is complex or large unwinding also refers to the correction of a trading error since correcting a trading error may be complex or require multiple steps or trades for example a broker mistakenly sells part of a position when an investor wanted to add to it the broker would have to unwind the transaction by first buying the sold shares and then purchasing the shares that should have been purchased in the first place | |
how unwinding works | unwinding is used to refer to the closing trades that require multiple steps trades or time if an investor takes a long position in stocks while at the same time selling puts on the same issue they will need to unwind those trades at some point this entails covering the options and selling the underlying stock a similar process would be followed by a broker attempting to correct a buying or selling error unwinding is a process of reversing or closing a trade by participating in an offsetting transaction closing a positionclosing a position is the process required to eliminate a particular investment from a portfolio in the case of securities when an investor wants to close the position the most common action is to sell the security in the case of shorts an investor would need to buy the short shares back to close the position the term unwinding is more likely to be used when buying or selling occurs over multiple transactions and not just one unwinding is a process unwinding to correct trade errorsif a broker accidentally performs an incorrect action with an investor s funds such as buying more of a particular security when the instruction was to sell it the broker must resell the security that was accidentally purchased to correct the error they must then make the original sale requested if the broker experiences a loss during this error correction process the broker is responsible for the difference not the investor other activities that can be considered a trade error include buying or selling a security other than the one specified buying or selling the incorrect quantity of a security or trading in prohibited securities errors that are caught prior to being fully processed and that are successfully canceled do not require unwinding unwinding and liquidity riskliquidity risk can have negative effects on an investor s or a broker s ability to unwind a transaction liquidity refers to the ease at which a particular asset can be bought or sold if an asset is less liquid it is more challenging to find an appropriate buyer or seller so the liquidity risk is elevated regardless of whether a transaction was completed intentionally or accidentally all risks associated with the particular security still apply when attempting to unwind it | |
what is an up and in option | up and in options are a type of exotic option that is often made available through specialized brokers to high end clients in the over the counter otc markets the option features both a strike price and a barrier level as the name suggests the buyer of the option will benefit once the price of the underlying rises high enough to reach knock in the designated barrier price level otherwise the option will expire worthless | |
how an up and in option works | up and in options are a type of exotic option known as a barrier option as an exotic option barrier options are structured with more complex terms than standard plain vanilla options barrier options can be of two varieties either a knock in option or a knock out option the option pays out differently depending on the variety barrier options may also include a rebate provision for the holder if the option cannot be exercised because exotic options are often available in otc markets there is a fair amount of variation in how these options may be offered depending on the liquidity of the underlying which may be forex or stocks some options may be offered in a bespoke manner these kinds of options are also rarely available to most retail investors here is how the payouts vary between the two varieties knock in optionsknock in options can be either up and in or down and in this implies whether the price will rise or fall to meet the barrier price level the barrier price when crossed makes the option available for exercise an up and in option will give the holder the right to exercise when the barrier price level is reached or exceeded depending on the structuring in a down and in option the holder gets the right to exercise when the underlying asset s price falls to or below a certain barrier level barrier options are structured with either puts or calls an up and in call option allows an investor to benefit when a price is rising a down and in uses a put option and allows an investor to benefit when a price is falling knock out optionsknock out options are the opposite of knock in options these products make the option defective when a price is reached but viable so long as the barrier price is not reached knock out options can be either up and out or down and out with an up and out option the product becomes defective when a price is reached or exceeded and with a down and out option the product becomes defective when a price falls to or below its barrier level rebate barrier optionsboth knock in and knock out options can include a rebate provision these options will be known as rebate barrier options in a rebate barrier option the holder receives a rebate when the option is non exercisable at expiration barrier option provisionsbarrier options can be structured in various ways these options are american options with a flexible exercise date some options may become effective or defective when a specific barrier price is reached while others require the security s value to move through the price before their provisions are enacted barrier options can also include modified touch provisions some barrier options may include one touch while others require multiple touches barrier options can also be structured to include provisions for two or more barriers investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal | |
what is an up and out option | an up and out option is a type of knock out barrier option that ceases to exist when the price of the underlying security rises above a specific price level called the barrier price if the price of the underlying does not rise above the barrier level the option acts like any other option it gives the holder the right but not the obligation to exercise their call or put option at the strike price on or before the expiration date specified in the contract understanding up and out optionsconsidered an exotic option an up and out option is one of two types of knock out barrier options the other type of knock out barrier option is a down and out option both kinds come in put and call varieties a barrier option is a type of option where the payoff and the very existence of the option depends on whether or not the underlying asset reaches a predetermined price a knock out will expire worthless if the underlying reaches a certain price limiting profits for the holder and limiting losses for the writer the critical concept for a knock out option is that if the underlying asset reaches the barrier at any time during the option s life the option is knocked out and will not come back into existence it does not matter if the underlying moves back below pre knock out levels for example an up and out option has a strike price of 80 and a knock out price of 100 at the option s inception the price of the stock was 75 but before the option was exercisable the price of the stock reached 100 this valuation means the option automatically expires worthless because it hit or exceeded the barrier level it does not matter where the underlying trades before the exercise date a barrier option can alternatively be constructed as a knock in in contrast to knock outs a knock in option has no value until the underlying reaches a certain price up and outs can also be compared with down and out options with a down and out option if the underlying falls below the barrier price the option ceases to exist an up and out option can be a call or put both get knocked out if the underlying rises above the barrier price using up and out optionslarge institutions or market markers create these options via direct agreements with clients seeking them for example a portfolio manager can use them as a less expensive method to hedge against losses on a short position the hedge would be less costly than buying vanilla call options however it would be an imperfect hedge because the buyer would be unprotected if the security price increased above the barrier price pricing still depends on all the regular options metrics the knock out feature adding an extra dimension since options trade over the counter there is typically limited liquidity for such instruments this means the buyer will need to accept the premium cost offered to them or else attempt to negotiate a better price with the seller vanilla option premiums can provide a baseline estimate to work off of typically an up and out call option should have a lower premium than a vanilla call option with the same expiration and strike example of an up and out optionas an example assume that an institutional investor is interested in buying calls on apple inc aapl because they believe the price will rise they need to buy 100 contracts so they want to keep the cost as low as possible they consider buying an up and out option since they tend to be cheaper than similar vanilla calls say that apple stock is trading at 200 the investor believes the price will rise above 200 over the next three months but probably won t rise above 240 they decide to buy an at the money up and out option with a strike price of 200 an expiration in three months and a knock out level of 240 a vanilla option expiring in three months with a 200 strike is trading for 11 80 or 1 180 per contract which includes 100 shares the investor needs to buy 100 contracts for a total cost of 118 000 they have received a quote that an investment bank will offer them the up and out for 8 80 for a total cost of 88 000 8 80 x 100 shares x 100 contracts this saves the firm 30 000 on premium costs the investor s breakeven is 200 plus the cost of the option 8 80 or 208 80 apple stock needs to move above 208 80 within the next three months in order for the investor to cover the cost of the options they make money if the price of apple trades above 208 80 but also remains below 240 if at any time before expiration the price of apple stock touches 240 the options cease to exist and the investor loses the premium they paid 88 000 | |
what is up down gap side by side white lines | the up down gap side by side white lines is a three candle continuation pattern that occurs on candlestick charts understanding up down gap side by side white linesthe up version is a large up white or green candle followed by a gap and then two more white candles of similar size to each other the down version is a large down black or red candle followed by two white candles of similar size when the pattern occurs which is rare it is expected that the price will continue moving in the current trend direction down or up as the case may be the up gap side by side white lines is a bullish continuation pattern with the following characteristics the down gap side by side white lines is a bearish continuation pattern with the following characteristics the side by side white lines pattern is moderately accurate in predicting a continuation of the current trend but it is somewhat uncommon a continuation occurs 66 of the time the pattern doesn t always produce large price moves a little over 60 of the patterns produced a 6 average move in 10 days and those patterns occurred in downtrends with a downside breakout from the pattern downtrend continuation patterns occurring in other contexts didn t have price moves as large according to thomas bulkowski s candlestick research other chart patterns or technical indicators should be used to confirm the candlestick pattern to maximize the odds of success many traders opt to wait for confirmation from the pattern confirmation is price movement that confirms the expectation of the pattern for example following an up gap side by side white lines pattern a trader may wait for the price to move above the highs of the pattern before initiating a long position a stop loss could then be placed below the low of the second or third candle or even the first candle in order to give the trade more room the difference between up down gap side by side white lines and a three outside up down candlestick pattern is that unlike the former pattern the latter is a reversal pattern not a continuation pattern in the outside up pattern a black candlestick is followed by two white candles in the outside down pattern a white candle is followed by two black candles up down gap side by side white lines psychologyup gap side by side white lines examplethe apple inc aapl daily chart shows an example of the up gap version of the candlestick pattern image by sabrina jiang investopedia 2021coming off a swing low the price has a large up candle followed by a gap and then two additional side by side up candles the next day fourth candle the price continued to rally moving above the high of candles two and three this provided confirmation that the uptrend was continuing the rally lasted a few more days before drifting sideways up down gap side by side white lines limitationsinvestopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal | |
what is up front mortgage insurance ufmi | up front mortgage insurance is an insurance premium that is collected typically on federal housing administration fha loans at the time the loan is initially made though similar it is not quite the same as private mortgage insurance pmi which is collected by a conventional private mortgage lender each month when a buyer s down payment on a home is less than 20 of the purchase price up front mortgage premiums are added to a pool of money that is used to help entities such as the fha insure loans for certain borrowers understanding up front mortgage insurance ufmi like pmi the purpose of fha mortgage insurance is to protect the lender when borrowers have minimal equity in their homes the risk to the lender that the borrower will default is higher because the borrower doesn t have as much to lose by walking away and letting the bank foreclose with mortgage insurance if you stop making your mortgage payments and walk away from your home the insurer will help your lender recoup its losses fha loans have lower down payment requirements as low as 3 5 of a home s price tag and less stringent income and credit requirements than conventional loans 1 so these loans require the payment of up front mortgage insurance which is collected at the time of closing since 2015 the rate for up front mortgage insurance has been 1 75 of the base loan price fha streamline refinance loans are charged a ufmip of 0 55 2 you have the option to pay this amount in cash when you close your loan but most people choose to roll it into their total mortgage amount if you can afford to pay the amount of up front mortgage insurance ufmi at the outset it s a good idea to do so if you decide to roll it into your loan it will be a lot more expensive in the long run in addition to the ufmi borrowers have to pay ongoing mortgage insurance premiums mip which range from 0 45 to 1 05 of the total mortgage 2 you ll have to pay this mortgage insurance until your loan to value ratio is low enough that is until you have paid off a certain amount of your mortgage when your equity is high enough in the case of an fha loan the percentage is 22 there is less risk for the lender should you walk away from the loan 3 at this time the insurance is no longer required those with loans greater than 15 years are required to make monthly mortgage insurance payments for five years if your mortgage is shorter than 15 years then the only requirement is the 78 loan to value ratio up front mortgage insurance premium payments are submitted directly to the u s department of housing and urban development hud and collected by the u s department of the treasury s automated collection service they go into an escrow account 4hud uses a secure internet collection portal to process collections electronically this automated collection service special considerationsmany people do not realize that premiums for up front mortgage insurance can usually be refunded on a pro rated basis if they paid it all at once and then sell their home within the first five to seven years of ownership in other words they may be entitled to a substantial refund even years after the fact if a homeowner received their fha loan before june 2013 they are eligible for a refund and cancelation of their up front mortgage insurance premium after five years a homeowner must have 22 equity in the property and all payments must have been made on time 5 homeowners with fha loans issued after june 2013 must refinance into a conventional loan and have a current loan to value of at 80 or more there are a few ways home buyers can avoid paying upfront mortgage insurance | |
