Lobster trap

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O. Severskaya: May I ask you a question? Where can you meet at the same time zombies, ostriches and pigs? The answer is simple: on the exchange. Or in the dictionary slang.

Exchange traders sometimes use words and phrases familiar only to initiates. Dmitry Kabanov compiled a dictionary of traders, who published the portal

Lobster trap

Bulls (Bulls) – optimistic market participants, expecting price increases to profitably sell their securities. They are compared to bulls because they hook the victim with horns from below and throw it up – the quotes move along the same trajectory. Bears are waiting for lower prices. In nature, a bear leans upon a victim and lifts it with its paws from top to bottom – hence the analogy. Bear Hug is needed when one company wants to buy shares of another at a very attractive price.

Pigs are greedy investors who, in pursuit of profit, often retreat from their own trading strategy and leave positions open even when all the facts speak of a trend reversal.

Unicorn (Unicorn) – usually a startup, worth more than $ 1 billion. In English literature there is also a creature with ten horns (Decacorn). So called companies with an estimate of at least $ 10 billion.

Gold Bug (Gold Bug) – investor, investing money in gold. Also called analysts recommending to buy gold. Killer Bees are consultants, most often investment banks, that help companies avoid unprofitable takeovers. By their actions, they resemble insects sting the enemy.

Turkey (Turkey) – an investment that did not meet investors’ expectations. Chicken is an extremely cautious investor who by all means tries to reduce his risks and chooses the most conservative instruments, such as government bonds. Ostriches (Ostriches) are called investors who ignore the bad news, in fact, buries his head in the sand.

Zombies (Zombie, as well as the Living Dead) is a company that is not able to fulfill its obligations, usually on the verge of bankruptcy, but still present on the market …

Let us leave all this exchange “zoo” for a while and see if it earned a lot. We will entrust bank accounts to Marina Koroleva, who will conduct a competent audit.

M. Korolev “How is it right: on the score E or on the score?” (Repeat). O. Severskaya: We will replenish accounts on the exchange. And we will continue reading the dictionary of Dmitry Kabanov’s stock terms.

Baby bonds (Baby Bonds) – those that are characterized by low nominal value or special taxation, if the parents save money to maturity of their children. For even children’s bonds to make a profit, we need a Quant (Quantitative Analyst, Quant) – a financial expert with deep knowledge in mathematics and programming, able to develop a trading algorithm.

Chinese Wall (Chinese Wall) – an information barrier erected in investment banks between departments. Employees are not allowed to exchange insider information about customers and transactions with each other.

Cockroach Theory – the conviction that one bad news about a company results in a sea of ​​negativity. After all, if you find in the house of only one cockroach, many of his fellows will immediately come after him.

Lobster Trap is one of the strategies to protect against unwanted absorption. The company introduces a condition under which large shareholders (with a package greater than 10%) are prohibited from converting any securities into new shares giving voting rights. They also catch lobsters when large ones are caught, while small ones are eliminated.

Macaroni Defense is another strategy for a company that wants to avoid moving under the control of a new owner. It places a large amount of bonds that must be repaid at a very high price if it is still absorbed. Bonds like swell like pasta during cooking – hence the name.

Lobster trap

Dead Cat Bounce is a slight increase in prices after a long fall, which nevertheless does not indicate a trend reversal. The expression arose due to the conventional wisdom that even after a fall from a deadly height, the cat allegedly bounces off the ground.

Santa Claus rally, or Christmas rally (Santa Claus Rally) – this is often the observed increase in stock prices in the period between the Catholic Christmas and the New Year. If traders at this time are armed with hockey sticks, this does not mean that they go to the Winter Classic game. A hockey stick (Hockey Stick) is a line of graphics that initially moves almost horizontally and then abruptly goes up or down. The horizontal part looks like a stick handle, and the diagonal part looks like its hook.

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