Securities Training Corporation
Terms in this set (365)
An individual with 1 million net worth or $200,000 annual income.
A person appointed by the court to handle the assets and liabilities of a family member.
A method of eliminating a bond issue as an obligation of the issuer.
The fee paid to an investment adviser as compensation for managing a portfolio of securities the fee is usually based on a percentage of assets under management..
A person who is in the position to influence management policies due to equity ownership rather than an official position.
The secondary market. Used in reference to trading in a new issue.
Government securities issued by entities other than the U.S. Treasury.
A securities firm or individual acting on behalf of a client.
All or none (AON)
A type of order where the client wants the entire order executed or none of it.
A statistical measure of a securities price volatility caused by favors other than the stock market as a whole.
Alternative Minimum Tax
A tax designed to prevent wealthy investors from using tax shelters to avoid other income taxes.
A procedure which gradually reduces the book value of an intangible asset through periodic charges to income (Found on the balance sheet)
The formal financial statement issued yearly by a oorporation.
An annuitant is a person who collects the benefits of an annuity or pension.
process of converting an annuity into a series of periodic income payments.
An annuity is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time
Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price
An amount on a loan, cumulative preferred stock or any credit instrument that is overdue.
Ask is the price a seller is willing to accept for a security, which is often referred to as the offer price.
An assessed value is the dollar value assigned to a property for to measure applicable taxes.
A transfer of an individuals rights or property to another person or business.
Assumed Interest Rate
The rate of interest or growth rate, selected by an insurance company.
An order specifying that a trade is to be executed at the close of the market, or as near to the closing price as possible.
a situation where option's strike price (price where a specific derivative can be exercised) is identical to the price of the underlying security.
The system of trading securities through brokers or agents on an exchange such as the new York stock exchange.,
The maximum number of shares that a corporation is legally permitted to issue.
The length of time the principal of a debt issue is expected to be outstanding.
Various ways of measuring the securities price.
a fee that investors pay when selling mutual fund shares.
A balanced fund combines a stock component, a bond component, and sometime a money market into one portfolio.
Provides information on what the company owns (its assets) and what it owes (liabilities), and the value of the business to its stockholders (shareholders equity)
Balance Sheet Formula
Total Liabilities+Stockholders Equity= Total Assets
A repayment schedule for a bond issue where a large number of bonds comes due at one time.
A short-term debt instrument issued by a company that is guaranteed by a commercial bank.
An option strategy seeking maximum profit when the price of am underlying security declines.
A fixed-income security that is owned by the holder, rather than a registered owner.
A statistical method or a measure of volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. High BETA stocks have more risk and therefore higher return.
Bid and Asked
A two-way price quotation that indicates the best price at which a security can be sold and bought at a given point in time. Smaller the spread the more liquid it is.
A document used to submit a bid to an issuer of a competitive municipal bond under writing.
A limited partnership or stock offering with no stated goal for the funds that are raised from investor.
A large order of the same security to be bought or sold by institutional or other large investors.
A record of trades and the details of the trades made over a period of time (usually one trading day)
Blue Chip Stock
the stock of a large well established and financially sound company that has operated for many years. Has a market cap in the billions
Bond Equivalent Yield
allows fixed-income securities whose payments are not annual to be compared with securities with annual yields.
Book value of an asset is carried on a balance sheet and is calculated by taking the cost of an asset minus the accumulated depreciation.
A situation where an investor closes a position without experiencing a gain or loss.
A price movement of a security through an identified level or resistance
The dollar level of an investment in a mutual fund at which a purchaser qualifies for a sales charge reduction.
A broker is an individual or firm that charges a fee or commission for executing buy and sell orders by an investor.
A securities firm acting as agent on behalf of anothers security firm.
Money borrowed by brokers from banks or other brokers for a variety of uses.
the fluctuation in economic activity, that an economy experiences over a period of time. Expansion=economic growth
When an investor is forced for repurchase shares, because the seller did not deliver the securities in a timely fashion, or did not deliver them at all.
Buying Power (Excess Equity)
The total cash held in the brokerage account plus maximum margin available.
An option or future spread established by simultaneously entering a long or short position on the same asset but w/ different delivery months.
a time on an exchange when buyers set a maximum price that they are willing to pay for a given security , and sellers set a minimum that they are willing to accept.