is ufmi refundable | the upfront mortgage insurance usmi premium is not refundable except when in connection with refinancing to a new fha insured mortgage within three years of the original loan 6 | |
how is the fha ufmi premium calculated | the ufmi premium the fha requires on a mortgage is 1 75 of the loan amount so if the initial loan is 200 000 1 75 of that amount would be 3 500 the mortgage amount would thus become 203 500 with the ufmi premium included can the ufmi be paid in cash or can it be financed into the loan payments the ufmi premium can be paid either in cash or financed into the loan but must be entirely paid in one way the other not split any ufmip amounts paid in cash are added to the total cash settlement requirements | |
what is the up market capture ratio | the up market capture ratio is the statistical measure of an investment manager s overall performance in up markets it is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen the up market capture ratio can be compared with the down market capture ratio in practice both measures are used in tandem calculating the up market capture ratiothe up market capture ratio is calculated by dividing the manager s returns by the returns of the index during the up market and multiplying that factor by 100 up down mcr mr ir 100 where mcr market capture ratio mr manager s returns ir index returns begin aligned frac text up text down text mcr frac text mr text ir times 100 textbf where text mcr text market capture ratio text mr text manager s returns text ir text index returns end aligned downup mcr irmr 100where mcr market capture ratiomr manager s returnsir index returns understanding the up market capture ratioan investment manager who has an up market ratio greater than 100 has outperformed the index during the up market for example an up market capture ratio of 120 indicates that the manager outperformed the market by 20 during the specified period many analysts use this simple calculation in their broader assessments of individual investment managers if an investment mandate calls for an investment manager to meet or exceed a benchmark index s rate of return the up market capture ratio is helpful for spotting those managers who are doing so this is important to investors who use an active investment strategy and consider relative returns rather than absolute returns as hedge funds often seek special considerationsthe up market capture ratio is just one of many indicators used by analysts to find good money managers because the ratio focuses on upside movements and doesn t account for downside losses moves some critics offer compelling evidence that it encourages managers to shoot for the moon but when combined with complementary performance indicators the up market capture ratio does present valuable investment insight | |
when evaluating an investment manager it is best to consider the down market capture ratio too this ratio is calculated in the same way except using down market returns once both measures are known a comparison may reveal that a manager with a large down market ratio or poor up market ratio still outperforms the market | the market capture ratios of passive index funds should be very close to 100 example of how to use the up market capture ratioif the down market ratio is 110 but the up market ratio is 140 then the manager has been able to compensate for the poor down market performance with strong up market performance you can quantify this by dividing the up market ratio by the down market ratio to get the overall capture ratio in our example dividing 140 by 110 gives an overall capture ratio of 1 27 indicating the up market performance more than offsets the down market performance the same is true if the manager performs better in down markets than up markets if the up market ratio is only 90 but the down market ratio is 70 then the overall capture ratio is 1 29 indicating that the manager is outperforming the market overall | |
what is up volume | up volume generally refers to an increase in the volume of shares traded in either a market or security that leads to an increase in value up volume can be contrasted with down volume understanding up volumeup volume occurs in bullish markets when security prices are rising with increased volume in the market up volume may also be referred to as up on volume overall volume can be influenced by a number of factors and may have various effects on an up volume trading day an index s value would trade higher in conjunction with an increase in its trading volume the same concept occurs in a single security for example an up volume stock day for a single stock would show a price trading higher and ultimately closing higher than the previous day s close volume is the total number of shares that are transacted volume can be influenced by a number of factors and is typically higher following the release of public information about a security noise traders tend to be significant contributors to high volume trades for example a company s stock may be rising on a release of good news if the news was unanticipated it can boost trading from both institutional and retail investors as the price gains noise traders will contribute to high volume trading days since they follow trends and trade heavily on sentiment most technical analysts and institutional investors when watching a stock for possible investment will follow its volume a spike in volume is typically caused by a significant market catalyst that merits attention many technical analysts believe that volume can also be a signal of a price breakout in a bullish or bearish direction pvi and nvithe positive and negative volume indexes pvi and nvi were first developed by paul dysart in the 1930s to help investors discern some of the effects of market trading volume pvi and nvi then became more popular in the 1970s after the calculations were expanded to individual securities pvi if current volume is greater than the previous day s volume pvi previous pvi today s closing price yesterday s closing price yesterday s closing price x previous pvi if current volume is lower than the previous day s volume pvi is unchanged nvi if current volume is less than the previous day s volume nvi previous nvi today s closing price yesterday s closing price yesterday s closing price x previous nvi if current volume is higher than the previous day s volume nvi is unchanged these index values provide insight on how prices are fluctuating with trading volume in an up volume trend pvi would trend higher as volume increased thus investors seeking to profit on bullish up volume trading could use the pvi as one indicator for potential price signals | |
what is upfront pricing | upfront pricing refers to the interest rates fees and certain other terms in a credit card issuer s initial agreement with a cardholder in the united states credit card issuers are required by law to make these disclosures and also subject to regulations governing when and how they can change the terms of the agreement | |
how upfront pricing works | credit card issuers set interest rates fees and credit limits for each cardholder through a largely automated process called underwriting underwriting attempts to assess how much risk a card applicant poses based on their credit score their debt to income ratio and other factors a typical credit card might come with a range of possible interest rates with riskier customers assigned rates toward the high end and less risky ones paying lower rates some applicants may be rejected altogether for a particular card based on the underwriting process this is often referred to as a risk based pricing model and it is used not only with credit cards but with other types of lending such as car loans and home mortgages under the equal credit opportunity act card issuers are prohibited from considering an applicant s age gender identity sexual orientation marital status race color religion or national origin in deciding whether to grant them credit and in setting the terms for it 1upfront pricing and consumer protectionssince the passage of the credit card accountability responsibility and disclosure act of 2009 also known as the card act credit card issuers in the u s have had to follow a more uniform set of rules the act s stated goal was to establish fair and transparent practices related to the extension of credit and it laid out a number of provisions covering both the underwriting process and pricing 2for example credit card issuers once had a relatively free hand in raising the interest rates they d initially established when a cardholder opened their account often resorting to such tactics as hair trigger repricing that allowed them to impose a higher penalty apr on the account balance if the cardholder was even a day late with their monthly payment 3 in fact cardholders could even be subject to a penalty interest rate if they were late on an entirely different credit account a situation known as universal default 4the card act largely reined that in prior to enactment of the card act the consumer financial protection bureau has noted the ability of issuers to reprice existing accounts and balances allowed issuers to correct pricing if their initial assessment of risk proved incorrect at the same time because issuers were free to reprice it was not necessary to set interest rates based upon the issuers upfront assessment of risk 5for example under the card act issuers generally can t change the interest rate on a card during the first year that the account is open except in certain limited circumstances such as a rise in the index that a variable rate card is coupled to or the end of a low or no interest promotional period they must generally provide 45 days notice if they intend to change the interest rate on future transactions and can only raise the rate on existing balances if the cardholder has missed two consecutive monthly payments and again they must provide 45 days notice 6 in theory at least the 45 day period gives the cardholder some time to shop around for a card with better terms as a result of these changes consumers can count on a card issuer s upfront pricing to provide a more accurate picture of how much the card will cost them at least for a longer period of time than before and credit card issuers have to be more conscientious in their underwriting practices since current laws make it more difficult to attempt a do over if they find they misjudged an applicant s credit risk can a credit card issuer change your credit limit yes credit card issuers have a lot of flexibility in raising or lowering the credit limit on a customer s card if they decide to lower it they are generally required to provide the cardholder with a notice of adverse action according to the consumer financial protection bureau this notice should either provide specific reasons for the action taken or allow you to request a statement of specific reasons 7 the credit card issuer might also decide to raise your credit limit after a period of time if you ve proven to be a good customer this can happen automatically as issuers periodically review their existing accounts you can also request a higher credit limit on your own sometimes simply by filling out an online form you re most likely to be approved by the issuer if you ve consistently paid your bills on time and your income or credit score has risen since you first applied for the card 8 | |
are credit card application fees regulated by law | yes according to the federal reserve board application fees cannot total more than 25 of the initial credit limit for example if your initial credit limit is 500 the fees for the first year cannot be more than 125 this limit also applies to annual credit card fees 9 | |
where can you see your credit card agreement | if you ve lost track of the credit card agreement you received you can get another copy by contacting your card issuer which is required by law to provide you with one on request 10the bottom lineupfront pricing tells you the interest rate and fees you ll have to pay to use a particular credit card those terms can change over time but the law requires that the card issuer give you adequate advance notice to avoid unpleasant surprises | |
what is an upgrade | an upgrade refers to the positive change in an analyst s outlook of a particular security s valuation based primarily on that security s improving fundamentals understanding an upgradean upgrade to a specific security assigns it a higher ranking and is usually triggered by qualitative and quantitative information that contributes to an increase in the financial valuation of that security in the context of portfolio management the term upgrade also refers to a strategy whereby the risk profile and quality of the portfolio are improved by including blue chips in it while eliminating speculative stocks upgrades to investment ratings for stocks and fixed income securities are issued by equity and bond analysts at their respective brokerage houses upgrades to the credit rating of corporate issuers of debt securities are issued by rating agencies such as standard poor s for example a rating agency may upgrade the credit rating of an issuer from aa to aaa such a move would have a positive effect on all outstanding bonds and other fixed income instruments of the issuer example of an equity upgradean example of an equity upgrade would be an analyst raising the investment rating for a particular stock or sector to buy from hold an upgrade of this nature would sometimes be accompanied by an upward revision in the analyst s target price for the stock for equity and debt securities an upgrade generally leads to positive press behind the scenes the biggest benefit to an upgrade is a lower cost of capital for both debt and equity a lower cost of capital translates into a lower discount rate which leads to a higher valuation and firm valuation similar to how an individual might be able to borrow at a cheaper interest rate after a credit score upgrade businesses can access the capital markets more often and at cheaper rates after a positive upgrade event beyond an outright upgrade event credit rating agencies and equity valuation shops both publish watchlist or similar lists indicating securities or companies prime for an upgrade or downgrade investors and creditors alike keep a close eye on potential directional changes to a security or business prospect | |
what is uphold | the term uphold refers to a cloud based financial service platform the service enables individuals to securely move convert hold and transact in various assets including fiat currencies cryptocurrencies equities and precious metals users can fund their accounts from credit or debit cards bank accounts or cryptocurrency networks they can also easily move funds from one form of value to another uphold is meant to reduce the transaction costs and fees associated with currency exchange | |
how uphold works | uphold is a digital money platform offering financial services to a global market it was founded in 2014 by halsey minor and officially launched the following year originally named bitreserve the platform was rebranded as uphold the company says it s not a bank rather it credits itself as being the world s first and only real time transparent and fully verifiable reserve 12uphold offers 40 equities 27 fiat currencies four types of precious metals and more than 130 cryptocurrencies 345 users can send funds to other people and trade over multiple assets from one screen they can also move funds from one form of value to another in one easy step for example users can go from dash to xrp in one step on some other platforms this trade would involve two separate transactions and two separate fees 6the stated goal is to reduce the transaction costs involved in exchanging money particularly for cryptocurrencies such as bitcoin 7 in the earliest years of cryptocurrencies those wishing to hold and trade in the currency often faced a steep learning curve unlike traditional currencies whose infrastructure developed slowly over centuries cryptocurrency enthusiasts and entrepreneurs needed to develop their own infrastructure from scratch the company has similar initiatives to reduce transaction fees it claims that it is less expensive on average than other household name cryptocurrency platforms indeed the company has moved to commission free pricing the price that users see before they trade is the price they pay when they trade 8third party developers are able to develop additional software offerings based on the uphold platform this is made possible through uphold connect the company s application programming interface api 8uphold exchange feesmany cryptocurrency traders share a desire to increase the transparency of these financial platforms uphold was inspired in part by the lack of financial transparency revealed by the 2007 2008 financial crisis one practical example of this commitment is that uphold publishes its reserve status in real time showing the individual asset and liability balances for its tier 1 tier 2 and tier 3 reserves the company is audited quarterly to verify solvency 9for cryptocurrencies uphold offers an all inclusive guaranteed price that includes a small spread of typically 50 to 100 bps 0 5 to 1 0 depending on your individual trading behavior and volumes the spread can be as low as 40 bps 0 4 the company also offers free debit and credit card deposits and zero withdrawal fees with the exception of standard network fees on cryptocurrency networks 8in march 2018 uphold added the cryptocurrency ripple xrp to its platform offering uphold members zero transaction fees on the first five million xrp purchased 10 this move represented a bold entry into the xrp marketplace as coinbase one of the world s largest digital currency exchanges did not support xrp at that time uphold operates on a fully reserved basis this means its obligations are fully backed by the assets it holds in reserve by contrast the standard practice among modern banks is the so called fractional reserve model in which banks often retain only a small percentage of the assets given to them by depositors those assets that are not retained by the bank are instead lent out to customers or invested in order to obtain a higher return requirements for uphold | |
