A negotiable certificate representing a specified number of shares in a foreign company traded on a U.S. stock exchange. ADRs make it easier for U.S. investors to invest in foreign companies without directly buying shares on foreign exchanges.
The unique abbreviation assigned to an ADR for trading purposes, facilitating identification and trading on U.S. stock exchanges.
The fee charged by the depositary bank for converting foreign dividends into U.S. dollars and distributing them to ADR holders.
The ratio used to determine how many shares of the foreign company's stock can be exchanged for a specific number of ADRs or vice versa.
The practice of a company listing its shares on multiple stock exchanges, allowing it to reach a broader investor base and improve liquidity. ADRs enable cross-listing for foreign companies on U.S. exchanges.
The risk that changes in exchange rates between the foreign company's currency and the U.S. dollar may impact the value of ADRs for U.S. investors.
A financial institution in the home country of the foreign company that holds the actual shares of the company and interacts with the depositary bank to facilitate the creation and redemption of ADRs.
A legal contract between the depositary bank, the custodian bank, and the ADR holders, outlining the rights and obligations of each party in the ADR program.
A financial institution responsible for issuing and administering ADRs, including facilitating dividend payments, handling shareholder communications, and managing other administrative aspects of the ADR program.
The process by which dividends paid by the foreign company are converted into U.S. dollars and distributed to ADR holders by the depositary bank.
The adherence to regulatory requirements and standards in the foreign company's home country, ensuring transparency and compliance with local laws and regulations.
The lowest level of ADR program, allowing non-U.S. companies to list their shares on the U.S. over-the-counter market without significant regulatory requirements. Level I ADRs are subject to minimal disclosure requirements.
A type of ADR program that requires compliance with U.S. Securities and Exchange Commission (SEC) registration and reporting requirements. Level II ADRs are listed on a U.S. stock exchange and can be bought and sold like regular stocks.
The highest level of ADR program, involving a public offering and registration with the SEC. Level III ADRs are listed on U.S. stock exchanges and can raise capital for the foreign company through the sale of new shares to U.S. investors.
The criteria set by stock exchanges for companies to qualify for listing, including financial performance, corporate governance, and regulatory compliance. ADRs must meet these requirements to be listed on U.S. stock exchanges.
The total value of a company's outstanding shares, calculated by multiplying the current share price by the total number of shares. ADRs contribute to the market capitalization of the foreign company in U.S. markets.
A decentralized market where ADRs, especially Level I ADRs, may be traded directly between buyers and sellers without being listed on a formal stock exchange.
The number of shares represented by a single ADR. The ratio determines how many ADRs equal one share of the foreign company's stock.
A type of ADR where the foreign company has an agreement with a U.S. depositary bank to issue and administer the ADR program on its behalf.
The level of involvement and compliance with regulatory requirements by the foreign company in the ADR program. Sponsored ADRs typically have higher levels of involvement and are subject to more rigorous reporting requirements.
The specific conditions and requirements imposed by U.S. regulatory authorities for foreign companies wishing to establish sponsored ADR programs, including compliance with reporting standards.
The potential tax consequences for U.S. investors holding ADRs, including implications for capital gains, dividend income, and withholding taxes on foreign dividends. Investors should be aware of tax treaties between the U.S. and the home country of the foreign company.
A type of ADR initiated without the direct involvement or cooperation of the foreign company. Unsponsored ADRs are created by a depositary bank without the company's active participation.
The extent to which ADR holders have the right to vote on certain matters related to the foreign company, such as elections of the board of directors. Voting rights may vary depending on the level of the ADR program.
A blockchain platform for the development of decentralized applications and smart contracts.
The average price range a stock experiences within a specific period, often used to gauge volatility.
Trades that occur after the regular market hours, typically between 4:00 PM and 8:00 PM Eastern Time.
A decentralized finance (DeFi) algorithmic trading protocol that provides liquidity to decentralized exchanges.
An order that must be executed in its entirety, or not at all.
The highest historical price reached by a financial asset.
The lowest historical price reached by a financial asset.
An option where the strike price is equal to the current market price of the underlying asset.
The official currency of Australia.
Refers to the currency pair involving the Australian Dollar and the U.S. Dollar.
A quick way to inform others that you will be back later.
A significant price movement above a certain level of resistance or below a level of support.
The amount of capital required to open and maintain a particular options position.
A quick way to inform others that you will be right back.
The first and most well-known cryptocurrency, often referred to as digital gold.
A strategy of purchasing an asset when its price experiences a temporary decline.
Refers to the currency pair involving the British Pound and the U.S. Dollar.
The official currency of Canada.
A trading strategy that involves borrowing in a currency with a low-interest rate and investing in a currency with a higher interest rate.
The largest options exchange in the U.S., facilitating the trading of options contracts.
A strategy where an investor holds a long position in an asset and sells a call option on the same asset to generate income.
The official currency of Switzerland.
A brokerage firm providing trading services for equities and options.
An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.
A trading platform/software used for day trading.
Research and analysis conducted before making an investment decision.
A financial system built on blockchain technology that aims to recreate and improve upon traditional financial systems.
A cryptocurrency exchange that operates without a central authority or intermediary.
An option with a strike price significantly favorable compared to the current market price of the underlying asset.
Stocks with the highest average daily price range, indicating higher volatility.
Encourages individuals to conduct their own thorough research before making investment decisions.
The closing time of a trading session.
The public release of a company's financial performance, including revenue and profit, usually on a quarterly or annual basis.
A blockchain platform enabling the creation of decentralized applications and smart contracts.