A bond that can be redeemed by the issuer prior to its maturity.
A loan provided to a brokerage firm and used to finance margin accounts.
The price at which a bond of a preferred stock can be redeemed by the issuer.
Capital Asset Pricing Model (CAPM)
a model that describes the relationship between systematic risk and return for assets/stock.
when the cost to acquire an asset are expensed over the life of that asset rather than in the period it was incurred..
an accounting method to delay the recognition of expenses as a long-term asset.
The risk an investor faces that he or she may lose all or part of the principal amount invested.
equity that cannot otherwise be classified s capital stock or retained earnings.
Cash Asset Ratio
The current value of marketable securities and cash, divided by the company's current liabilities.
the net amount of cash and cash-equivalents moving into and out of a business.
certificate of deposit
a money-market instrument issued by banks.
An individual who uses charts or graphs of a security;s historical prices or levels to forecast its future trends.
Class of Options
All option contracts of the same type (puts or calls)
Closed End Indenture
A bond contract tat guarenteets that the collateral used to back the bond issue be used to back another bond issue.
The sale or purchase of an option contract to eliminate or undo an existing option position.
A metic which shows the current state of economic activity within a particular area. It shows the current state f the economy.
Property or other assets that a borrower offers a lender to secure a loan.
an unsecured, short term debt instrument issued by a corporation, typically for the financing of account receivable. Sold at a discount.
Commodity Future Contract
A commodity futures contract is an agreement to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future.
A security that represent ownership in a corporation.
A security with an added layer of protection. Preferred stock holders get money before common stock holders if a corporation goes bottom up.
Competitive Issue (Bid)
A competitive bid or issue is a step in the initial public offering process where by an underwriter submits a sealed bit to a company that is making its first issue of a stock.
Constant Dollar Plan
An investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price.
Consumer Price Index
a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
The opposing broker in a broker-dealer to broker-dealer securities transaction.
the price per share at which a convertible security, such as corporate bonds or preferred shares, can be converted into common stock.
the conversion ratio in the number of common shares received at the time of conversion for each convertible security.
A convertible security is an investment that can be changed into another form. The most common convertible securities are convertible bonds or convertible preferred stock, which can be changed into equity or common stock.
A written document detailing the major components such as its objectives.
The original value of an asset for tax purposes. It is usually the purchase price, adjusted for stock splits, divides and return of capital distributions.
A promise in an indenture, or any other debt agreement, that certain activities will be carried out.
A short option position in which the investor has another investment position that will meet the obligation of the option contract.
Any person who has lent money, goods, or services.
The risk that he issuer of a security may default on interest or principal payments.
The situation in which government borrowing forces interest rates to go up, squeezing the private sector from the credit markets.
Preferred stock having a provision stating that omitted dividends must be paid before any other future dividends.
Currency and Monetary Instrument Reports
When a single days cumulative transportation of cash into or out of the U.S. exceed $10,000.
Those assets of a company that have a reasonable expectation of being realized in cash or sold within one year.
Money owned and payable by a company usually within a year.
a test of a corporations liquidity, found by dividing current assets by current liabilities.
a securities annual income divided by its current market price
A person or financial institution that has charge or custody of securities or property of another.
the bank designated by a mutual fund to hold teh cash and securities of the fund..
Stocks that are strongly affected by the business cycle.
A firm that buys and sells securities for its own account rather than as an agent.
In a customers margin account, that portion of the purchase price of stocks or bonds that is covered by credit extended by the broker to the margin customer.
Debt to Equity Ratio
the ratio of those securities that compares those securities that compares fixed charges for a corporation to the company's common stock.
a brokerage account in which the broker lenders to customer cash to purchase securities
An expense allowed by the IRS in calculating tax liability.
the failure to pay interest or principal on a loan or security when due.
a provision that voids a bond or loan when the borrower sets a side cash or bonds sufficient enough to service the borrower's debt.
A stock that is resistant to changes in general economic activity.
A contraction in the money supply of circulated money within an economy.
The postponing of trading of an issue on a stock exchange beyond the normal opening of a day's trading because of market conditions that have been judged by the exchange officials to warrant the delay.