when users sign up for uphold they are asked to provide the following personal information | in order to withdraw or send funds to other people individuals must become verified users to become a verified user uphold requires a current residential address a valid government photo identification and a live selfie 11advantages and disadvantages of upholdjust like any other platform individuals must consider the benefits and drawbacks of using uphold we ve listed some of the most common ones below uphold users can make trades exchanges and transfers across multiple asset classes and the service allows users to convert from one asset class to another this includes traditional currencies precious metals cryptocurrencies and equities the company is very transparent about its fee structure this means there are no surprises about how much uphold charges for using the platform and how much it charges per transaction as noted above uphold s all inclusive price comes with a small spread between 0 5 to 1 0 but it can be as low as 0 4 although uphold offers its users a variety of asset classes there are limitations to the number in each category as of july 2022 uphold allows users to trade four different precious metals and 40 different equities including major names like tesla apple cisco proctor gamble and home depot unlike other digital platforms users won t find any advanced features on uphold this includes things like charts research and other tools that many savvy traders are used to using as part of their daily activities buy and sell across multiple asset classestransparent fee structurelimited options in asset classeslack of trading toolsuphold vs coinbasecoinbase is another well known financial platform unlike uphold coinbase only allows users to buy sell trade and hold cryptocurrencies not different asset classes it was founded in 2012 as a way to trade bitcoin and now supports multiple digital currencies including ethereum and dogecoin users can choose between coinbase and coinbase pro the former provides a user friendly experience for those who are just starting out while the latter offers more advanced features as well as a higher number of trades and trade types like limit and stop orders uphold is very transparent about its fee structure coinbase users on the other hand can t access a fee schedule on the company s website for the simple service and there are significant differences between the two platforms while trading using a bank account is free for uphold users coinbase charges 1 49 trading fees on coinbase are based on the size of the trade so trades of 10 or less incur a 0 99 fee while those between 50 to 200 incur a 2 99 fee coinbase pro does offer a fee schedule on its website 12 | |
where is uphold located | uphold is a digital financial platform that allows individuals to trade and transfer various assets including currencies precious metals and cryptocurrencies the company is based in new york | |
is uphold a wallet or an exchange | uphold is a multi asset exchange not just a digital wallet as such it is a platform that allows users to exchange and transfer fiat currencies precious metals cryptocurrencies and certain stocks | |
is uphold safe | uphold is a safe trading platform to use the company has industry standard checks and balances in place including know your client kyc verification it also uses two factor authentication other security measures include third party due diligence a bug bounty program staff background checks and routine auditing and system testing 13 | |
does uphold report to the irs | uphold adheres to regulatory and reporting requirements which means that the company does report all taxable transactions to the internal revenue service irs users are asked for their social security numbers ssns the company makes the relevant 1099 forms available to its clients on its app 14the bottom lineindividual traders who want to make trades and exchanges across multiple asset classes may want to consider uphold the company gives its users access to more than two dozen traditional currencies 40 equities precious metals and more than 130 different cryptocurrencies and the list continues to grow among the other benefits of using this platform include full transparency about its fee structure and the ease with which you can conduct your trades and if you want to make sure that your money is safe uphold promises to stay on top | |
what is the upper class | the term upper class refers to a group of individuals who occupy the highest place and status in society these people are considered the wealthiest lying above the working and middle class in the social hierarchy individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources while the upper class makes up a small percentage of the overall population it controls a disproportionately large amount of the overall wealth understanding upper classthe term upper class is a socioeconomic term used to describe those who reside on the highest levels of the social ladder above the middle and working or lower classes they generally have the highest status in society and hold a great deal of wealth because of this they also carry a considerable amount of power politically economically and financially members of the upper class carry a considerable amount of power politically economically and financially this class was historically dominated by land owning nobility and aristocrats people who fell into these groups didn t have to work for a living instead they inherited their money or lived off their investments because this group was primarily composed of large wealthy families those who didn t belong including anyone who managed to amass a considerable amount of wealth were barred from calling themselves members of the upper class the definition of the term has changed over time to include a wider range of people today celebrities politicians investors and other wealthy individuals fall into this group in the united states those who lived and continue to live in leadership roles in society are often considered part of the upper class these are people whose status has been passed down through generations according to a 2018 study by pew research center 19 of american adults were part of upper class households these families earned a median income of 187 872 in 2016 compared to 52 who made up the middle class and 29 who made up the lower class 1 the wealth held by these individuals has led to a disparate gap in income and power over those in other classes while those in the upper class exert significant control over economic and political developments most production activities and consumption are done by the working and middle classes the working and middle classes handle most of the economic production and consumption because they are much larger in number than the small upper class and require a more significant percentage of the resources the upper class vs other classesas mentioned above income and power generally separate the upper class from the other classes the middle class generally describes households with people who fall between the upper and working or lower class the parameters of the middle class are fairly fluid its application to income education and social status varies based on location and other factors many people who make up the middle class work as professionals and civil servants and own property the working or lower class refers to those who make up the lowest level of society these individuals often work in low paying blue collar jobs that require physical labor and limited skill working or lower class individuals earn much less than the upper and middle class and hold very little power in society in a frontier or emerging economy there are often only two classes the working class or poor and the upper class or elite as an economy develops and better jobs and infrastructure create more wealth a middle class emerges the newly emerged middle class starts to have more disposable income which further advances the economy eventually a divide within the middle class emerges and separates the average middle class from those who have significantly more disposable income but aren t yet considered rich these are the upper middle class people the upper middle class usually evolves out of people from the middle class tier who are particularly resourceful or who achieve higher levels of education than the rest of the middle class examples of these people in today s society are doctors and lawyers although they are not bill gates they do make more money than teachers | |
what is upper management | upper management includes individuals and teams that are responsible for making the primary decisions within a company understanding upper managementpersonnel considered to be part of a company s upper management are at the top of the corporate ladder and carry a degree of responsibility greater than lower level personnel upper management members are imbued with powers given by the company s shareholders or board of directors examples of upper management personnel include ceos cfos and coos shareholders hold a company s upper management responsible for keeping a company profitable and growing shareholders do this by exercising their voting power to install boards of directors that will fire underperforming or otherwise disapproved managers because upper management personnel members are often not seen by most employees they are not expected to engage in day to day operations upper management s duties responsibilities and careers are often tied directly to a company s direction performance and success because these positions responsibilities are pivotal to a company s success or failure they also receive great benefits managers and supervisors relay upper management directives to junior staff and lower level employees employees typically are measured against daily goals such as the flow of sales at their retail location or the number of customers they serve upper management may face a wholly different degree of criteria the overall sales across a division or regional market may be used to gauge the job performance of the executive in upper management who oversees said division for instance a scientist or other researcher working for a drug company can be expected to take a direct hands on role in the development of new drug candidates they will conduct the tests and reformulations to advance the potential product toward submission to regulators a middle manager might lead their team working on the project but an executive from upper management will have the prevailing authority on the direction the team takes and bear responsibility for how their efforts affect the company as a whole if the drug development is a success and furthers the company s strategic plans the executive who heads the division may be assigned similar projects in the future if a company performs below its targeted goals loses traction compared to its rivals or its market valuation declines members of upper management may face the most immediate scrutiny from shareholders persistent poor performance of the company could prompt a shakeup of the upper management this may be focused on one or more individuals such as the ceo or could be a sweeping removal of the executive leadership the removal of upper management may be done to salvage a company s business and operations and introduce a new direction to follow a new upper management team might be brought in to correct the course of the company and prepare it to pursue a new direction which may include a sale of the business c suite rolesc suite or c level is widely used vernacular describing a cluster of a corporation s most important senior executives c suite gets its name from the titles of top senior staffers which tend to start with the letter c for chief as in chief executive officer ceo chief financial officer cfo chief operating officer coo and chief information officer cio the main c suite executives are other c suite officers include the chief compliance officer cco chief human resources manager chrm chief security officer cso chief green officer cgo chief analytics officer cao chief medical officer cmo and chief data officer cdo the number of c level positions varies depending on variables such as a company s size mission and sector while larger companies may require both a chrm and a coo smaller operations may only need a coo to oversee human resources activities | |
what is an upreit | upreit means umbrella partnership real estate investment trust an upreit is a unique reit structure that allows property owners to exchange their property for share ownership in the upreit however upreits are generally subject to internal revenue code irc section 721 exchanges 1understanding upreitsreal estate investment trusts reits were introduced by dwight d eisenhower as a type of alternative real estate mutual fund 2 reits are created as a type of real estate portfolio that includes real estate properties and real estate financing capital reits are an entity that allows investors to make investment contributions for equity units or shares of the business as reits have evolved in the market some alternative structures have been developed to provide for different types of investors the upreit is one such structure primarily known for its allowance of property contributions in exchange for share ownership the downreit and some other alternatives have also been created as offshoots in their formation reits can choose to take on any type of business structure publicly traded reits will be structured as corporations private reits will generally choose to be structured as a trust or association though they may also choose other statuses like most non corporations private entities also have the option to be taxed as a corporation | |
