Ten Financial Terms You Didn't Know You Needed To Know

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Cockroach Theory: A theory that bad news to the public usually means there is more bad news behind the scenes, which likely will come out eventually. Also can refer to industry trends whereby one company goes under and other similar companies will follow. 

Chasing Nickels Around Dollar Bills: The practice of big companies trimming small, trivial costs (like candy in the lobby) instead of big, serious costs (like the entire research department.)

Godfather Offer: An offer than cannot be refused – typically a tender offer pitched so high that management of the target company is unable to discourage shareholders from accepting it

Smurf: Money launderer, or one who seeks to evade scrutiny from government agencies by breaking up a transaction involving a large amount of money into smaller transactions that are below the reporting threshold

Jennifer Lopez: An informal term that describes what happens when a security reaches a low, then gradually starts to go up again. On a graph, it looks like a curve at the bottom, which is why investors named it after the admirably round-bottomed singer

Zombie Debt: A type of bad debt that is so old a person may have forgotten they owed it in the first place

Clowngrade: An upgrade or downgrade by a stock analyst that is considered foolish.

Triple Witching: This is sometimes referred to as ‘freaky Friday,’ and  occurs on the third Friday of every March, June, September and December when stock options, stock market index options and stock market index futures all expire on the same day. 

Dead Cat Bounce: A small, short-lived rise in the price of a falling security, such as a stock. Even a falling dead cat will bounce when it hits the ground

Eat Your Own Dog Food: The basic premise is that if a firm expects paying customers to use its products or services, it should expect no less from its own employees. Not using its own products for internal operations may imply that a company does not believe its products are best-of-breed, despite its public proclamation of the fact, and that it has more confidence in a rival's offerings.

Resources

  1. https://www.investopedia.com/articles/investing/062615/investopedias-oddest-business-investing-terms.asp

  2. https://theweek.com/articles/464746/17-weird-finance-buzzwords-explained

  3. https://www.montycampbell.com/article/13-strange-economic-and-investing-terms-explained-simply-so-that-anyone-can-understand-them/

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