A deposit in a bank where the depositor retains the right to withdraw at a ny time.
An accounting method of allocating the cost of a tangible aset over its useful life.
A financial product that is dependent upon or derived from one or more underlying asset. .
An option spread position in which both the expiration dates and strike prices are different.
A person elected by shareholders to serve on the Board of Directors.
Direct Participation Program
A business venture structured to pas through income and tax losses to investors.
.The rate of interest charged by a federal reserve bank on a loan to a member bank.
Securities that are issued for less than their face value.
An account in which the customer gives the broker or someone else authorization to by and sell securities or commodities.
The situation where the rise in general level of prices slows down resulting in inflation.
A sharing arrangement in an oil/gas program, in which the general partner bears a a part of the programs cost on return for a greater percentage of the company.
The termiation of a business venture
The spreading of investment risk among different types of securities and various companies in different fields.
Diversified Investment Company
In order to advertise itself as diversified, an investment company must invest a minimum of 75% of its assets, so that no more than 5% of its assets are invested in any one issuers securities, and no more than 5% of its assets are invested in any one issuers securities, and it ows no more than 10% of the voting shares of the company.
Dividend Account (Western Account)
A form of a new issue syndicate where a member is only liable for the percentage of the issue equal to its participants.
A payment designated by the Board of Directors of a company to be distributed pro rata among the shares outstanding.
Dividend Payout Ratio
The percentage of corporations earnigns that is paid out to its shareholders,
A program in which a dividend paying company will automatically apply an investors dividend to the purchase of additional shares.
The annual percentage of return that an investor receives on either common or preferred stock.
A term issued which is quoted and traded at a dollar price rather than maturity.
The price of a bond expressed as a percentage of face value. A dollar price of 85 represents 85% of face value or $850 per $1000 face value.
Dollar Cost Averaging
A system of buying securities at regular intervals with a fixed-dollar amount. If each investment is for the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Over time, and given fluctuating prices, dollar cost averaging costs ess than the average stock price.
Do Not Reduce (DNR)
A trade type used on a buy or sell order. It tells the broker not to decrease the limit price on buy-limit and sell-stop orders on the record date of a cash dividend.
Double Barreled Bond
A municipal government obligation bond in which the cash flows are pledged by the two distinct and different entities. One entity will make interest payments, and the other, the principal payment.s
Dow Jones Industrial Average
A price weighted average of 30 significant stocks traded on the NYSE and the NASDAQ, created by Charles Dow in 1896.
A transaction on an exchange that occurs at a price below the previous transaction.
The theory states that the market is in a basic upward trend if if one of these averages advances above a previous important high, accompanied or followed by a similar advance in the other average. When the averages both dip below previous important lows, this is regarded as a confirmation of a downward trend.
When a company securities are listed on more than one exchange for the purpose of adding liquidity to the shares and allowing investors greater choice is where they can trade their shares.
Dual Purpose Fund
A fund created by a closed-ended investment company that offers two classes of stock. Each class offers entitlements to either income or capital appreciation.
The measure, expressed in years, of a fixed-income securities price sensitivity in interest rates.
income generated from employment: wages, salary, commissions.
Retained Earnings, the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.
Earnings Before Interest and Taxes (EBIT)
The earnings of a company prior to paying interest and taxes.
Earnings Per Share (EPS)
The amount of a corporations earnings that is available to each share of common stock. It is calculated by dividing net income, minus preferred dividends by the number of outstanding common shares.
A statement (also called a profit and loss, or income statement) that is issued by a company that is issued by a company that shows its earnings or losses over a given period.
A period during which there is an ample supply of money available for a loan purpose.
Exchange Traded Fund (ETF)
A type of investment company that represent a basket of securities and is traded on an exchange.
The first day that a buyer could purchase a security and not be entitled to receive the dividend.
The price at which the underlying security in an option contract can be bought or sold.
The day in which a contract can be voided.
A type of qualified retirement plan in which employees make pretax contributions into a employee trust.
403 (b) Plan
A tax deffered retirement plan that may only be establishes by certain non profit organizations such as churches and public schools systems.
A tax advantage retirement plan that may be established by a government or non-government employer.
501 (c) (3)
A section of the international code that provides tax exempt status to certain organizations.