what is primarily important for any reit is that they meet the requirements of irc title 26 sections 856 859 when meeting these requirements a reit can pass through all of its income to its shareholders as such the pass through income is considered a deduction and the reit pays very little in taxes the main requirement is that greater than 90 of the business pertains to real estate assets 3 | special considerationsinstead of selling property an owner can contribute it to an upreit in exchange for units the share units generally have the same value as the contributed property since the property sold to the reit is covered under irc section 721 the transaction does not create a taxable event 1in property to share conversion upreits may dictate special provisions often the exchange provides the seller with special units that allow the property seller to choose how they would like to vest in the reit property sellers may be allowed to immediately convert units to reit shares 3 other options may also be available such as holding shares for a minimum of one year and then receiving cash once an investor sells their property to an upreit the upreit owns the property and all administration involved with it upreit management can be somewhat more complex than basic reits because of the section 721 exchange option and all of the provisions that come with it for the new unitholder upreit managers are responsible for managing their reit portfolio for the purpose of generating returns shares of the upreit can fluctuate based on the activities of management valuation of the real estate properties financing deals and any other transactions that occur this can create volatility for shareholders upreit shareholders will typically have flexible liquidity which allows them to easily convert their shares to cash whenever they choose benefits of upreitsupreits can be a viable option for any property owner seeking to sell their property as such it can appeal to both individual property owners and commercial property owners any property owner who chooses to make a section 721 exchange into an upreit can receive the value of the property in the form of upreit units 3section 721 exchanges into an upreit do not create a taxable event however unitholders are taxed based on general reit taxation standards 1 some property owners may choose to use this type of investment for estate planning because it can possibly bypass taxes altogether requirements for upreitsan upreit is an reit under all standard accounting and tax guidelines upreits were created to allow for the contribution of property into the reit in exchange for ownership shares this structuring is therefore guided by the standards of irc section 721 which discusses tax shields for property to share exchanges in general any reit which allows for section 721 exchanges within the reit can be considered an upreit most reits will focus on a specific segment of the real estate market though the guiding standards only dictate that real estate property and associated financing must make up greater than 90 of the business 3 upreits will typically follow the same investing strategy focusing on a targeted real estate niche section 721 provides guiding standards for the release of shareholder units in exchange for property section 721 can be an alternative to irc section 1031 exchanges section 1031 exchanges allow a property owner to sell their property and invest the proceeds in a like kind exchange to avoid taxes 4section 1031 exchanges are not allowed in upreits however because they require like kind exchanges and do not allow a property to share ownership exchanges therefore the section 721 exchange into an upreit can be attractive both 721 and 1031 exchanges allow the property owner to defer taxes 5upreit vs downreitupreits downreits and all other special reit entities are simply reits at their core with special provisions that allow them some added flexibility the downreit allows a property investor to enter into a joint venture with a reit in a downreit the unit exchange is based primarily on the value of the property in the joint venture which can create better returns for the joint venture unitholder | |
what is upside | upside refers to the potential increase in the value of an investment portfolio company sector market or economy upside is measured in monetary value or percentage terms analysts commonly use either technical analysis or fundamental analysis techniques to predict the future price and upside of an investment particularly when it comes to stock prices a higher upside means that the stock has more value than is currently reflected in the stock price upside is the opposite of downside which is the negative movement of an investment s price understanding upsideupside refers to the predicted appreciation in the value of an investment financial portfolio company sector market or economy it is the opposite of downside put simply upside is a projected price increase the concept of upside is the motivating factor for an individual to invest the magnitude of the upside move primarily depends on the risk associated with that investment the market axiom of high risk high reward holds when it comes to deciding whether to commit to or pass on an investment investors with a high tolerance for risk typically choose investments with huge upside while those who are risk averse will opt for investments that have limited upside but will be more apt to preserve their initial investment value factors that can affect the upside potential for an investment or portfolio include but aren t limited to the high risk high reward concept corresponds with the idea of upside the higher the risk the more the upside of an investment upside and trading strategiesfundamental analysis evaluates the upside price of a stock by considering the ability of the investment firm to generate sales and earnings and to make effective decisions about company assets companies that manage their costs well and increase their profit margins have a higher upside businesses can increase sales by moving into new markets or by adding a product line money managers who use fundamental analysis also consider how effectively a business uses assets to generate sales and profits technical analysis is a method that considers the historic patterns in the price of a stock and in the trading volume of a security technical analysts believe that price movements are trends and these managers use charts to determine the upside in a stock s price for example a breakout occurs when a stock price trades above a recent price trend if a stock has been trading between 20 and 25 per share for example a price move to 28 is a breakout which is an indication that the stock price has an upside above 28 importance of upsideupside not only refers to an investment s potential gains in value but is also a concept used to judge the success of a portfolio manager s performance when compared to a benchmark for many mutual funds the investment objective is to outperform a specific benchmark such as the standard poor s 500 indexes the upside capture ratio indicates how much upside the mutual fund captures when compared to the benchmark 1upside also plays a part in short selling which is the sale of stock that an investor does not own in short selling the seller must deliver borrowed securities to the buyer by the settlement date eventually the short seller must buy the shares to cover the short position and the seller s goal is to buy back shares at a lower price short sellers look for stocks that have reached their upside potential which means the stock s potential to decline increases | |
what is the upside downside ratio | the upside downside ratio is a metric used by technical analysts to determine the direction change of financial assets more specifically it calculates the upward versus downward volume this ratio is calculated by dividing advancing issues volume traded that close above their opening price by declining issues volume traded that close below their opening price analysts and investors use this ratio to understand the momentum of a financial instrument company market sector or economy at any given time this helps identify entry and exit points to maximize gains and minimize losses | |
what does downside mean | downside is the opposite of upside it refers to the drop or negative movement in the price of a financial asset such as a stock it can also refer to the downward movement of a financial portfolio company sector or market like upside downside is expressed in a dollar value or percentage terms | |
what upside risk | upside risk refers to the uncertain upward potential for a financial instrument market sector or economy upside risk is positive which means it can work to an investor or company s favor it is the opposite of downside risk which allows observers to determine how much they may lose the bottom lineupside is a concept that refers to the potential rise in value it can be used to measure the possibility of increase in the value of an asset your portfolio a company or sector or the economy as an investor it is a useful tool that can help you determine the price of stocks and construct a financial portfolio of course it s always important to do your due diligence and ensure that you do regular checkups to ensure that you aren t losing money in the future | |
what is the upside downside gap three methods | the gap three methods is a three bar japanese candlestick pattern that indicates a continuation of the current trend it is a variant of the upside tasuki gap pattern but the third candle completely closes the gap between the first two candles breaking down the upside downside gap three methodsthe upside gap three methods is a bullish continuation pattern with the following characteristics the downside gap three methods is a bearish continuation pattern with the following characteristics the upside downside gap three methods is a rare but reasonably reliable pattern when identified traders should apply other forms of technical analysis to seek confirmation such as price action and technical indicators upside gap three methods trader psychologysuppose the market is engaged in a current uptrend the rally continues on the first candle in a healthy session with the close well above the open generating a wide range real body this increases the bull s confidence while putting bears on the defensive their caution is justified because the second candle opens with a gap up and healthy buying pressure that lifts the security to a new high profit taking causes the third candle to close the gap between the first and second candles the bulls assume the uptrend will resume now that the gap has filled downside gap three methods trader psychologynow suppose the market is engaged in a current downtrend the decline continues on the first candle in a weak session with the close well below the open generating a wide range real body this increases the bear s confidence while putting bulls on the defensive their caution is justified because the second candle opens with a down gap and active selling pressure that drops the security to a new low short covering causes the third candle to close the gap between the first and second candles the bears assume the downtrend will resume now that the gap has filled practical example of trading a gap three methods patternpaul has spotted an upside gap three methods pattern on the chart of cellectis s a and wants to use the formation to enter a long position in the direction of the trend and set his risk parameters he could execute a trade at the closing price of the third candle at 16 39 and place a stop loss order below the first candle s low at 15 75 david may decide to take a more conservative approach and enter a buy stop order slightly above the second candle s high at 16 95 waiting for confirmation that the uptrend has resumed he could then use the low of the third candle at 16 27 as a stop loss point investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors past performance is not indicative of future performance investing involves risk including the possible loss of principal | |
what is the upside downside ratio | the upside downside ratio is a market breadth indicator that shows the relationship between the volumes of advancing and declining issues on an exchange investors typically use this indicator to determine the momentum of the market at any given time the upside downside ratio is a variation on the advance decline ratio adr which compares the number and not the trading volume of stocks that closed higher against the number of stocks that closed lower than their previous day s closing prices the formula for the upside downside ratiothe upside downside ratio is calculated as follows u p s i d e d o w n s i d e r a t i o a d v a n c i n g i s s u e s d e c l i n i n g i s s u e s where a d v a n c i n g i s s u e s total volume traded of securities that close above their opening price d e c l i n i n g i s s u e s total volume traded of securities that close below their opening price begin aligned upside downside ratio dfrac advancing issues declining issues textbf where advancing issues text small total volume traded of securities that text small close above their opening price declining issues text small total volume traded of securities that text small close below their opening price end aligned upside downside ratio declining issuesadvancing issues where advancing issues total volume traded of securities thatclose above their opening pricedeclining issues total volume traded of securities thatclose below their opening price understanding the upside downside ratiofor technical analysis strategies recognizing directional change is essential to success the upside downside ratio is an effective way to help traders quickly get a feel for potential trends or the reversal of existing trends the upside downside ratio is often smoothed using a simple moving average to filter out smaller less significant movements the indicator generates values greater than 1 when the volume on advancing issues is greater than declining issues it generates values less than 1 when the volume on the declining issues is greater than advancing issues the upside downside ratio also known as the up down volume ratio is available as a technical indicator on many trading platforms trading with the upside downside ratiothe upside downside ratio is often used to gauge overbought and oversold conditions in the market low values can indicate that the market is reaching oversold levels while high values can indicate that the market is becoming overbought as an example if the indicator has a value of less than 1 traders could look for buy entry points in securities that are approaching significant support levels such as stocks nearing their long term trendlines momentum traders who trade in the direction of the prevailing trend often use the upside downside ratio to confirm the broader market has support from institutional investors traders may decide to use the indicator as a trade entry filter for instance they may only buy a stock when the indicator is above 1 5 or take a short position when it is below 0 5 traders should use other technical indicators in conjunction with the upside downside ratio when building a trading strategy special considerationsother technical indicators such as the relative strength index rsi and stochastic oscillator could be used with the upside downside ratio to ensure the market is not in an extreme overbought or oversold condition and due for a price correction for example if the indicator has a value less than 0 5 and the rsi is below 30 it may be prudent to avoid entering a short position until a short term retracement occurs | |
what is an upside gap two crows | the upside gap two crows pattern is a three day candlestick chart formation that signals an upward price move may be running out of momentum and could reverse lower since the pattern involves three specific candles in a certain order the pattern is not very common | |
what does the upside gap two crows tell you | the upside gap two crows is a bearish reversal signal in technical analysis the pattern has formed when the following requirements are met there are several important hallmarks of this pattern first the pattern must form during a clear uptrend second the first candle must be a large bullish candlestick white or green that continues an uptrend this candle must be be followed by a bearish candlestick black or red that gaps up and has a small real body lastly the third candle must be another bearish candlestick that engulfs the second candlestick it opens above the prior candle and closes below it however the third candle must still close above the first day s close the upside gap two crows signals that the security may be rolling over as its upward move ends and a downtrend begins the rationale for this interpretation is that despite two strong opens on candle 2 and 3 the bulls have been unable to maintain upward momentum suggesting that sentiment is turning from bullish to bearish the pattern is only three bars therefore looking at context and for confirmation is useful in trading the pattern in a strong uptrend the pattern may just be a pause before the price continues higher waiting for confirmation entails waiting for the price to continue dropping before the pattern is acted on for example a current long trade is exited only if the price continues to drop below the low of the third candle a trader could also short or sell near the close of the third candle no confirmation placing a stop loss above the high of the third candle if going short example of how to use the upside gap two crows patternthe daily chart of apple inc appl shows an upside gap two crows pattern the price is rising over the last three weeks and has a strong green candle followed by a gap higher and down candle followed by a third down candle that engulfs the prior red candle a trader could use the pattern to signal an exit for long positions exiting near the close of the third candle or going short at that time alternatively the trader could wait for confirmation exiting once the price drops below the low of the third candle in the pattern the price gapped down after the pattern so the following open would have provided the next exit or short entry just prior to the upside gap two crows pattern there is a chart formation that looks very similar it is not valid because the second candle closes inside the price area of the first candle green and the third candle doesn t open above the second the difference between the upside gap two crows and the three black crows patternthe upside gap two crows pattern signals a possible reversal of an uptrend three black crows signal the same thing but in a different way three black crows are three long bearish candles that occur following an uptrend they signal that the uptrend has lost momentum and the bears have taken over pushing the price lower limitations of the upside gap two crows candlestick patternthis candlestick pattern doesn t indicate how far the price could fall after the formation of the pattern if in fact the price does fall this means other forms of technical analysis or price action analysis are required in order find an exit point for short positions or indicate how far the price may decline the pattern doesn t always result in a reversal lower the price could move sideways following the pattern or continue higher investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal | |
