ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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OVERSOLD is the state of the market when much more selling occurs than is warranted by market conditions. If investors and speculators sell large amounts of securities, including short sales, over a period of time, at some point the market will become oversold and buying is likely to increase. Depending upon the degree of buying, prices will either stop falling or will rise. A rise in prices under these conditions is known as a technical rally.
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FUTURES CONTRACT is an agreement to buy or sell a specific amount of a commodity or financial instrument at a specified price on a specified future date. Futures contracts are traded on a commodity exchange and used both for speculation and hedging.
OTC see OVER THE COUNTER.