SEC and Other Security Issues:

lossary Of Terms

Ask Price
The ask is the price the seller is (surprise) asking for his or her stock — at what price he or she wants to sell it. Reality is just the opposite – if you are selling you will receive the Bid Price.

Bid Price
The bid is the price a buyer is willing to pay for a security; the ask is the price for which a seller is willing to sell. Again, reality is just the opposite – if you are buying share you will have to pay the Asking Price.

Company Shares

      • Authorized number of shares. When a company is incorporated, they must define the total shares to be authorized per the articles of incorporation. These shares can be issued or held in reserve for future issuance, i.e., stock options, acquisitions, etc.
      • Outstanding shares. This is the actual number of common shares that are issued by the company and available for trading and used to calculate the market capitalization, (Market Cap) which is the total shares outstanding times the current market price of the shares.

We like to define leverage as getting the maximum return with the least amount of your investment capital at risk.

The absence of sufficient trading volume to execute your trades, and/or a large spread between the bid and ask prices.

Limit Orders

      • If buying: you are committing to pay no more than a specific price per share to execute your order.
      • If selling: you are requesting to receive no less than a specific price per share on your trade.

We ALWAYS suggest you use Limit Orders  for trading the most of the small OTC and pink sheet companies trading in the marijuana/cannabis space as well as the small Canadian shares.

Market order
You are agreeing to pay whatever the current market price is and if selling you are agreeing to accept the current market.  A market order is NEVER advisable for trades in the small Canadian shares or thinly traded OTC or pink sheet companies. ALWAYS use Limit Orders. 

Market capitalization
The market capitalization for any company is the total shares outstanding times the price of the common shares.

Other Resources For Definitions:
Nasdaq – Glossary of Investment Terms