A category of plans that provide tax advantages when saving and paying for higher education.
Face Amount Certificate Company
A type of investment company where an investor makes periodic payments, and at the end of the specific period, the company pays the investor the face of the security.
The value of a bond that represent that amount the issuer promise to pay.
Federal Open Market Comitee
A committee of the federal reserve Board that operates by selling/buying U.S. securities to and from member banks in the open market. The FEDS open market operations are its most effective tool of monetary control.
Federal Reserve Board
An entity responsible for momentary policy within the United States it seeks to control the supply of money and credit to control inflation and create a stable, growing economy.
1. The overnight borrowing of reserves by a bank from another bank.
2. Immediately available funds.
A person who is acting for another person and is therefor in a position of trust.
The date when the issuer of new securities files the registration statement with the SEC.
Futures contracts based on financial instruments such as the U.S Treasury Bonds, CDs and other interest-sensitive issues.
A person who helps to arrange a transaction.
A quote provided by a dealer that obligates the market maker to trade a minimum of 100 shares based on the information provided.
The date declared by the SEC, on which shares can start trading. This usually refers to the date when shares become available for sale in an IPO.
The yield of a bond, assuming that you reinvest the coupon, once you have received the payment .
The set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest rik for a given level of expected return.
Eleven Bond Index
The average yield of eleven selected general obligation municipal bonds with 20-year maturities.
The value of an asset less the value of all liabilities on that asset.
Euro Dollar Bond
A dollar-denominated bond issued outside the United States . The bonds pay principal and interest in US dollars.
A centralized location where securities or commodities transactions take place.
Equity Income Fund
A mutual fund whose main objective is income. The fund invests in the common and preferred stock of companies that pay in high dividend.
A legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction.
Fitch's Rating Service
A rating agency used by some municipal bond issuers.
An annuity contract in which the insurance company makes fixed (guaranteed) dollar payments to the annuities for the terms on the contact.
A term that refers to bonds that are traded without accrued interest.
A term used to describe a collateralize mortgage obligation tranche that is tied to some fluctuating interest-rate index.
A report that must be filed by an issuer under SEC rules when a material even occurs that could affect the price of the issuers securities.
An annual report that issuers must file with the SEC rules when a material even occurs that could affect the price of the issuers securities.
The uniform application for securities industry registration or transfer.
The uniform termination notice for securities industry registration.
The prohibited action of a client who buys securities and then sells them without buying for them.
The prohibited practice of trading in advance of a large customer order about which a trader has information.
Fully Diluted Earning Per Share
A calculation that assumes all common stock equivalents have been converted into common stock.
An arrangement between the general partner and limited partner of an oil/gas program in which the tax-deductible expenses and the general partner bears non deductible costs.
The analysis of industries and companies based on such factors as sales, assets, earnings, products or services.
Exchange Traded Contracts specifying a future data of delivery or receipt of a certain amount of a specific tangible or intangible product including wheat, soybeans, pork bellies, metals, and financial instruments. Futures are used by businesses as a hedge against unfavorable price changes and by speculators who hope to profit from such changes.
The partner in a limited partnership responsible for all management decisions of the partnership.
Obligation of the U.S. government, regardless as the highest grade securities. Also called Treasury Securities.
Gross Domestic Process
The total value of all goods and services produced within the boarders of a country.
An order placed with a municipal syndicate where the entire syndicate (group) will share in the take down.
The stock of a company with a record of a company with a record of growth in earnings at a relatively rapid rate.
A security that has a guarantee, from a source other than the issuer, as to payment of principal , interest or dividends.
Head and Shoulders
In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish to bearish trend reversal.
The use of a security (an option) to reduce the market risk of a current holding the hedging security is expected to preform well under the market.
Non-investment grade bonds. Also called Junk Bonds.
The buyer or owner of a security.
A corporation that owns the securities of another, in most cases with voting control.
The pledging of securities as collateral, for example, to secure the debt balance in a margin account.
A corporate debt issue that pays interest only when, and if , the company has income. Also called Adjustment Bonds"
A type of mutual fund whose portfolio consists of income securities such as bond and preferred stock.
A stock that usually pays a relatively high dividend.
