Plain-language definitions for the terms you'll run into reading an Apex alert. This isn't a textbook. It's the shorthand a trading desk uses, explained without the jargon.
- Float
- The number of shares actually available for the public to trade, after excluding insider holdings, restricted stock, and other locked-up shares. A small float means less supply available to meet demand, which is a major reason certain small-caps move so hard.
- Market Cap
- Share price multiplied by total shares outstanding. It's a rough measure of a company's total value as priced by the market, not a measure of the cash it actually has.
- Shares Outstanding
- The total number of shares a company has issued, including insider and restricted shares. This grows every time a company issues new stock, which is how dilution happens.
- Dilution
- An increase in shares outstanding that shrinks each existing shareholder's slice of the company. Usually happens when a company raises cash by selling new shares instead of generating it from operations.
- Catalyst
- A specific, identifiable event (news, a filing, an earnings report, a contract) that gives the market a reason to trade a stock right now. Alerts are built around catalysts because they explain why a move is happening today rather than some other day.
- Resistance
- A price level where a stock has previously struggled to break through, because sellers tend to show up there. A breakout above resistance often triggers fresh buying.
- Support
- A price level where a stock has previously found buyers and stopped falling. A break below support often triggers fresh selling.
- Breakout
- A move where price pushes decisively through a resistance level on strong volume, often the trigger point momentum traders watch for.
- Gap
- A jump in price between one session's close and the next session's open, with no trading in between. Gaps usually reflect news that broke while the market was closed.
- Relative Volume
- How today's trading volume compares to a stock's typical average. A stock trading at five times its normal volume is showing unusual interest, which is one of the clearest early signs of a momentum move.
- Liquidity
- How easily a stock can be bought or sold without moving the price against you. Low liquidity means wide spreads and slippage, especially when you're trying to exit.
- Halt
- A temporary, exchange-ordered pause in trading, often triggered by extreme volatility or a pending material news announcement. Halts can happen on the way up or the way down, and trading can reopen sharply gapped in either direction.
- Short Interest
- The number of shares currently sold short (borrowed and sold, betting the price falls) relative to the float. High short interest against a small float can fuel a squeeze if buyers force short-sellers to cover by buying back shares.
- OTC Markets
- A network of markets for stocks that don't trade on a major exchange like the Nasdaq or NYSE. Many small and micro-cap names trade here, generally with lower liquidity and less disclosure than exchange-listed stocks.
- Uplisting
- When a company moves its stock from the OTC markets to a major exchange like the Nasdaq. Often treated as a bullish catalyst because it can bring in institutional buyers who won't touch OTC names.
- ATM Offering
- An "at-the-market" offering, where a company sells new shares directly into the open market over time, often quietly, whenever there's enough volume to absorb it. A common source of ongoing dilution.
- ELOC
- An equity line of credit, where an investor commits to buy shares from a company on demand, usually at a discount to market price, which the investor often resells quickly. Another common dilution mechanism.
- Warrant
- A contract giving the holder the right to buy shares at a set price in the future. Warrants add to the share count when exercised, which is a form of future dilution built into a company's capital structure.
- Convertible Note
- A loan that can convert into shares instead of being repaid in cash, sometimes at a floating rate tied to the stock price. Floating-rate converts can create a feedback loop where falling prices trigger more shares being issued, pushing the price down further.
- Reverse Split
- A move that consolidates multiple existing shares into one, raising the per-share price without changing the company's total value. Often used to meet exchange listing requirements, and frequently followed by fresh dilution once the float shrinks.
- Due Diligence (DD)
- The research a trader does independently before acting on any information, including reading filings, checking the float and share structure, and verifying a catalyst directly at the source.
- Promotion
- Paid coverage of a stock, funded by the company or a third party, designed to generate buying interest. Legal when properly disclosed under Section 17(b), but not neutral research, and something every reader should factor into how they weigh a stock's coverage.
- §17(b) Disclosure
- The disclosure required by Section 17(b) of the Securities Act of 1933 whenever a publisher is compensated to promote a security. It states who paid, and roughly how much, so readers can judge how neutral the coverage actually is.