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Glossary

  1. A brokerage account in which investments (stocks, ETFs, mutual funds and options) are held.

  2. An investment, retirement, education, trust, client or other type of account or a Watch List.

  3. The status of an option when the strike price of the option equals the current market price of the underlying stock.

  4. The percentage increase or decline in value of an investment measured per year. The AAR is calculated by multiplying the gain or loss percentage of an investment by the number of days it is held over the number of days in a year. Each position's AAR is displayed in the Summary View on the ExitPoint® My Portfolio page. (Compare to definition of CAGR.)

  5. ExitPoint's innovative Beat the Market Strategy allows you to set a Sell Alert based on a comparison of a security's performance against a major stock index and designating the percentage by which it must outperform that index over a time period that you select. Example: using the Beat the Market Strategy, you set a Sell Alert to trigger if your stock has not outperformed the Dow Jones Average by at least 10% over the last 26 weeks. If the Dow has risen by 5% during that time, your stock must have risen by at least 15% to avoid triggering a Sell Alert (i.e., 10% more than 5%). Users can customize this strategy by comparing an individual security's performance against the DOW, the NASDAQ or the S&P 500 over a variety of  time periods (1, 4, 13, 26, or 52 weeks, or year-to-date), and choosing the percentage by which they will require the security to outperform that index over the specified time period.

  6. For long positions, ExitPoint® automatically remembers the highest price your position has reached since you added it to your ExitPoint portfolio. We refer to this as you Best Price because it is the best price achieved for the position in terms of your personal gain or loss since ExitPoint started tracking it. For short positions, ExitPoint® automatically remembers the lowest price your position has reached since you added it to your ExitPoint portfolio.

  7. The second of four ExitPoint® strategies, the Break Even Strategy specifies that a Sell Alert will be triggered if the price of a security, after having risen a specified percentage above its Entry Price, then falls below a second lower percentage that is only slightly above the Entry Price of the investment. The Break Even Strategy is designed to ensure that an investment already showing a healthy gain will never be held too long so that the gain turns into a loss.

  8. An investment's Compound Annual Growth Rate, or CAGR for short, is a measure of the year-by-year growth rate of that investment over time, assuming a consistent rate of return. CAGR looks at the growth of an investment (current price less purchase price) over the holding period for the investment and calculates the average growth rate, assuming the investment grew at a steady rate over the measurement period. By taking the average growth rate of an investment, the CAGR provides a smoothed rate of return and a more accurate picture of investment performance over time than average annual returns. Each position's CAGR is displayed in the Summary View on the ExitPoint® My Portfolio page. For further information about how an investment's CAGR is calculated, click here.

  9. The Strategy Setting that is automatically applied to calculate your ExitPoints. The Default Strategy is intended to cover all situations where you don't have a specific alternative strategy in mind for a particular investment.

  10. The annual rate of return on an investment calculated by dividing the cash dividends received over the last twelve months by the purchase price paid for the investment. For example, if you received $200 of cash dividends over the last twelve months for 100 shares of a stock you purchased for $40 per share, your dividend yield would be 5.0% ($200 / $4,000).

  11. An ExitPoint® feature that allows you to have your ExitPoint® reports delivered automatically right to your Email in-box (including remote Email devices) without the need to access the Internet. Email Alerts can be created to automatically contact you on a time-based schedule (Time Alerts), or on an event-based schedule (Event Alerts). You can create as many alerts as you like and have each alert sent to up to two Email addresses of your choice.

  12. The price at which an investment is purchased, or in the case of a Watch List, the hypothetical price from which the performance of an investment is tracked.

  13. ETF

    Exchange Traded Funds or ETFs are baskets of securities that are traded like individual stocks with daily price fluctuation. The most common examples of ETFs are SPIDERS (Symbol SPDR) that track the S&P 500 Index, DIAMONDS (Symbol: DIA) that track the Dow Jones Industrial Average, and QUBES, (Symbol: QQQQ) that track the Nasdaq 100 Index. Some primary advantages of ETFs are that they provide the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share.

  14. In ExitPoint®, an Email Alert created on an event-based schedule that will automatically deliver to your Email in-box a summary of information from your portfolio or from your ExitPoints that satisfy the criteria you specify. Event Alerts can be created containing numerous criteria, including Price Alerts, ExitPoint Alerts (new Sell Alerts or new ExitPoints), Performance Alerts, Volume Alerts, Moving Average Alerts, Technical Alerts and Option Alerts.

  15. The price per share at which it is recommended you close a position. For long positions, it is the price it which it is recommended you sell an investment. For short positions, it is the price at which it is recommended you repurchase the investment.

