Mark Berch:Combination strategy
Fairness opinion
An investment banker's professional opinion as to the price an acquiringfirm's is offering in a takeover or merger.
Inverted market
A futuresmarket in which the nearer months are selling at price premiums to the more-distant months. Related: Premium.
W-type bottom
A double bottom pattern in a price history that looks like the letter W. See: Technical analysis.
Mark Berch:Combination strategy
A strategy in which a put and call with different strike prices and the same expiration are either both bought or both sold. Related: Straddle
Barometer
Economic and market data that represent an overall trend. The Dow Jones Industrial Average is an example of a stock market barometer.
Exchange risk
The variability of a firm's value that results from unexpected exchange rate changes, or the extent to which the present value of a firm is expected to change as a result of a given currency'sappreciation or depreciation. Mark Berch
Leg
A prolonged trend in stock market prices, such as a multiple-period bull market; or, an option that is one side of a spreadtransaction. See: Lifting a leg.