Glossary
Bid/Ask
Bid is the highest someone is willing to buy a stock for
Ask is the lowest the seller of a stock is willing to settle for
Brokerage
They are the Bougiousie of Wall Street. Brokers buy and sell stock on behalf of their clients for a commission, however, many brokers are becoming commission free.
Bull Market
When the stock market as a whole is appreciating in value
Cost of Living Agreement COLA
A contractual agreement by a compensating entity to adjust wages to inflation. In the case of Jordan Belfort, he has to cut his consumption as if inflation when down. In a COLA, your wages fall with inflation, vise versa. However, this was unspoken in Jordan Belfort's case.
Financial securities
A financial asset that can be traded on the market or privately.
Initial Public Offering (IPO)
The process of making a company public
Investment bank
The middle man. They connect high-net-worth individuals with private companies ready to take their company public.
Limited liquidity
A definite circulation of cash in the market of an asset, or in the market, causing an asset to lose value during its conversion to cash
Margins
The difference between revenues and costs over the revenue, stated as a percentage
market manipulation
The process of artificially changing the price of an asset in order to favor a corresponding position the perpetrator holds
Profit realization
The process of selling an asset that has made a profit, to get cold hard cash.
Over the counter(OTC)
Privately traded