what is an upside tasuki gap | an upside tasuki gap is a three bar candlestick formation that is commonly used to signal the continuation of the current trend understanding the upside tasuki gapthe upside tasuki gap demonstrates an uptrend s strength through the gap open of the pattern s second candle as well as its escalating price the pattern s third candle indicates a pause in the trend as the bears attempt to move the price lower but cannot close the gap between the first and second candle the bear s inability to close the gap suggests the uptrend will likely continue traders may also refer to the pattern as a bullish tasuki gap or the upward gap tasuki its adverse counterpart which occurs in a bearish market is known as a downward tasuki gap both patterns are predicted to have originated from japanese technical analysis the upside tasuki gap is one of many gap patterns that can form throughout a bullish trend supporting uptrend gap patterns are also usually used in conjunction with the upside tasuki gap to add confirmation to a bullish trading strategy gaps are significant price changes that typically occur from one trading day to the next typical gap patterns form over two to three days of trading it is not uncommon to see the price of an asset close a price gap previously created sometimes traders push the price higher too quickly which can result in a slight pullback the black red candlestick that forms the upside tasuki gap acts as a period of minor consolidation before the bulls continue to send the price higher upside tasuki gap within an uptrendupside tasuki gaps can occur at any time during a bullish trending pattern bullish patterns typically follow a cycle that begins with a breakaway gap confirming a reversal and then several runaway gaps followed by an exhaustion gap as the price of a security trends higher it often forms an ascending channel traders construct the pattern by drawing two upward sloping lines at the peak and trough levels of price action an upside tasuki gap can occur within an ascending channel that also includes one or several of the gaps mentioned above practical example of trading the tasuki gapdavid spots an upside tasuki gap on the ishares 10 year investment grade corporate bond etf chart and wants to use the pattern to enter a trade and set risk parameters he could enter on the close of the third red candle at 62 97 and place his stop loss order beneath the low of the first candlestick at 62 08 alternatively david could place a buy stop order slightly above the pattern s second candlestick high at 63 39 to confirm the uptrend has resumed and set his stop under the third candlestick s low at 62 93 | |
what is an upstairs market | the term upstairs market refers to a network that exists between large firms and institutional investors this network involves large trades or block orders trades in these transactions are not submitted through a stock exchange which means they are not visible to other market participants these orders are carried out directly between buyers and sellers with professional brokers acting as intermediaries the size of the order made in the upstairs market accounts for a big portion of the market s trading volume understanding upstairs marketsupstairs markets involve networks of trading desks that conduct large volumes of trades these trades are often called upstairs trades 1 because of the sheer volume involved these trades are normally done by institutional investors such as mutual funds banks pension funds insurance companies and brokerage companies as noted above these trades take place off the trading floor and are normally done electronically or over the phone 2 the way these upstairs trades are conducted means there are no large swings or disruptions to securities prices in the market 1 routing trades through professional intermediaries i e away from the eyes of retail investors can help prevent activities like front running or trading that takes place by a broker who has inside information that will affect the price of a stock front running may negatively impact the price or execution of a trade special considerationsthese markets are sometimes described as dark pools hence the phrase dark pools of liquidity dark pools are financial exchanges networks or forums where the trading activity takes place and are organized privately between the parties involved dark pools like upstairs markets allow investors to make large trades without having to disclose the details publicly although they may seem shady dark pools and upstairs trades they are completely legal 1this doesn t mean that regulators aren t paying attention as of 2014 trades executed in the upstairs market represented 15 of all trading activity in the united states and there s a very good likelihood that that figure continues to grow 3some authorities continue to question whether the practice undermines the transparency and accessibility of financial markets for retail investors leading to stricter rules which help cut down on dark pool trading for instance regulators in the united states are also questioning whether this method of trading hurts retail investors and undermines trading activity and have taken some steps to make the market fair for all participants for instance the financial industry regulatory authority finra introduced an initiative that requires the weekly publication of trades that occur on an alternative trading system ats it was approved by the u s securities and exchange commission sec in 2014 5alternative trading systems allow trading activity to take place off exchanges and do not enforce rules about the conduct of participants which is why regulators keep an eye on them upstairs market vs downstairs marketif there s an upstairs market then there s bound to be a downstairs market right the answer is yes since the upstairs market is a private network involving institutional investors brokerage firms and intermediaries it s safe to assume that the downstairs markets are stock exchanges downstairs markets or stock exchanges create liquidity in the market with trades that are executed by small investors market makers and traders who are actually on the floor unlike the upstairs market which involves large trading volumes trades that are conducted in the downstairs market are usually smaller 6 trade details are also available including prices and the amount of stock traded advantages of an upstairs marketif a hedge fund wishes to unload its position in a security and submits a large sell order to the stock exchange accordingly that sell order may be interpreted by other market participants as a bearish signal on that particular security this in turn may lead other investors to bid down the price of the security causing the hedge fund to obtain a less favorable sale price the upstairs market can also be beneficial for institutional investors because of the reduced transaction fees by carrying out a large block order with just one or a small number of institutional counterparties the firms involved could pay substantially lower overall commissions or other fees as compared to trading with a much larger number of smaller counterparts in some cases such as when executing program trades that require several transactions to be executed simultaneously using professional intermediaries in the upstairs market may in fact be the only way to effectively carry out the strategy | |
what is an upstart | an upstart is a person who has risen in social rank and or economic status but who has yet to be widely accepted by other individuals in the newly found social and economic class upstart is also the name of an online money lending platform founded in 2012 that provides personal loans using non traditional credit variables including education and employment status instead of standard credit ratings 1 the term upstart should also not be confused with a startup which is a newly formed business venture generic meaning of upstartan upstart is a person who has jumped up in social rank or economic class suddenly for example an individual could go from the proverbial rags to riches following an inheritance or following a lucky investment in the stock market the upstart who has quickly risen in economic status has yet to learn the social skills necessary to be accepted by other people in their new class instead of being humbled by this and asking for instruction or attempting to learn the upstart becomes arrogant and presumptuous which turns off associates in the new social class if the upstart is consistently rejected they may become increasingly stubborn and opinionated as they are spurned as in the case of a person who has suddenly become wealthy the upstart may respond by acting superior to others especially if the new position requires the upstart to manage or lead people this change can be disastrous if the upstart does not have the skills needed to do well in the role while still having an inflated attitude about being a leader meaning of upstart in the workplacewhile an upstart can make for a bad manager they can make for an even worse employee as an upstart gains money and position they are less inclined to self correct and work as a team player and more inclined to view their own work more positively than they view others this can cause a great deal of disharmony and bad feelings in the workplace as the upstart s manager and co workers begin to resent the upstart if the upstart is unable to correct and restore healthy working relationships then they will likely fail in the job even if they have the technical skills to succeed | |
what are some synonyms of upstart | some synonyms of upstart include arriviste nouveau riche parvenu and social climber 2 | |
where does the term upstart come from | the earliest known use of the term is found in the middle english period 1150 1500 specifically the first evidence of its use as a verb is from 1303 in the writing of the poet and historian robert mannyng the word upstart is formed within english by derivation 3 | |
what is the difference between startup and upstart | a startup can be seen as an entrepreneurial venture or company in the initial stages of business and funded by venture capital angel investors crowdfunding loans or even family and friends the word upstart in this context can have a close meaning referring to a new company that is starting to run without significant external funding the word upstart however comes with a negative connotation it implies that the business is attempting to gain recognition or success without the proper experience and lacking credibility the word startup on the other hand can be associated with innovation and potential for growth 4the bottom linean upstart in the workplace denotes an individual usually a young person who has just started in a new position but who behaves as if they are more important or skillful than the other employees the arrogant and dismissive attitude of an upstart can lead to disharmony in the workplace and disgruntled employees the term upstart should be confused with startup which has a positive connotation or with the lending platform under the same name | |
what is upstream | upstream is a term for the operations stages in the oil and gas industry that involve exploration and production oil and gas companies can generally be divided into three segments upstream midstream and downstream upstream firms deal primarily with the exploration and initial production stages of the oil and gas industry 1many large oil companies are called integrated because they combine upstream activities with midstream and downstream operations which take place after the production phase through to the point of sale understanding upstreamthe upstream sector of the oil and gas industry includes all the steps involved from the preliminary exploration through the extraction of the resource upstream companies can be involved in all the steps of this phase of the life cycle of the oil and gas industry or they may only be involved in part of the upstream sector another name for the upstream oil sector which is actually more representative of what occurs in this stage of development of an oil asset and or natural gas asset is the exploration and production e p sector the e p segment is the earliest portion of the oil and gas production process companies within this segment are primarily focused on locating and extracting commodities from the earth the exploration stage involves the search for hydrocarbons which are the primary components of petroleum and natural gas land surveys are performed to help identify the areas that are the most promising the goal is to locate specific minerals underground in order to estimate the amount of oil and gas reserves before drilling geologists study rock formations and layers of sediment within the soil to identify if oil or natural gas is present 2the process can involve seismology which uses substantial vibrations as a result of machinery or explosives to create seismic waves how the seismic waves interact with a reservoir containing oil and gas helps to pinpoint the reservoir s location once it has been determined that there appear to be reserves beneath the ground the test drilling process can begin upstream companies measure oil production in barrels one barrel usually abbreviated as bbl is equal to 42 u s gallons 2 companies often describe production in terms of bbl per day or bbl per quarter the oil exploration processoil and gas exploration is an important part of the upstream sector petroleum exploration requires very sophisticated techniques and the technology available for petroleum exploration is rapidly advancing normally exploration starts in an area that has a high potential to hold a resource usually due to the local geology and known nearby petroleum deposits in a high potential area further exploration is completed to delineate a resource the geophysical and geochemical analysis is done using techniques including induced polarization ip surveys drilling and assaying electrical currents and so on in the exploration phase the goal is to locate and estimate the potential of a resource if an area shows potential to host a resource exploratory wells are drilled to test the resource in the oil and gas sector test drilling is an important component of the exploration phase in the event that the exploratory well is successful the next step is to construct wells and extract the resource upstream companies also operate the wells that bring the crude oil or natural gas to the surface rig count and utilization rates are economic indicators of the amount of activity happening in the united states at any given time midstream and downstreamonce the resource has been extracted the upstream part of the business is over midstream companies gather the raw resource and transport the resource via pipeline railway or tanker truck to refineries refineries are the downstream phase of the oil and gas industry they process the raw crude oil into their end petroleum products they also sell and distribute natural gas and the products that are derived from crude oil midstream is a term used to describe one of the three major stages of oil and gas industry operations midstream activities include the processing storing transporting and marketing of oil natural gas and natural gas liquids midstream companies focus on the storage and transportation of oil and natural gas through pipelines midstream companies deliver the reserves to companies involved in the final stage of production called downstream companies in the downstream sector are those that provide the closest link to everyday users downstream operations are the processes involved in converting oil and gas into the finished product these include refining crude oil into gasoline natural gas liquids diesel and a variety of other energy sources the closer an oil and gas company is to the process of providing consumers with petroleum products the further downstream the company is said to be examples of upstream companiesupstream oil and gas production and operations identify deposits drill wells and recover raw materials from underground and are involved in exploration and extraction many of those employed in the upstream part of the industry include geologists geophysicists service rig operators engineering firms scientists and seismic and drilling contractors china national offshore oil corporation and schlumberger slb are examples of large companies that focus on upstream services today most of the global oil giants have both upstream and downstream activities and are known as integrated oil companies many of the largest upstream operators today are therefore major diversified oil and gas firms such as exxon mobil xom and chevron cvx | |
