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Meaning / Definition of

Quarter

Categories: Investing and Trading, Accounting, Forex,

The financial world splits up its calendar into four quarters, each three months long. If January to March is the first quarter, April to June is the second quarter, and so on, though a company's first quarter does not have to begin in January.The securities and exchange commission (SEC) requires all publicly held US companies to publish a quarterly report, officially known as Form 10-Q, describing their financial results for the quarter. These reports and the predictions that market analysts make about them often have an impact on a company's stock price.For example, if analysts predict that a certain company will have earnings of 55 cents a share in a quarter, and the results beat those expectations, the price of the company's stock may increase. But if the earnings are less than expected, even by a penny or two, the stock price may drop, at least for a time.However, this pattern doesn't always hold true, and other forces may influence (investor) sentiment about the stock.

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Definition / Meaning of

FTSE

Categories: Business and Management, Global, Stocks,

An abbreviation of the financial times stock exchange (Index), commonly referred to verbally as 'footsie'. There are various FTSE indices (indexes), including most notably the FTSE 100, which is the index of the top 100 shares on the london stock exchange, whose movement is regarded as an important indicator of national (and wider) economic health and buoyancy. The FTSE 100 represents about 80% of the market capitalization of all shares listed on the london stock exchange, which is interesting considering over 3,000 companies are listed in total. For Pareto enthusiasts (the '80-20 Rule') that's 3.3% of listed companies, accounting for 80% of total market value of companies listed on the london stock exchange, which is even by Pareto standards an extreme ratio of concentration. When economic commentators say the "...the footsie is up/down (a number of points)..." this is a reference to the relative movement of share prices among the companies listed in (usually) the FTSE 100. The 'footsie' is owned and operated by FTSE Group, which is basically a provider of economic information and data services, especially about stock and commodity exchanges. FTSE Group was until 2012 50% owned by Pearson Group (owners of the financial times newspaper group) and 50% by the london stock exchange, the latter buying full ownership from Pearson in 2012. It is not likely that the 'financial times' origins of the FTSE abbreviation will be strongly acknowledged in future, given its change of ownership.

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