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Bonds Videos 389 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
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What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Kickbacks?
1 Views

What are kickbacks? Well, they're things we don't get for working at Shmoop, that's for sure. Hit play to find out more.

Finance: What are At the Money, In the Money, Deep in the Money, and Out of the Money?
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What are At the Money, In the Money, Deep in the Money, and Out of the Money? At the money happens when a stock is trading at an option’s strike...

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Finance: What Does "Buy Minus" Mean? 3 Views


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Description:

What does “Buy Minus” mean? Buy minus orders are used when investors think a stock will drop in price for a short period of time and plan to profit from that drop. The buy minus order tells the broker to purchase stock at a price that’s lower than the current trading price in order to benefit from what they think will be a brief decrease in price.

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English Language

Transcript

00:00

Finance a la shmoop what does buy minus mean? buy minus is a trading limit or rather a

00:10

trading rule given by a client wanting to acquire stock when it goes on flash

00:15

sale think Macy's white-flower day sale meets a bolt of lightning you know so [Sale banner outside Macy's and lightning flashes]

00:20

how's that work well Bobby bargain hunter sees the

00:23

highly volatile whatever dot-com trading at 8250 a share but notes that in the

00:28

last week it has been as high as 88 and as low as 75 Bobby wants to be long the

00:35

stock ie own it but doesn't want to pay retail price for it ie a "market

00:40

order" would just buy that stock at whatever price its trading at this [Market price appears]

00:45

moment so he puts in a buy minus order with a limit of 72

00:51

if the stock suddenly gaps down to that level he'll be the proud new owner of a [Bobby with a pile of stock]

00:55

hundred shares have whatever.com and if it doesn't well then Bobby bargain

00:59

hunter will have to shop elsewhere for bargains yeah this guy's such a big

01:03

bargain hunter he even hackles at restaurants can you believe that [Waiter approaches Bobby with the check]

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