  16. The current tally displayed in your Portfolio Summary of the number of positions presently in each ExitPoint strategy. If you only use the Trailing Stop or Fixed Stop Strategy Settings for your positions, the Scorecard will not change based on price movement . However, the Scorecard will periodically change for those using ExitPoint's more sophisticated Strategy Settings (Stop Loss, Break Even, Trailing Profit, Target, Beat the Market and Moving Average Trailing Stop Strategies), as your investments move from one strategy to the next based on upward price movement.  Below is an example of the ExitPoint Scorecard for a particular portfoio showing the number of positions currently in each strategy.

     

     

     

     

  17. Any one of four strategies, Stop Loss, Break Even, Trailing Profit or Target Price used to calculate the ExitPoint of an investment. These strategies work in combination with one another and are based on a sophisticated series of stops that calculate the ExitPoint of an investment using ExitPoint's proprietary algorithm.

  18. A graphical indication in the ExitPoints View that a New ExitPoint has been triggered.

  19. For purchased options, the status of a call when the option's strike price is below the current market price of the underlying stock, or the status of a put when the option's strike price is above the current market price of the underlying stock. For sold options, the status of a call when the option's strike price is above the current market price of the underlying stock, or the status of a put when the option's strike price is below the current market price of the underlying stock.

  20. An order to buy a designated number of shares at or below a specified price or to sell a designated number of shares at or above a specified price.

  21. The purchase of securities such as stocks whose value rises as the market price rises and declines as the market price declines. In the case of options, the purchase of put or call option contracts.

  22. An order to buy or sell a designated number of shares at the best available price.

  23. The current price of a security in the market. The market price is displayed in ExitPoint's Quote column.

  24. As an investment rises in price, the point at which it moves from one ExitPoint® Strategy to another higher Strategy, signaling that a New ExitPoint (higher than the prior ExitPoint) has been triggered. For short positions, the Move Point works in reverse and moves to a New ExitPoint as the as the investment declines in value.

  25. The average price of a security over a specified time period. Moving averages are used to measure the trend direction of a security because it tends to smooth out daily price fluctuations. The most common types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA) which places more weight on recent prices and less weight on older prices. ExitPoint® has several Portfolio Views that display SMAs and EMAs over various time periods.

  26. A Moving Average Crossover occurs when one moving average crosses over another moving average of a different, and typically longer, time period. Moving average crossovers can also measure when a security's current price crosses over a moving average. A moving average crossover tends to be seen as a bullish trading signal by traders. A Moving Average Crossunder operates in the reverse and is seen as a bearish trading signal. ExitPoint® provides a Moving Average Crossover View that signals crossovers and crossunders comparing various time periods.

  27. ExitPoint's innovative Moving Average Trailing Stop Strategy will trigger a sell alert when the current price of a security falls a specified percentage below the Moving Average price of that security. Using a moving average as a point of comparison for trailing stops rather than the actual high price of a security tends to smooth out the effect of dramatic short-term price increases and declines that can trigger a premature exit. The longer the time period of the moving average selected, the less effect that day-to-day price increases and decreases in the underlying security will have on its ExitPoint.  Users of this strategy can select moving averages ranging from 5 days to 250 days (a full trading year) and simply enter the percentage stop below that moving average as the alert trigger.

  28. An alert that the current price of a security has risen sufficiently to move you into a higher ExitPoint® Strategy geared more toward protecting profits than preventing losses. A New ExitPoint for long positions can only occur when a security is rising in price. For short positions, the principle works in reverse triggering a New ExitPoint as the as security declines in value. A New ExitPoint is symbolized by a Green Flag in the ExitPoints View and is also displayed in the ExitPoint Scorecard.

  29. For purchased options, the status of a call when the option's strike price is above the current market price of the underlying stock, or the status of a put when the option's strike price is below the current market price of the underlying stock. For sold options, the status of a call when the option's strike price is below the current market price of the underlying stock, or the status of a put when the option's strike price is above the current market price of the underlying stock.

  30. The group of long and/or short positions held in an account.

  31. In ExitPoint®, a long or short stock or ETF, or a mutual fund.

  32. A graphical indication in the ExitPoints View that a Sell Alert has been triggered.

  33. A stock, ETF, mutual fund or option. (More generally, the definition of securities can also include debt obligations such as bonds or rights to ownership such as derivatives.)

  34. An alert that the current price of an investment has fallen below its ExitPoint. For short positions, it is an alert that the current price of the short has risen above its ExitPoint. A Sell Alert is symbolized by a Red Flag in the ExitPoints View and is also displayed in the ExitPoint Scorecard.