A legal and binding agreement contract or document between two or more parties. In fiance, the word indenture appears when discussing bond agreements, certain real estate deeds and some aspects of bankruptcies.
An index is an indicator or measure of something, and in finance it typically refers to a statistical measure of change in a securities market.
type of fund with a portfolio constructed to match or track the components of a market index, such as the Standard Poor's 500 Index.
An option contract traded on an underlying index.
statistics used to measure current conditions as well as to forecast financial or economic trends.
A securities account registered in the name of one person as opposed to a joint account, which has more than one owner.
Individual Retirement Account (IRA)
An investing tool used by individuals to earn and earmark funds for retirement savings.
The persistent and appreciable rise in the general level of prices. It is normally associated with periods of expansion and rising interest rates.
Initial Public Offering
The first public issue of stock from a company that has not been publicly traded before.
The highest bid and lowest offer currently being published for a specific security.
The use of inside information to make a profit or avoid a loss when buying or selling securities.
An organization that invests its own assets into pension funds, investment companies, universities, and banks.
Municipal Bonds that are covered by an insurance policy that will pay all interest and principal due should the issuer default.
The unregulated international trading of foreign currencies between banks that establishes foreign exchange rates.
Payments made by a borrower or lender for the use of its funds.
In the Money
A call option's strike price that is below the market price of the underlying asset or that the strike price of a put option is above the market price.
The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.
The use of money for the purpose of using the money to gain income etc.
A rating that indicates that a municipal or corporate bond has a relatively low risk of default.
the reinvestment of asset's received as a lump-sum distribution for a tax-differed retirement plan. If the re-investment is done within 60 days, there are no tax requirements.
Any of a company's securities or the act of distributing such securities.
The amount of common shares that a corporation has issued.
The organization issuing or proposing to issue the security.
A collowuil term for a speculative, non investment grade bond.
Long term equity anticipation securities are option contracts that are publicly traded with expiration dates longer than a year.
a selection of eligible companies and investments, determined by local state governments, for institutions such as insurance and pension plans.
Letter of Intent (LOI)
A letter of intent that outlines the terms of a deal and serves as an "agreement to agree" between two parties.
Level Debt Service
Yearly interest and principal payments that remain relatively constant for the life of the bond issuer.
a classification system that grades assets that have readily observable prices.
The acquisition of a company using borrowed funds. In many cases, the loans for an Leveraged Buyout are secured by the assets of the company being acquired.
The claims by creditors against a corporation including short term liabilities (accounts payable wages and salaries payable, dividends payable accrued taxes payable), and long term liabilities. and log term liabilities. (mortgage bonds, debentures, and bank loans.)
A situation in which an investor ca lose no more tht the amount invested.
An event that usually occurs when a company cannot pay its obligations when they come due, so the company's operations are brought to an end, and its assets are divided up among creditors and shareholders.
The degree to which an asset or security can be quickly bough or sold in the market.
The risk that an issue cannot be sold at or near its market value.
A term that signifies ownership of securities.
A corporations liabilities that are due in more than a year.
The basic money supply definition that includes currency in circulation and demand deposits.
A wider definition of money supply that includes all of M1 plus savings accounts and other time deposits.
The minimum equity required to be kept in a margin account.
1. Gross Margin
2. On Margin- the use of credit to finance securities
A demand upon a customer to deposit money or securities with a broker.
The process of reducing the price of a security.
A situation where prices are moving up or down along with high levels of trading volume.
Attempting to profit by buying some securities while at the same time selling other securities short.
The last reported price at which a stock of bond transaction took place in the secondary market.
The process of increasing the price of a security, usually when a dealer sells a security to a customer.
The purchase of a put option and the underlying stock of the same day.
The date on which a loan or bond comes due and is to be paid off.
The combining of two or more corporations into a single entity.
Minimum Maintenance Requirment
The minimum level for equity in a margin account.
The market for short term debt instruments maturing in one year or less.
A mutual fund that invests in money-market instruments
A measurement of the amount of money in the economy.
Mortgage Backed Security
A debt pool of mortgages.
The P/E ratio of a company's earnings
A bond issued by a state or a political subdivision.
A type of investment company, specifically an opened-ed management company that pools investor's money and then invests in a diversified portfolio of securities.