what does upstream mean in the oil and gas industry | upstream refers to the initial phases of oil and gas production involving exploration drilling and extraction of crude oil and natural gas | |
what is the difference between upstream and downstream | while upstream entails the initial phases of oil and gas production downstream encompasses the final phases including refining and distribution of finished products like gasoline to consumers in general the farther a part of the process is from the end user consumer the more upstream it is | |
what are the three sectors of the oil and gas industry | in addition to upstream and downstream the midstream sector is involved with the transportation of oil and gas extracted from the earth via pipelines ships trucks or trains to the refineries | |
what are examples of upstream companies | the upstream sector involves companies that search for deposits of oil or gas exploration and then its extraction through drilling or other methods upstream also includes related services companies such as those dealing in rig operations feasibility studies machinery rental and extraction of chemical supply | |
is a refinery upstream or downstream | a refinery is considered to be downstream | |
what is the upstream capital costs index ucci | the upstream capital costs index ucci is a proprietary metric index that tracks the composite capital cost of materials facilities equipment and personnel for oil and natural gas producing projects cambridge energy research associates cera formerly owned by ihs markit merged with s p global in february 2022 which owns and manages the index 1understanding the upstream capital costs index ucci s p global s upstream capital costs index ucci offers a concise benchmarking tool for analysts traders and others interested in the oil and gas industry use of the index is helpful in tracking and forecasting the performance of the underlying oil and gas properties the ucci is only one of a family of indexes published by s p global a global data analytics technology and advisory firm the company s indexes include 3components of the uccithe 28 projects included in the ucci represent a diversified portfolio of liquified natural gas lng pipeline onshore and offshore projects in a range of geographic locations the index looks at the changes to operating and capital costs over specific time frames 2generally oil and gas production separates into the upstream midstream and downstream stages the upstream segment of operations involves exploration and production e p of oil and natural gas many large integrated oil companies combine upstream activities with midstream and downstream operations 4the composite cost of capital is a company s cost to finance its business and projects the determination of this amount is known as the weighted average cost of capital wacc the calculation involves multiplying the cost of each of the individual capital components by its proportional weight and then summing the results a high composite cost of capital indicates that a company has high borrowing costs 5history of the uccicambridge energy research associates cera established in 1983 in cambridge massachusetts focuses on energy research and consulting for the energy industry the company has the distinction of being a leading authority on energy markets and related trends and statistics cera serves as an advisory source for government departments and private companies 6 ihs energy a prominent source of information related to the oil and gas industry acquired cera in 2004 7 in 2009 the joint organization adopted the new blended name of ihs cera inc 8 ihs cera merged with s p global in february 2022 | |
what does upstream mean in the oil and gas industry | in extractive industries upstream refers to the earliest stages of operation such as exploration drilling and mining upstream costs refer to the costs of drilling and pumping mineral resources before shipping them to the next stage of the production process | |
what does downstream mean | in extractive industries downstream refers to the last stages of operation just before products are sold to consumers in petrochemical industries this can include refining and transportation to the final destination | |
what does midstream mean in the oil and gas industry | in extractive industries midstream refers to intermediate operations between extracting and delivering final products to consumers this includes piping and transportation operations between extraction points and refineries it also includes processing plants that remove sulfur from raw natural gas and produce natural gas liquids the bottom linethe upstream capital costs index ucci measures the capital costs for businesses that extract oil and natural gas it is part of a larger family of indexes published by s p global to evaluate the costs for companies in those industries | |
what is an upstream guarantee | an upstream guarantee also known as a subsidiary guarantee is a financial guarantee in which the subsidiary guarantees its parent company s debt an upstream guarantee can be contrasted with a downstream guarantee which is a pledge placed on a loan on behalf of the borrowing party by the borrowing party s parent company or stockholder | |
how upstream guarantees work | upstream guarantees enable a parent company to obtain debt financing on better financing terms by expanding the available collateral they often occur in leveraged buy outs when the parent company does not have enough assets to pledge as collateral a payment guaranty obligates the guarantor to pay the debt should the borrower default regardless of whether the lender makes a demand on the borrower alternatively a collection guaranty only obligates the guarantor if the lender cannot collect the amount owed after bringing a lawsuit and exhausting its remedies against the borrower guaranties can be absolute limited or conditional typically a lender will insist on an upstream guaranty when it lends to a parent whose only asset is stock ownership of a subsidiary in this case the subsidiary owns substantially all the assets upon which the lender bases its credit decision the problem with upstream guarantees is that lenders are exposed to the risk of being sued for fraudulent conveyance when the guarantor is insolvent or without adequate capital at the time it executed the guarantee if the issue of fraudulent conveyance is successfully proved in a bankruptcy court the lender would become an unsecured creditor clearly a bad outcome for the lender since the subsidiary guaranteeing the debt payments owns no stock in the parent company borrowing the funds the former does not directly receive any benefits from the loan proceeds and hence does not receive a reasonably equivalent value for the guarantee provided upstream vs downstream guaranteesan upstream guarantee like a downstream guarantee in which the parent company guarantees the subsidiary company s debt does not have to be recorded as a liability on the balance sheet however it is disclosed as a contingent liability including any provisions that might enable the guarantor to recover funds paid out in a guarantee a downstream guarantee can be undertaken in order to help a subsidiary company obtain debt financing that it otherwise would be unable to obtain or to obtain funds at interest rates that would be lower than it could obtain without the guarantee from its parent company in many instances a lender may be willing to provide nancing to a corporate borrower only if an af liate agrees to guarantee the loan this is because once backed by the financial strength of the holding company the subsidiary company s risk of defaulting on its debt is considerably less the guarantee is similar to one individual cosigning for another on a loan | |
what is an uptick | uptick describes an increase in the price of a financial instrument since the preceding transaction an uptick occurs when a security s price rises in relation to the last tick or trade an uptick is sometimes also referred to as a plus tick | |
how an uptick works | since 2001 the minimum tick size for stocks trading above 1 is 1 cent that means that a stock that goes from 9 to at least 9 01 would be considered to be on an uptick conversely if it goes from 9 to 8 99 it would be on a downtick 1a stock can only experience an uptick if enough investors are willing to step in and buy it consider a stock that is trading at 9 9 01 if the prevailing sentiment for the stock is bearish sellers will have little hesitation in hitting the bid at 9 rather than holding out for a higher price likewise potential buyers will be content to wait for a lower price given the bearish sentiment and may lower their bid for the stock to say 8 95 if the stock s sellers significantly outnumber buyers this lower bid will likely be snapped up by them on the cme exchanges tick sizes are set by the exchange and vary by contract instrument 4in this manner the stock may trade down to 8 80 for example without an uptick at this point however the selling pressure may have eased up because the remaining sellers are willing to wait while buyers who think the stock is cheap may increase their bid to 8 81 if a transaction occurs at 8 81 it would be considered an uptick since the previous transaction was at 8 80 types of upticksthere are several terms that contain the word uptick they include zero upticks which refers to a transaction executed at the same price as the trade immediately preceding it but at a price higher than the transaction before that uptick volume meaning the number of shares traded while a stock price is rising and the uptick rule special considerationsthe significance of an uptick in financial markets is largely related to the uptick rule this directive originally in place from 1938 to 2007 dictated that a short sale could only be made on an uptick it was introduced to prevent short sellers from piling too much pressure on a falling stock price 2the repeal of the u s uptick rule in july 2007 has been highlighted by many market experts as a contributing factor in the surge in volatility and the unprecedented bear market of 2008 09 5in the absence of an uptick rule short sellers can hammer the stock down relentlessly since they are not required to wait for an uptick to sell it short such concerted selling may attract more bears and scare buyers away creating an imbalance that could lead to a precipitous decline in a faltering stock alternative uptick rulein february 2010 the securities and exchange commission sec introduced an alternative uptick rule designed to promote market stability and preserve investor confidence during periods of volatility 3the new rule states that short selling a stock that has already declined by at least 10 in one day would only be permitted on an uptick it is hoped that this will give investors enough time to exit long positions before bearish sentiment potentially spirals out of control leading them to lose a fortune 3most securities are covered by the rule in the event it is activated the alternative uptick rule would apply to short sale orders for the remainder of the day as well as the following day example of an uptickstock abc is currently priced at 15 50 sentiment on the stock is positive as the company has come out with a new product that is supposed to outperform all competitors investors are bullish on the stock and start purchasing it the stock goes from 15 50 to 15 60 in one transaction which is an uptick | |
what is uptick volume | uptick volume refers to the number of shares that are traded when a stock is on an uptick uptick volume is used by technical traders who use it to determine a stock s net volume the difference between its uptick volume and downtick volume investors and traders look for uptick volume which is a shift in volume upwards to determine a new trend of a stock moving up | |
what is the difference between uptick and downtick | the difference between uptick and downtick is that an uptick is an increase in a stock s price from its previous transaction the increase has to be by at least 1 cent a downtick is a decrease in a stock s price from its previous transaction the decrease has to be at least by 1 cent | |
what is the downtick uptick rule | the downtick uptick rule also known as rule 80a was a rule that the new york stock exchange nyse had established to maintain orderly markets in a market downturn the rule was abolished in 2007 the rule stated that whenever the nyse composite index gained or lost more than 2 from the previous day that all sell trades on s p 500 stocks during an upturn in the market be labeled as sell plus and that all buy trades during a downturn in the market be labeled as buy plus these trades were flagged before execution in order to slow trading on s p 500 companies because it halted the use of program trades that usually trade in large volumes 6 | |
what does an uptick in bond yields mean | an uptick in bond yields means the returns that an investor will receive from investing in the bond will be higher when the yield of a bond goes up its price goes down the bottom linean uptick is an increase in a stock s price by at least 1 cent from its previous trade traders and investors look to upticks and downticks to determine what price a stock may be moving and what might be the best time to buy or sell a security | |
what is the uptick rule | the uptick rule also known as the plus tick rule is a rule established by the securities and exchange commission sec that requires short sales to be conducted at a higher price than the previous trade investors engage in short sales when they expect a securities price to fall the tactic involves selling high and buying low while short selling can improve market liquidity and pricing efficiency it can also be used improperly to drive down the price of a security or to accelerate a market decline understanding the uptick rulethe uptick rule prevents sellers from accelerating the downward momentum of a securities price already in sharp decline by entering a short sale order with a price above the current bid a short seller ensures that an order is filled on an uptick the original rule was introduced by the securities exchange act of 1934 as rule 10a 1 and implemented in 1938 the sec eliminated the original rule in 2007 but approved an alternative rule in 2010 the rule requires trading centers to establish and enforce procedures that prevent the execution or display of a prohibited short sale the 2010 alternative uptick rule rule 201 allows investors to exit long positions before short selling occurs the rule is triggered when a stock price falls at least 10 in one day at that point short selling is permitted if the price is above the current best bid 1 this aims to preserve investor confidence and promote market stability during periods of stress and volatility the rule s duration of price test restriction applies the rule for the remainder of the trading day and the following day it generally applies to all equity securities listed on a national securities exchange whether traded via the exchange or over the counter the uptick rule is designed to preserve investor confidence and stabilize the market during periods of stress and volatility such as a market panic that sends prices plummeting exemptions to the rulefor futures there are limited exemptions to the uptick rule these instruments can be shorted on a downtick because they are highly liquid and have enough buyers willing to enter into a long position ensuring that the price will rarely be driven to unjustifiably low levels to qualify for the exemption the futures contract must be deemed to be owned by the seller this means that according to the sec that the person holds a security futures contract to purchase it and has received notice that the position will be physically settled and is irrevocably bound to receive the underlying security | |
