Purchasing Managers Index

Definition:

A popular index released in Manufacturing ISM Report by the Institute for Supply Management on the first of the month. The index reflects percentage of purchasing managers that reported better business conditions compared to the previous month. A reading above 50% indicates expansion in manufacturing sector; below 50% indicates the sector's contraction.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Contingency order

In the context of general equities, order to buy one security, if the trader can sell another, usually given that certain price limits or conditions reach a certain level. Swap, switch order.

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