If
a company is developing a new product or strategy it may be considered
a Special Situation Stock. Theoretically the stock should increase in
value as more if things go as planned.
SUPPORT LEVEL The
opposite of Resistance. If a stock does not close below a certain price
it is said to have found support at that level. If a stock trades between
$10.00 and $15.00 for a period of time but has never closed below $10.00
it said to have found support at $10.00 and resistance at $15.00.
VALUE INVESTOR An
investor who purchases stock because he perceives its price to be undervalued
when compared to the value of the firm's assets and earnings. Warren Buffet
is the premier value investor.
WINDOW DRESSING The
practice of fund managers to sell out losing positions before the end
of a fiscal quarter so that when reports are sent to investors it appears
that the portfolio has the best stocks. This practice can put short-term
pressure on the markets.