what is uptick volume | the term uptick volume refers to the volume of shares traded while a stock price rises it is one of many indicators used by investors to make buy and sell decisions uptick volume is commonly used by traders who engage in technical analysis the theory of using charts to see movements and patterns in stock prices and volumes over time it is used to determine a stock s net volume the measurement of its momentum by subtracting the uptick volume from the downtick volume understanding uptick volumetrading volume is an excellent indicator of how much volatility there is in the market uptick volume is used in trading strategies by investors who are focused primarily on chart trends instead of those who follow company fundamentals these investors look for the initial signs of significant momentum shifts upward the uptick volume as well as downward shifts which are called downtick volume uptick volume measures the volume of shares traded while the stock price rises downtick measures momentum heading downwards in a stock price correlated with volume investors look for uptick volume as evidence that a stock is in the early stages of a significant move upwards stock prices typically find bands of resistance when both the upward and downward momentum is thwarted making no clear trend or movement evident breaking upward from this resistance zone is referred to as uptick volume technical analysts and investors look at the uptick downtick indicator when determining whether to buy sell or short a particular stock investors can look at large blocks of stock traded through publicly available data and determine whether the stock is ticking up or down this trading technique is a subset of the overall investor interest in money flows money flow calculates the average high low and closing price of a stock multiplied by the daily volume investors use that daily data to compare it to previous data in seeing whether the money flow trend is positive or negative investors can use a stock s net value the difference between the uptick and downtick volumes to determine whether there s a bullish or bearish trend in the market uptick volume vs downtick volume vs net volumeas mentioned above uptick volume indicates whether a stock will trend upward by contrast downtick volume outlines when a stock price will reverse and drop just like uptick volume downtick volume is used by analysts and investors to understand market movement while predicting where it will go in the future essentially the term downtick volume refers to the total number of shares traded at a price that is lower than the price it traded at immediately before this metric is often used to help make predictions about whether and when the market will reverse its course | |
when used together uptick and downtick volumes calculate a stock s net volume the resulting difference between the two the net volume is the technical indicator that helps investors determine whether there s a bullish or bearish trend if the difference between the uptick and downtick volumes is positive the net volume is bullish by contrast a negative result means a bearish course | special considerationsas noted earlier uptick volume is a subset of technical analysis this is the theory that investors employ when using charts to see movements and patterns in stock prices and volumes over time technical analysis is less concerned with the actual fundamentals of a particular stock and more with the movements indicating buy and sell opportunities on the other hand fundamental stock analysis is of course very important for anyone who wants to buy and hold a solid company for many years fundamental analysis looks at a company s vital health statistics such as cash flow product pipeline and management track record fundamental analysis can be of less interest to day traders and others getting in and out of stocks quickly through their reliance on technical analysis to make money other trading indicators such as the accumulation area and the joseph effect help determine the stock price and volume momentum seasoned investors typically use several models simultaneously to help avoid the pitfalls of false signals that often present themselves in a single model due to other activities occurring outside of that particular model investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal | |
what is an uptrend | an uptrend describes the price movement of a financial asset when the overall direction is upward in an uptrend each successive peak and trough is higher than the ones found earlier in the trend the uptrend is therefore composed of higher swing lows and higher swing highs as long as the price is making these higher swing lows and higher swing highs the uptrend is considered intact some market participants only choose to trade during uptrends these long trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows uptrends may be contrasted with downtrends understanding uptrendsan upward trend provides investors with an opportunity to profit from rising asset prices selling an asset once it has failed to create a higher peak and trough is one of the most effective ways to avoid large losses that can result from a change in trend some technical traders utilize trendlines to identify an uptrend and spot possible trend reversals the trendline is drawn along the rising swing lows helping to show where future swing lows may form moving averages are also utilized by some technical traders to analyze uptrends when the price is above the moving average the trend is considered up conversely when the price drops below the moving average it means the price is now trading below the average price over a given period and may therefore no longer be in an uptrend while these tools may be helpful in visually seeing the uptrend ultimately the price should be making higher swing highs and higher swing lows to confirm that an uptrend is present when an asset fails to produce higher swing highs and lows it means that a downtrend could be underway the asset is ranging or the price action is choppy and the trend direction is hard to determine in such cases uptrend traders may opt to step aside until an uptrend is clearly visible 2trading uptrendsthere are many techniques for analyzing and trading an uptrend looking only at price action is one way using tools such as trendlines and technical indicators another two common price action trading strategies which can be confirmed or invalidated with additional input from technical tools and indicators are to buy when the price pulls back during an uptrend or to buy when the price is attempting to make a new swing high even as the price rises it will oscillate up and down the moves lower are called pullbacks if a trader or investor believes the price will continue higher after the pullback they can buy during the pullback and profit from the ensuing price rise some trend traders view buying during a pullback as too risky or time consuming since there is uncertainty as to whether the price will rise again and when these traders may prefer to wait for the price to be definitively rising again this means they may end up buying near the prior swing high or when the asset pushes into new high territory both strategies require specific entry criteria to enter a trade the trader buying during pullbacks may look to buy only if the price is near anticipated support such as a rising trendline moving average or fibonacci retracement level they may also wait for selling on the pullback to slow and for the price to start turning up before buying 3traders that buy near prior highs because they want to see that the price is moving higher again may decide to only enter once the price moves above a short term resistance level this could be a consolidation or chart pattern high alternatively they may wait for the price to move to new highs on a big volume jump or for a technical indicator to flash a buy signal 4risk can be controlled with a stop loss this is typically placed below a recent swing low since the trader is expecting the price to move higher be mindful that past performance is not always an indicator of future price movement exiting a profitable uptrend strategyways to exit a profitable trade are plentiful these could include when the price makes a lower swing low a technical indicator turns bearish a trendline or moving average is broken or a trailing stop loss is hit 5 let s look at each option a little more specifically example of analyzing and trading an uptrendthe following meta formerly facebook inc chart shows numerous examples of potential trades using support or penetration of resistance on increasing volume a moving average has been added to aid in finding possible support areas several longs have been highlighted with arrows that show a break of resistance on increased volume the price consolidated while in an overall uptrend and then broke higher waiting for the volume increase was important otherwise it is possible that trades would have been entered too early or not at ideal times image by sabrina jiang investopedia 2021the small green arrows that are not linked to volume increases are a few of the potential trades that occurred during pullbacks or near support in these cases trades are marked where the price fell briefly below the moving average but then started to climb again there are many strategies that can be associated with uptrends these are general entry strategies for demonstration purposes only while the price was in a downtrend trades were avoided uptrends and common chart patternsthere s two patterns that may help traders identify and strategize about the potential future movements of a security let s dig into both ascending triangles and bullish flags one of the classic continuation patterns found in uptrends is the ascending triangle it consists of two main components a horizontal resistance line and an ascending trendline the horizontal resistance is formed by a series of peaks at approximately the same price level indicating a level where selling pressure has historically been significant the ascending trendline connects a series of higher lows signifying the presence of buying interest and an upward trend in the market as the price action unfolds within this area a period of consolidation ensues this consolidation is marked by a gradual tightening of the price range as buyers and sellers reach an equilibrium the coiling effect within the ascending triangle reflects a temporary balance between bullish and bearish forces traders closely monitor this phase as it signifies potential pent up energy within the market the breakout from an ascending triangle is the critical moment a trader should watch for a breakout occurs when the price decisively moves above the horizontal resistance line signaling a shift in the balance of power in favor keep in mind that higher trading volume can help confirm the validity of the movement bullish flags are another common pattern in uptrends representing a brief consolidation period within a strong upward movement the flagpole is formed by the initial sharp price increase followed by a rectangular shaped flag pattern traders interpret the formation of a bullish flag as a temporary period of price consolidation and potential profit taking after a robust upward movement the flag represents a brief moment of equilibrium where buyers and sellers reassess their positions a breakout occurs when the price convincingly moves above the upper boundary of the flag signaling the end of the consolidation phase and confirmation of the continuation of the uptrend this breakout is perceived as a bullish signal meaning the buyers have regained control and are ready to propel the price higher limitations of uptrends in technical analysisthere s a handful of things to keep in mind when trading an uptrend uptrends are susceptible to disruptions caused by sudden spikes in market volatility unforeseen events economic releases or geopolitical developments can trigger rapid and unpredictable price movements some of which may lead to a reversal in the established uptrend technical analysis while valuable is also not infallible and can produce false signals technical analysis primarily focuses on historical price and volume data often neglecting fundamental factors that can influence markets economic indicators corporate earnings and world events may be overlooked especially if a trader has an unbalanced reliance on technical analysis last identifying an uptrend can sometimes be subjective different traders can interpret trends and draw trendlines in various ways this subjectivity introduces a level of ambiguity and may lead to differing conclusions about the same exact historical price action because of this subjectivity it s possible for two investors to have differing opinions while looking at the same chart trading psychology of uptrendspositive sentiment tends to prevail as prices climb fostering a sense of optimism and confidence among market participants the challenge is not letting market sentiment take ahold of you during an uptrend therefore when planning out your trading strategy you may want to consider your entry and exit point to better dictate your trades and try to avoid emotional investing investors may also be faced with fomo the fear of missing out fomo is a pervasive psychological factor that can impact traders during uptrends as prices surge higher there s a natural inclination to fear being left behind in the rally this fear can drive impulsive decision making leading to hasty entries or the reluctance to exit positions even when signs of a potential reversal emerge finally it may be easier to overestimate your abilities during an uptrend overconfidence can lead to excessive risk taking while unwarranted caution may cause missed opportunities when the market in general is performing well it s easier to gain confidence successful traders may be more likely to strike a balance between being vigilant with their strategy and knowing when to adapt to changing conditions based on their knowledge | |
what are the key characteristics of an uptrend on a price chart | key characteristics of an uptrend encompass a sequence of higher highs and higher lows higher highs signify the price reaching progressively elevated levels indicating sustained upward momentum similarly higher lows demonstrate that during pullbacks or retracements the price doesn t decline as much as in previous downturns | |
how can you identify an uptrend using trendlines | trendlines are crucial tools for identifying uptrends in technical analysis traders draw trendlines by connecting successive lows in an uptrend creating a visual representation of the ascending price trajectory | |
how do traders use support and resistance levels in uptrend analysis | support and resistance levels are integral to uptrend analysis guiding traders in identifying key price zones where buying or selling interest may intensify in an uptrend previous resistance levels often transform into new support levels as the price continues to ascend | |
what is the significance of higher highs and higher lows in an uptrend | higher highs and higher lows in an uptrend signify a consistent and robust upward movement higher highs represent peak price levels attained during the trend reflecting sustained buying pressure higher lows demonstrate that buyers are stepping in at progressively higher levels during retracements underscoring the resilience of the uptrend the bottom lineuptrends in technical analysis signify a sustained and consistent upward movement in a security s price characterized by a pattern of higher highs and higher lows on a price chart traders often utilize trendlines moving averages and momentum indicators to identify confirm and navigate uptrends traders can use these tools to capitalize on the prevailing bullish momentum | |
what is the urban development act of 1970 | the urban development act of 1970 is legislation enforced through the u s department of housing and urban development hud that introduced the federal experimental housing allowance program and community development corporation this act was passed to do the following understanding urban development act of 1970the u s department of housing and urban development was established in 1937 through the u s housing act of 1937 the department of housing and urban development act of 1965 established hud as a cabinet level agency within the u s government the urban development act of 1970 authorized the government to provide greater outlays for housing subsidy programs and rent supplement programs for low and moderate income households funding for projects related to the act comes from a variety of sources including state local and federal government donations from individuals and corporations as well as loans through traditional and non traditional financial institutions the act created the community development corporation a national network of nonprofit community based organizations focused on revitalizing their local communities typically low income under served neighborhoods that have deteriorated and where investment is scant first and foremost these organizations help develop affordable housing but they are also involved in economic development sanitation street beautification and neighborhood planning projects the federal experimental housing allowance programthe act also ran the federal experimental housing allowance program which began in 1973 and ended in 1979 involving more than 25 000 families in 12 metropolitan areas with some 170 million in subsidies to individual families the idea was to see how best to improve housing conditions for low income people by giving them vouchers to pay for market rate housing rather than build new public housing the urban institute concluded in the late 1970s that housing allowances do not provide significant momentum towards most of the stated goals of hud policy later policies had hud providing subsidies directly to landlords through the section 8 program and building additional large public housing projects an activity that has largely ended federal spending on housing is mostly geared toward wealthier people a 2017 study by apartment list found the popular tax break called the mortgage interest deduction mid cost the federal government 71 billion in 2015 more than double the 29 billion spent on section 8 funding for low income renters in addition over half of high income households claim mid while just 11 of low income households receive subsidies of any kind for housing mortgage lending discrimination is illegal if you think you ve been discriminated against based on race religion sex marital status use of public assistance national origin disability or age there are steps you can take one such step is to file a report to the consumer financial protection bureau or with the u s department of housing and urban development hud | |
