This Independence Day, don’t just stand by idly watching the fireworks and listening to Joe Wall Street go on and on. Chime in with these bits of America-themed jargon and, hey, you might just create some fireworks of your own!
In the red — Red is the color on a stock trading screen when a stock goes down on the day. This is when a major stock index, or host of indexes, have more stocks losing value on the day than those gaining in value.
White Knight — This is a company that looks to acquire other companies that are in trouble. In doing so, they are perceived as the valiant knight that rides in and saves the day….usually by firing tons of people first.
Blue Chip — Mighty companies of industry in the past, such as Microsoft and General Electric, are called “Blue Chip” companies. They may not be producing crazy profits but do produce consistent profits, and therefore pay good dividends. These are your old people stocks, also commonly referred to as “widow and orphan stocks.”
Goldbug — A “Goldbug” is an investor who thinks the price of gold will only go higher because inflation is making our paper currency worthless.
Flight to quality — This one reminded us of our national symbol, the eagle, and it occurs when investors dump risky stocks and buy (or fly to) Treasury bills, or bonds. It also applies when investors ditch very risky stocks like tech start-ups and buy quality stocks like Apple.