  35. The sale of borrowed securities such as stocks with the expectation that their market price will decline. Because the borrowed securities must eventually be returned to the broker, the investor must buy them back and will profit if he can do so at a lower price than the price he received on their prior sale. A short position in stocks is commonly known as a Short Sale. In the case of options, a short position refers to the selling of a put or call (also known as writing an option).

  36. An unfavorable price movement in a security's price between the time an order to sell is placed and the time that order is filled.

  37. The "Status" column in ExitPoint provides a quick graphical reference to whether your security is in a gain position (green thumbs up)  or in a loss position (red thumb down).

  38. An abbreviated term for Stop Loss Order.

  39. In ExitPoint®, an order placed with a broker to sell a security when it falls to a certain price below its current price. A Stop Loss Order can be set at a specific price or at a specified percentage below the current price of a security. A Stop Loss Order becomes a market order when the security reaches the specific price. The purpose of a Stop Loss Order is to limit losses or to protect profits.

  40. The first of four ExitPoint® Strategies, the Stop Loss Strategy is the strategy assigned to all new positions added to your portfolio and specifies that a Sell Alert will be triggered if the price of the security falls a specified percentage below its Entry Price. The Stop Loss Strategy is designed to prevent you from holding onto an investment that plummets in value by triggering a Sell Alert when the investment has declined in value below its Entry Price by the specified percentage.

  41. For Long Positions, the percentage below a certain price by which an investment's ExitPoint is calculated. For Short Positions, the percentage above a certain price by which an investment's ExitPoint is calculated. ExitPoint® provides preset Strategy Settings for Default, Aggressive, Short-Term or Long-Term strategies or allows you to set your own Custom strategy.

  42. The price that an investor hopes a stock or other investment will reach.

  43. The fourth of four ExitPoint® Strategies, the optional Target Price Strategy allows users to specify price appreciation goals in dollars per share or percentage appreciation. If the price is reached, ExitPoint® will move from the Trailing Profit Strategy into the Target Price Strategy, tightening the percentage spread below the current price at which ExitPoint® will trigger a Sell Alert. If no Target Price is selected, ExitPoint® will trigger a Sell Alert for securities that have appreciated sufficiently to be within the Trailing Profit strategy should they decline by the specified percentage for that strategy below their current price.

  44. In ExitPoint®, an Email Alert created on a time-based schedule that will automatically deliver to your Email in-box a summary of your portfolio or your ExitPoints. Time Alerts can also be customized to limit the information sent to you based on the criteria you designate. Time Alerts can be created to alert you at specific times of the day or at specific time intervals.

  45. The third of four ExitPoint® Strategies, the Trailing Profit Strategy is designed to ensure that you will always profit from an investment that has already appreciated in value by a meaningful amount rather than hold onto it too long, turning a solid gain into a potential loss. Unlike the Stop Loss Strategy or the Break Even Strategy, the Trailing Profit strategy calculation is based on the current price which fluctuates rather than the Entry Price of an investment which does not. Therefore, while the ExitPoint of an investment in any strategy will never decline, the ExitPoint of an investment in the Trailing Profit strategy will continue to rise as the price of the investment rises. Because of the differences in the way the Trailing Profit formula is calculated, you are likely to see more frequent Green Flags, signaling new ExitPoints, than with the Stop Loss or Break Even strategies.

  46. A Stop-Loss Order that is set at a specified percentage below the market price rather than at a specific price. The trailing stop order price can rise as the price of the underlying investment rises but it can never fall.

  47. An independent strategy used in place of the four conventional ExitPoint® Strategies, the Trailing Stop Strategy is designed to allow you set an ExitPoint that is a specified percentage below the current price regardless of whether it is in a gain or loss position. Like the Trailing Profit Strategy, the ExitPoint of an investment in a Trailing Stop strategy will never decline and will also continue to rise as the price of the investment rises. Use of the Trailing Stop Strategy is most appropriate when: (1) you add an investment to your ExitPoint® portfolio that is already in a loss position (which normally would trigger a Sell Alert under the conventional ExitPoint® Strategies), and (2) you want to set an ExitPoint that will prevent further declines greater than the specified percentage. but will still allow the investment to rise in value.

  48. A list of stock, ETF or mutual fund positions that are monitored but not actually owned.  

  49. In ExitPoint®, a feature that allows you to compare how the securities you sold would have continued to perform had they not been sold. This is a very useful feature that allows investors to easily analyze their successes and failures and to improve upon their selling strategies accordingly.