what is the u s agency for international development | the u s agency for international development usaid is an independent federal agency that provides civilian aid to foreign countries by providing development and humanitarian assistance the agency aims to further american interests abroad while improving lives in the developing world understanding the u s agency for international development usaid in 1961 president john f kennedy signed the foreign assistance act into law and created usaid by executive order the agency is tasked with administering the federal government s civilian foreign aid programs which include disaster relief technical assistance poverty alleviation and economic development 1while usaid is independent it is subject to the guidance of the president the secretary of state and the national security council 2 the agency s administrator and deputy administrator are appointed by the president and confirmed by the senate 4usaid is responsible for implementing more than 20 billion in combined annual appropriations most of which come from the u s state department the agency provides assistance to more than 120 countries the top 10 recipients in order of funding are jordan afghanistan ethiopia yemen the democratic republic of congo nigeria syria south sudan kenya and iraq sub saharan africa receives 39 of usaid distributions with the majority of funding going toward health and humanitarian efforts 53history of usaidu s civilian assistance to foreign nations began in the 19th century with informal technical missions in which experts often with government assistance traveled to asia and latin america to spread knowledge of industrial techniques economic policy sanitation and other fields in 1919 congress formed the american relief administration to provide humanitarian assistance to post war europe 6following world war ii the marshall plan launched in a speech delivered by secretary of state george marshall on june 5 1947 is considered by many historians to have been the most effective u s foreign aid program ever this plan saw the u s spend roughly 13 3 billion or 143 billion in 2017 dollars in real terms if we consider inflation to rebuild war ravaged european economies 7the cold war led to competition between the soviet union and the u s to win the favor of third world countries that is outside the first world west or second world communist bloc while much of this effort was focused on military aid civilian assistance also played a part president harry s truman built upon the marshall plan by making international aid a key part of u s foreign policy the goal was to to create markets for the u s by reducing poverty and increasing production in developing countries it was in this context that president kennedy ordered the state department to create an independent agency to coordinate civilian foreign aid 1 | |
what is the u s department of health and human services hhs | the department of health and human services hhs is a cabinet level government department that provides health and human services and promotes research in social services medicine and public health the hhs achieves its goals through 12 agencies that manage more than 100 programs the agencies include the centers for disease control and prevention cdc the food and drug administration fda and the administration for children and families acf 12understanding the u s department of health and human services hhs the department of health and human services was originally founded as a cabinet level department in 1953 as the department of health education and welfare hew in 1979 the department of education organization act created a separate department of education the remaining agencies were reorganized as the department of health and human services on may 4 1980 3the hhs implements parts of the affordable care act enforces the hipaa privacy rule ensures that human subject research conducted by department funded institutions obeys regulations and operates the head start program for children it is also the largest grant making agency in the country 4hhs agencies and officesthe department of health and human services aims to protect the health of all americans and provide essential human services especially for those who are least able to help themselves 2to achieve its mission the hhs has 12 operating divisions which include eight agencies in the u s public health service and three human services agencies all of which offer a variety of health and human services the following is a description of some of them the cdc is the united states primary health protection agency it conducts research and analysis to protect the population from health threats the cdc focuses on science and technology to prevent diseases and manages the nation s biggest health problems that cause death and disability the cdc also promotes healthy and safe behaviors communities and environments 5the acl focuses on the care and health of older adults people with disabilities families and caregivers the acl manages many programs that provide assistance on health and wellness the acl protects rights prevents abuse funds research and strengthens the networks of community based organizations 6the fda protects the public health by ensuring the safety efficacy and security of human and veterinary drugs biological products and medical devices and by ensuring the safety of our nation s food supply cosmetics and products that emit radiation the fda also regulates tobacco products to protect the public and reduce the use of tobacco products by minors 7the number of novel drugs that the fda approved in 2020 which is the second highest count in 20 years 8the other operating divisions of the department of health and human services hhs include the following the hhs oversees more than 100 programs that consist of social service civil rights healthcare privacy disaster preparedness and health related research 2the various social service programs help military families senior citizens and people with low income and disabilities the hhs oversees healthcare rights in the health insurance portability and accountability act hipaa hipaa protects patients medical information and workers health insurance when unemployed and sets guidelines surrounding health insurance 9 | |
what does the abbreviation hhs stand for | hhs stands for health and human services and refers to the u s department of health and human services which is a branch of the federal government that aims to promote and improve the health of all americans by providing a variety of health and human services and programs | |
what does the hhs do | the hhs is responsible for promoting and enhancing the health of the citizens of the united states of america it has over 100 programs that focus on health science care social services prevention and wellness all aimed at ensuring the well being of the american people who is the current hhs secretary the current hhs secretary is xavier becerra he is the 25th secretary of the department of health and human service and the first latino to hold the office 10the bottom linethe department of health and human services hhs has 12 operating divisions and over 100 programs to promote the health and well being of u s citizens the hhs also supports research in social services medicine and public health some of the divisions of the hhs include the centers for disease control and prevention cdc and the food and drug administration fda | |
what is the u s department of housing and urban development hud | the department of housing and urban development hud is a u s government agency created in 1965 as part of then president lyndon johnson s great society agenda to expand america s welfare state its primary mission is improving affordable homeownership opportunities to support the housing market and homeownership in inner city areas 1hud s programs are geared toward increasing safe and affordable rental options reducing chronic homelessness fighting housing discrimination by ensuring equal opportunity in the rental and purchase markets and supporting vulnerable populations understanding hudhud enforces the fair housing act and oversees the community development block grant program and the housing choice voucher program it also supervises other programs to assist low income and disadvantaged americans with their housing needs and it works with various government agencies and private organizations including community nonprofits and faith based groups to reach its goals 2following hurricane katrina hud became involved in disaster recovery in the gulf coast region 3the fair housing act prohibits discrimination in housing based on sex race color national origin religion family status and disability hud investigates any cases concerning the refusal to rent or sell a property denying someone a dwelling falsely stating that properties are unavailable and imposing different terms or conditions based on any of the aforementioned discriminating conditions 4hud is led by the hud secretary a member of the president s cabinet who is nominated by the president and confirmed by the senate the position is currently held by marcia fudge who took office on march 10 2021 1types of hud assistance programshud offers various assistance programs for those in need of housing financial assistance the office of housing is the largest office within hud and includes the federal housing administration as stated on the hud website the duties of the office include the community development block grant program allocates federal grant money to communities to develop neighborhoods that have decent affordable housing 6 these grants typically aid low and middle income residents so they can find suitable living environments near employers supermarkets or public transportation states cities towns communities and organizations apply for these block grants or for loan guarantees to aid in development projects 7the housing choice voucher program also called section 8 allows low income disabled or elderly citizens to choose a place to live regardless of whether the property exists as subsidized housing the property must meet certain requirements and applicants need to meet government standards to qualify 8local public housing authorities determine a moderately priced housing option based on local real estate prices before deciding the benefits that families or individuals can receive families then seek out a housing unit for the number of people who will live in the house duplex or apartment a family who is issued a housing voucher must find housing where the owner agrees to rent under the voucher program and the rental unit must meet standards of health and safety that are determined by the public housing agency pha 8the vouchers are administered by local public housing agencies phas that are funded by hud the pha pays the subsidy directly to the landlord on behalf of the tenant and the tenant pays the difference between the actual rent charged by the landlord and the amount subsidized by the program hud states that to be eligible for the voucher program the tenant s income may not exceed 50 of the median income for the area 8families can move from one housing unit to another because of income changes job status or the addition of family members the voucher program attempts to allow for mobility without losing housing benefits beneficiaries with vouchers sign leases with property owners that have this program with subsidized housing residents sign leases with property managers who oversee federally owned projects 8the office of public and indian housing pih exists to ensure access to safe decent and affordable housing the pih also works to create opportunities to help residents become self sufficient and economically independent 9hud established its office of public housing to help provide safe and decent rental housing for eligible low income families as well as the elderly and people with disabilities this includes access to single family homes as well as housing in multi unit properties an estimated 1 2 million households live in public housing units that are managed by entities overseen by hud 10the office of community planning and development cpd works to develop viable communities by promoting integrated approaches in providing decent housing suitable living environments and expanding economic opportunities for low and moderate income individuals and households the office achieves this goal by developing partnerships among the government and private sector organizations including those that operate on a for profit and non profit basis 11the office of policy development and research supports hud s efforts to create cohesive and economically viable communities by maintaining up to date information on the office is also tasked with conducting research on priority housing and community development issues the data generated is then used to help inform hud policy decisions hud user is an online informational resource for academics researchers policymakers and the american public the office of fair housing and equal opportunity fheo exists to eliminate housing discrimination promote economic opportunity and achieve diverse inclusive communities by leading the nation in the enforcement administration development and public understanding of federal fair housing policies and laws 13as stated on their website some of the laws that fheo implements and enforces include 13fheo is also responsible for investigating fair housing complaints conducting compliance reviews ensuring civil rights in hud programs and managing fair housing grants ginnie mae makes affordable housing a reality for low and moderate income households by helping to funnel capital into the housing market the ginnie mae guaranty program allows mortgage lenders to get a better price for loans in the secondary mortgage market lenders can use the proceeds to fund new loans which enables the mortgage market to maintain liquidity 14ginnie mae doesn t buy or sell loans or issue mortgage backed securities but it does guarantee investors the timely payment of interest and principal on mortgage backed securities that are backed by federally insured or guaranteed loans 14ginnie mae has never been the recipient of a government bailout 14hud oversees a number of other programs and offices including 15each of these programs and offices play a different role in ensuring fair and equal access to housing | |
what does the u s department of housing and urban development do | the department of housing and urban development is responsible for administering programs that provide housing and community development assistance while also ensuring access to fair and equal housing for all | |
are fannie mae and hud the same thing | fannie mae is a government sponsored enterprise that is a leading source of conventional mortgage financing in the u s this entity is separate from hud and performs a different function within the mortgage market | |
does hud make loans | hud does not offer home loans directly instead the department of housing and urban development works with a network of approved partner lenders to help homebuyers get the financing they need to purchase homes | |
how do you qualify for a hud loan | qualification for a mortgage loan offered through a hud program is based on many of the same requirements associated with non hud loans that includes meeting minimum credit score and income guidelines having a debt to income ratio within acceptable limits and meeting the down payment requirements bottom linethe department of housing and urban development serves an important role in ensuring that homebuyers are able to secure mortgage loans fha loans for example can make it easier to buy a home with a smaller down payment and or a lower credit score these types of mortgage options help to make homeownership more accessible overall |
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