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Q: please tell me what a "dow jones transportation average" is

Category: glossary , Asked by: Haylie F. From United States

A: the "dow jones transportation average " is The Dow Jones Transportation Average is a price-weighted average of 20 transportation stocks traded in the United States. The average was started back in 1884. This index includes airlines, railways, trucking, and delivery companies. Visit dbFX


    do you know what "loss leader strategy" is?

    Category: glossary by Ally D. From Canada

    A business strategy in which a business offers a product or service at a price that is not profitable for the sake of offering another product/service at a greater profit or to attract new customers. This is a common practice when a business first enters a market; a loss leader introduces new customers to a service or product in the hope of building a customer base and securing future recurring revenue. The loss leader strategy is more than just a nifty business trick - it is a successful strategy if executed properly. A classic example is that of razor blades. Companies like Gillette essentially give their razor units away for free, knowing that customers will have to buy their replacement blades, which is where the company makes all of its profit. Another example is Microsoft's Xbox video game system, which was sold at a loss of more than $100 per unit to create more potential to profit from the sale of higher-margin video games.

    please tell me what "after tax operating income" is

    Category: glossary by Kadence U. From United States

    the "after tax operating income " is A company's total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes. Due to its non-GAAP nature, what is included and excluded in the measure differs, therefore, it is important to understand how the company arrived at the value. ATOI is similar to net operating profit after tax (NOPAT).

    do you know what the "logarithmic price scale" is?

    Category: glossary by P. W. From France

    a "logarithmic price scale " is A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs. The distance between the numbers on the scale decreases as the price of the underlying asset increases. This is the case because a $1 increase in price becomes less influential as the price heads higher since it now corresponds to less of a percentage change than it did when the price of the asset was at a lower level. Also referred to as a "log scale". Logarithmic price scales are generally accepted as the default setting for most charting services, and they're used by the majority of technical traders. Common percent changes are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price. Contrast this to "linear price scale".


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    please define a "risk capital"
    The money that a person allocates to investing in high-risk securities. Basically, this is capital that you can lose without having to sleep on the streets. Investors who speculate in options or futures contracts should only use risk capital. Visit Dukascopy

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