Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
The level of sales at which contribution exactly covers fixed costs and profit is nil.
The point past which a high-fixed-cost business becomes dramatically profitable, and below which it bleeds.
The increase in risk taken once a position or a portfolio is below its purchase price, in order to return to it.
The mirror image of the house money effect, produced by the same line — your own purchase price. Above it money feels like the market’s; below it, it feels owed.
The price at which participants who bought since a reference point are collectively flat.
Underwater holders sell into the first rally back to their cost. That is what creates resistance there.
A price zone where buying interest has repeatedly been sufficient to halt declines.
A floor made of memory — people who regret selling there and people who want out at break-even.