A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Secondary Market
Securities agency
Securities Company
Share
Shareholder
Short position
Short sale
SHORT-TERM FUND
Specific Risk
Speculation
Spot Exchange Rate
Spot
Spread
Standard deviation
State Bonds
Stock market index
Strips
Strong currency
Subscription Right
Support
Swap
Syndicate
Systematic Risk
Secondary Market. A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market. Also called aftermarket.
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Securities agency. A company that does business in financial markets for the account of third parties. Its principal activities consist of receiving and executing buy and sell orders for clients, managing securities portfolios for third parties and to act as a depository of securities for the account of its holders.
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Securities Company. A limited company that conducts business on financial markets for the account of third parties and its own account. Its principal activities consist of receiving and executing orders of clients, managing the security portfolios of third parties, acting as security depositories for the account of its holders, to award credits and to assure subscription to emissions of new securities.
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Share. Represents a proportional ownership in a company. Shares confer certain rights upon their holders, amongst others, the right to participate in the profits of the company, a residual part of the company in the event of liquidation or dissolution, a vote at the annual general meeting and a preferential right to the subscription of new shares issued by the company.
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Shareholder. An owner of a share or shares of a company's stock. A stockholder. An investor.
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Short position. In the case of a futures contract, the promise to sell a certain quantity of a good at a particular price in the future.
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Short sale. On the stock exchange, is the sale of an asset that is not owned but delivery is at some time in the future. The benefit of this trade is that if at the moment of delivery, the price is below the price at which the sale was executed, a profit accrues to the trader.
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SHORT-TERM FUND. A fund that invests primarily in securities with maturities of less than one year. Short-term funds include taxable money market funds and tax-exempt money market funds (also known as short-term municipal bond funds).
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Specific Risk. See non-systematic risk.
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Speculation. Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains.
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Spot Exchange Rate. An exchange rate whose transaction consists the purchase or sale of a quantity of currency at the current exchange rate, with delivery taking place in two business days.
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Spot. For immediate delivery.
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Spread. The difference between the current bid and the current ask (in over-the-counter trading) or offered (in exchange trading) of a given security; also called bid/ask spread.
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Standard deviation. A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.
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State Bonds. Medium term treasury instruments, with a nominal value of 10 000 points and with annual interest payments.
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Stock market index. An index which is designed to measure price changes of an overall market, such as the stock market or the bond market.
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Strips. Bond, usually issued by the U.S. Treasury, whose two components, interest and repayment of principal, are separated and sold individually as zero-coupon bonds. Strip is an acronym for Separate Trading of Registered Interest and Principal of Securities.
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Strong currency. That currency that maintains a certain amount of stability and generally is classified by countries with low levels of inflation.
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Subscription Right. The right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.
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Support. In technical analysis, a price level which a security has had difficulty falling below.
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Swap. An exchange of streams of payments over time according to specified terms. The most common type is an interest rate swap, in which one party agrees to pay a fixed interest rate in return for receiving an adjustable rate from another party.
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Syndicate. A group of investment banks, which jointly underwrite and distribute a new security offering. Also called underwriting group or purchase group or banking syndicate or investment banking syndicate or distributing syndicate.
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Systematic Risk. Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against systematic risk because different portions of the market tend to under perform at different times. Also called market risk.
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