The official currency of the Eurozone.
Analyzing a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.
The fear that others are making profitable investments and one might miss out on potential gains.
A trading strategy that involves selling after a rapid price increase.
Negative information or rumors spread to create fear and uncertainty in the market.
Used to qualify or emphasize a statement, often when providing information.
The global marketplace for trading national currencies against one another.
Used to inform someone about a piece of information.
The official currency of the United Kingdom.
Wishing someone success or good fortune.
Indicates a stock that was initially above the prior day’s close but has dropped below it.
Indicates an increase in price or account value.
A slang expression urging someone to leave or expressing that someone has left.
Wishing someone an enjoyable experience.
The highest price reached by a security during a particular trading day.
A term used in the cryptocurrency community to encourage holding onto assets despite market volatility.
A popular brokerage firm providing online trading services.
A fundraising method for new cryptocurrency projects, similar to an initial public offering (IPO) in the stock market.
Used to draw attention to something important that the reader may have missed.
Indicates uncertainty or lack of knowledge.
Indicates that the following statement is based on the speaker's memory and may not be entirely accurate.
Indicates a personal opinion on a matter.
Used to rephrase or clarify a statement.
An option with intrinsic value, meaning the option's strike price is favorable compared to the current market price of the underlying asset.
A measure of the market's expectations for the future volatility of an underlying asset, derived from option prices.
The official currency of Japan.
Refers to the currency pair involving the New Zealand Dollar and the U.S. Dollar.
A process used by financial institutions to verify the identity of their customers.
Provides detailed market data, including the best bid and ask prices, for a particular security.
The lower boundary in a Bollinger Bands chart, indicating potential oversold conditions.
Refers to stocks issued with a low number of shares, leading to higher volatility.
Holding a long position in an option that is in the money.
The lowest price reached by a security during a particular trading day.
An expression used to convey laughter or amusement.
Refers to the currency pair involving the U.S. Dollar and the Canadian Dollar.
Holding a long position in an option that is out of the money.
Stocks with a limited number of shares available for trading, often resulting in price volatility.
The midpoint between the national best bid and national best offer for an option.
A financial institution or individual that facilitates the buying and selling of financial instruments.
An order to buy or sell a security at the closing price, typically entered near the close of the trading day.
A unique digital asset, often representing ownership of digital or physical items.
The official currency of New Zealand.
Options based on the S&P 100 Index.
The total number of outstanding options contracts for a particular security.
An expression of surprise or shock.
Refers to positions or trades held overnight.
An option with no intrinsic value, meaning the option's strike price is not favorable compared to the current market price of the underlying asset.
A decentralized network where participants interact directly with each other without intermediaries.
Indicates a stock showing signs of upward movement after a period of consolidation.
The final hour of the trading day, often characterized by increased trading activity.
A standardized unit of movement in the foreign exchange market.
A margin system that bases margin requirements on the overall risk of a portfolio of positions.
The likelihood that a trade will be profitable based on statistical analysis or option pricing models.
A consensus algorithm used in blockchain networks, where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake."
A consensus algorithm used in blockchain networks, where validators (miners) solve complex mathematical problems to validate transactions and create new blocks.
Trades that occur before the regular market hours, typically between 4:00 AM and 9:30 AM Eastern Time.
An informal expression conveying proper acknowledgment or respect.
Indicates that the current price is below the closing price of the previous trading day.
A price level at which a security often faces selling pressure, preventing it from moving higher.
Indicates a stock that was initially below the prior day’s close but has risen above it.
A measure of the return generated on invested capital.
A measure of the profitability of an investment, calculated as the gain or loss relative to the initial investment.
The ratio of potential profit to potential loss in a trade.
A corporate action that reduces the number of a company's outstanding shares, increasing the share price proportionally.
Options based on the S&P 500 Index
Levels on a chart where the price of an asset might experience a pause in its movement or change direction.
The sale of a borrowed security with the expectation of buying it back later at a lower price.
A rule that prevents short selling on a downtick, designed to prevent excessive downward pressure on a stock's price.
Closing out an existing options position by selling the contract.
A strategy where an investor holds a position in both a call and a put option with the same strike price and expiration date.
Opening a position by selling an options contract.
A conditional order to buy or sell an option at a specific price or better.
A strategy where an investor holds a position in both a call and a put option with different strike prices but the same expiration date.
A price level at which a security often faces buying interest, preventing it from moving lower.
A measure of how the implied volatility of options varies with different strike prices.
The settlement date for securities transactions that occur on a trade date.
The settlement date for most securities transactions, occurring two business days after the trade date.
The settlement date for certain securities transactions, occurring three business days after the trade date.
The analysis of historical price and volume data to forecast future price movements.
Expressing gratitude for anticipated assistance or information.
A trading platform owned by TD Ameritrade.
The remaining time until an options contract expires.
A casual way of saying goodbye with the intention of talking again in the future.
Expressing gratitude or appreciation.
The upper boundary in a Bollinger Bands chart, indicating potential overbought conditions.
The official currency of the United States.
The CBOE Volatility Index, which measures market expectations for future volatility.
A warrant where the current market price is higher than the exercise (strike) price.
A warrant where the current market price is lower than the exercise (strike) price.
A trading strategy involving writing options and using the premium received to buy other options.
Options based on the Mini S&P 500 Index.
Used to represent an unknown or generic stock in examples or discussions.
Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.
Refers to the currency pair involving the U.S. Dollar and the Japanese Yen.
A polite response to someone expressing gratitude.