Net Asset Value
A value per-shares of a mutual fund or an exchange traded fund on a specific time or date.
The difference between the closing price of a security of the day's trading and the previous day's closing price.
The earnings of a corporation after deducting all costs of selling, depreciation, interest expense, and taxes.
Net Interest Cost
The average weighted coupon rate for a new municipal issue.
The total value of an entity's assets minus and liabilities.
The tax-adjusted yield on a taxable bond.
New issues include all IPO's of equity securities that are sold under a registration statement or offering circular.
Non-managed Fee Based Account
A type of brokerage account where trades are free but you pay an annual percentage.
A brokerage account where the customer's securities and assets are held under the name of the brokerage firm.
The spread, expressed in percent or basis points, that when added to the yield at one point on the Treasury curves equals the discount factor that will make a securities cash flow equal to its current market price.
Corporate or U.S. debt instruments with maturities of between two and ten years.
A secured bond indenture that allows the re-pledging of collateral for additional bonds.
The purchase or sale of an option transaction to establish or increase a position.
A measurement that shows how much of a company's revenue will eventually become profit. EBIT
A financial derivative that represents a contract sold by on party to another party. Buy (call) Sell (Put)
Out-of the- money
An option that has no intrinsic value.
The amount of common shares of a corporation that are in the hands of investors. IT is equal to the amount of issued shares less treasury stock.
The reverse of overbought. A single security or a market that is believed to have declined to an unreasonable lever.
The face value or principle value of a bond.
Pass Through Securities
Securities that pool debt obligations and pass through the principal and interest payments made by debtors to the security holders.
An annuity payout option which assures a minimum number of annuity payments to the annuitant.
The provider of inter dealer, wholesale quotes for over the-counter stocks not listed on the stock exchange..
An incremental unit measure of value
Stock- 1 point=1$
Bond- 1 point=10$ (1% of Par)
Public Offering Pirce
The price at which new issues of stock offered to the public by one underwriter.
Holding of Securities by an individual or institution that may contain bonds, preferred stock, common stocks, and other securities.
A category of income, for tax purposes. generated by investments in the securities consisting of dividends, interest, and capital gains.
The highest number of options or future contracts an investor is allowed to hold on one underlying security.
A privilege that may be extended to certain shareholders of a corporation that grants them the right to purchase additional shares of a company prior to the IPO.
Price to Earnings Ratio
The price-earnings ratio (p/e) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
The original sale of a company's securities
The face or par value of a debt instrument
The selling of stock that has appreciated in value since purchase.
A formal legal document that is required by and filed with the SEC that provides details about an investment offering for sale to the public.
A model used to estimate the levels of prepayment on a loan portfolio that will occur in set period of time.
Sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment.
An option in which the holder has the right to sell a fixed amount of the underlying security at a stated price within a specific period.
A bond that can be redeemed (sold back to the issuer) at the holders option on a specific date or dates.
A method of increasing position size by using unrealized profits from successful trades to increase margin.
Quick Asset Ratio
An indicator of a company's short term liquidity.
A market makers bid and offer price and size for a specific security.
A brisk rise following a decline in the general price level of the market or an individual security. .
An evaluation of credit risk of securities by an established rating service such as Moody's, Standard and Poors, or Finchs.
Real Estate Investment Trust (REIT)
A publicly traded security representing holding in real estate investment. A REIT is not an investment company.
Realized Capital Gain (Loss)
The taxable profit or loss resulting from the profit or loss resulting from the purchase and sale of securities.
A phase of the business cycle characterized by reduced business activity, reduced corporate and personal borrowing, and rising unemployment.
The date on which you must be registered as a shareholder to receive the dividend.
The return of an investor's principal in a fixed income security.
The risk that an investor in bond will not receive the calculated yield to maturity.
A negotiated transaction in which a securities dealer sells a security with the agreement to repurchase them after a short period at a predetermined price.
A broker-dealer publication evaluating the investment merits of a specific security or industry sector.
The upper boundary of an established trading range where selling pressure tends to cause the price of a stock to decline.
The net profits that a corporation does not pay out in dividends. "Earned Surplus"
A stock split in which the number of outstanding shares is reduced and the stock price is increased "Stock Pitch"
The potential for loss on an investment due to many factors including inflation, interest rates, defuault, politics, foregin exchange.
