A nominee is a person, bank or stockbroker in whose name securities are transferred in order to facilitate transactions.

This is a corporate action in which a company’s existing shares are divided into multiple shares whereby each shareholder receives more shares in direct proportion to the amount of shares they own on the record date. Stock splits normally happen when the price of a share is so high that many investors can not afford to buy it. Example; in a 10 for 1 split, each shareholder receives an additional 9 shares for each share he holds.

A financial institution is a money management company e.g. a bank that collects cash deposits from the public and invests or lends to borrowers. Some of these institutions have very large funds and can influence the prices of securities in the stock market considerably.

These are earnings not paid out as dividends but instead are reinvested in the core business or used to pay off debt.

Shares are said to be overvalued when the current price is not justifiable when measured by such benchmarks like the price to earnings ratio (P/E ratio). These are usually shares which have caught the investors’ fancy resulting in an emotional buying spree.