A transaction in which the dealer matches purchases and sale orders and therefore assumes no risk in the trade.
A unit of trading or multiple therefore, generally 100 shares of stock.
The re-offering yields for each maturity of a serial bond issue
A company whose earnings and sales vary because of weather and or holidays.
existing shareholder sells a block of previously-issued stock and takes the proceeds from the sale.
Where investors buy and sell securities they already own.
A corporate bond that has specific assets pledged as collateral.
Securities Investor Protection Corporation
A membership to protect first against bankruptcy.
Any document such as a stock, bond, or notes.
A violation of the conduct rules. If a registered representative convinces a client to purchase shares of common stock or a mutual fund.
The action taken by a broker dealer when a customer fails to pay for securities by the required date,
Securities that have a preferential claim over common stock on a company's earnings in case of liquidation preferred stock bonds.
Bonds of the same issue that have different maturity dates. They mature each year for a set of number of years.
The period of time between the settlement date and the transaction date that is allotted to the parties of a transaction to satisfy the transactions obligations.
The quantity of stock shares that investors have sold short but not yet covered or closed out.
The amount of borrowed stock and individual has sold short and has not covered, as of a particular date.
The practice of selling borrowed securities i hopes that the price will decline.
The profit made on stock held less than six months. Insiders are prohibited from taking short-term swing profits on the stock of their firm.
Money regulatory set aside by a company to redeem its bonds, debentures or preferred stock.
The number or shares for which a quote is valid. For example, if a stock is quoted at 49 to 50, 5 by 7, the size of the bid is 500 shares and the size of the offer is 700 shares.
The employment of funds by a speculator, whose primary concern is for a high return on investment.
The ability of an underwriter of a new issue to at in the secondary market to maintain the price of a security at the highest bid point.
A prolonged period of time in which the economy has a high rate of inflation at the same time a high rate of unemployment.
A summary of the contents of and activity in a clients account that is sent to the customer periodically.
The situation where an order is placed, but not executed, because of a previously sent order involving the same price.
Stock Holders Equity
The total equity ownership of a corporation by its stockholders. It consists of preferred stock, common stock, retained earnings, and capital surplus.
A stop order that become a limit order after the specific stop price has been reached or passed.
An order to buy or sell that becomes a market order when the stock sells at or through a specific order.
The ability of a DMM to guarantee a specific price for a custom order
An option position in which the investor purchases or sells a call option and a put option on the same underlying stock. The expiration month and exercise price of each cotract must be the same.
Straight Life Annuity
The payout option that will guarantee an annuity payment for the remained of an individual life.
A method of calculating depreciation or amortization that results in a uniform expense spread evenly over the life of an asset.
The placing of a claim below other interests.
An investment that meets a clients investment objectives and financial situation.
The theory that reduced taxation and government reduced regulation will stimulate investments and spur economic growth.
The lower bound of an established trading range where buying pressure tends to bid up the price of the stock.
The act of selling securities owned and almost simultaneously purchasing different securities. A swap is often done to establish losses for tax purposes. (tax swap)
A group of investment banks that together underwrite and distribute a new issue of securities or a large block of an outstanding issues.
The discount from the public offering price that a member will receive when buying bonds from a syndicate.
A legal method of minimizing or decreasing an investors taxable income.
The study of price movements, volume, and trends and patters to assess the possible effect on future market direction.
An options trading strategy with which a trader makes a simultaneously purchase and sale of two options with different strike prices.
The number of shares traded in a security in a security or an entire market during a given period.
A certificate giving the holder the right to purchase securities at a stipulate price within a specific time limit.
"Dividend Account" the share of liquidity is dividend among the underwriters by the size of their allotment of the investment vehicle.
When Issued (WI)
The shortened form of when, as, and if issued indicating a conditional transaction in the security authorized for issuance but not yet actually issued.
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Unit 4 Investing
OTHER SETS BY THIS CREATOR
Series 7: Industry Rules
Series 7: Regulations & Acts
Series 7 Chp. 14: Economics
Series 7 Chp. 13: Corporate & Market Analysis
THIS SET IS OFTEN IN FOLDERS WITH...
Securities Training Corporation