TOP 

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 #

S

Sales Charge - The amount added to the net asset value of a mutual fund to determine the offering price.
Sallie Mae - Nickname for the Student Loan Marketing Association and the securities it issues.
Same-Day Substitution - The buying of one security and the selling of another security, usually of equal value, on the same day.
SEC 7-Day Yield - When presented in sales literature and disclosed in a money market fund's prospectus or statement of additional information, the 7-day yield must be calculated pursuant to a formula prescribed by the SEC.
SEC 30 Day Yield - A measure that the Securities and Exchange Commission (SEC) has standardized for all mutual funds. It is the net investment income per share actually earned by a fund's investments during a one-month period. For money funds, the SEC yield is a seven-day average yield. SEC yield is expressed as an annualized percentage of a fund's maximum offering price.
Secondary Market - The market in which securities are traded after the initial (or primary) offering. Gauged by the number of issues traded. The over-the-counter market is the largest secondary market.
Secondary Offerings - When a company sells more stock to the market, after its initial public offering, to raise additional capital to finance its operations.
Sector - A group of securities that are similar with respect to industry, maturity, type, rating or coupon.
Sector Funds - Sector funds invest in the stocks of one specific sector of the economy, such as health care, chemicals, or retailing. These funds tend to be more volatile than funds holding a diversified portfolio of stocks in many industries.
Sector/Specialty Stock Funds - Funds that invest in a particular industry or area of the market, such as financial, technology or precious metal stocks.
Secured Obligation - Debt whose payment of interest and/or principal is secured by the pledge of assets or other collateral.
Securities - General name for all stocks and shares of all types. In common usage, stocks are fixed interest securities and shares are the rest, though strictly speaking, the distinction is that stocks are denominated in money terms.
Securities Act of 1933 - First law enacted by Congress to regulate the securities market; provides principally for securities registration requirements and prevention of fraudulent conduct.
Securities and Exchange Commission (SEC) - The federal agency responsible for the enforcement of laws governing the securities industry.
Securities and Futures Authority (SFA) (previously known as The Securities Association) - The self-regulating organization responsible for regulating the conduct of brokers and dealers in securities, options and futures, including most member firms of the Exchange.
Securities Exchange Act of 1934 - Law predominately governing the securities activities on the national securities exchanges.
Securities Industry Automated Corporation (SIAC) - The computer facility and trade processing company for NYSE, AMEX, NSCC, and PCC.
Securities Investor Protection Corporation (SIPC) - Non-profit organization consisting of members of the securities industry who support it on an assessment basis. If a member should fail, that member’s customers are protected up to a maximum of $500,000, including up to $100,000 in cash.
Security - Property pledged as collateral for a loan.
SEDOL - Identification numbers and codes assigned to securities for trading purposes by the London Stock Exchange. SEDOL stands for the Stock Exchange Daily Official List number.
Segregation - The isolation of securities that the firm may not use for hypothecation or loan. The securities, which must be "locked up" by the firm, represent fully paid-for securities or the portion of a margin account in excess of loanable securities.
Self-Directed IRA - Individual retirement account that is managed by an account holder who appoints a custodian to carry out instructions. This kind of IRA is subject to the same types of restrictions and limitations as a regular IRA.
Sell-Out - Occurs when a contract brokerage firm's client incurs a margin or maintenance call and does not settle the balance by settlement date. The firm then sells the securities at the best price available and the buyer is held liable for the price and costs.
Self-Regulating Organization (SRO) - An organization recognized by the SIB and responsible for monitoring the conduct of business by, and capital adequacy of, investment firms.
Selling Short - An investment strategy where the investor sells a stock they do not own with the intention of buying it back later at a lower price.
Senior loans - Loans or other debt securities that are given preference to junior securities of the borrower. In the event of bankruptcy, payments to holders of senior loan obligations are given priority over payments to shareholders of subordinated debt, as well as shareholders of preferred and common stock. Senior loans may share priority status with other senior securities of the borrower, and such status is not a guarantee that monies to which the trust is entitled will be paid.
Serial Bonds - An issue of bonds that matures over a period of years.
Serial Maturity - Type of bond maturity in which part of the issue matures at different times until the whole issue has matured.
Settled Inventory - The portion of a trader's position that the firm has paid for and maintains. This is the portion that must be financed.
Settlement - When payment is made and the securities are delivered for a securities transaction.
Settlement Date - The day when a transaction is to be completed. On this day, the buyer is to pay and the seller is to deliver. Settlement is normally 3 business days on listed equities and 1 business day on listed options.
Settlement Date Inventory - The total of all positions in a security on settlement date, including fault, transfer, fails and elsewhere.
Share - A unit of ownership in a fund or a stock.
Share Class - Provides multiple purchase options to an investor and offer different investment minimums and fees. Share Classes differ between fund families.
Shareholder - Owns shares of a mutual fund or a stock.
Shareholder Services Fee - A fee that the fund pays the fund's sponsor to provide for the sponsor's administrative services.
Share Repurchase - Program by which a corporation buys back its own shares in the open market. It is usually done when shares are undervalued. Since it reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders.
Sharpe Ratio - The portfolio's excess return (relative to the risk free rate) divided by the standard deviation of the portfolio's excess return.
Short Account - Account in which the customer has sold short securities. Before a customer may sell short, a margin account must be opened.
Short Exempt - A phrase used to describe a short sale that is exempt from the short sale rules. For example, buying a convertible preferred, submitting conversion instructions, and selling the common stock before the stock is received.
Short Position - (1) A position in a customer’s account in which the customer either owes the firm securities or has some other obligation to meet. (2) Any position on the firm’s security records having a credit balance.
Short Sale - The sale of securities that are not owned or that are not intended for delivery. The short seller "borrows" the stock to make delivery with the intent to buy it back at a later date at a lower price.
Short-Term Bond Funds - Funds that invest in bonds with average maturities of three years or less.
Short-Term Bonds - Those maturing within five years.
Short-Term Government Bond - A government bond that matures between one and five years.
SIC - Abbreviation for Standard Industrial Classification. Each four-digit code represents a unique business activity.
SIPC - Securities Investor Protection Corporation. Nonprofit organization that provides funds to broker-dealer member firms to protect client assets on deposit in the event that broker-dealer fails and is liquidated.
Signature Guarantee - Rubber stamp (or typed - not handwritten) placed next to an individual's name indicating validity of the endorsement. The grantor accepts financial liability.
Size - The number of shares available in a quote. For example, if the quote and size on a stock is 9-3/8 to 9-1/2 3x5, it means that the bid is 9-3/8, the offer is 9-1/2, 300 shares are bid, and 500 shares are offered.
Slippage - The difference between estimated transaction costs and actual transaction costs. The difference is usually composed of a price difference and commission costs.
SMA (Special Miscellaneous Account) - A memorandum account that records a customer's excess margin and buying power. Excess funds may come from several sources: sales proceeds, market value appreciation, dividends, and cash or securities put up in response to a margin call.
Small-Capitalization Equity Style - These managers (as defined by Frank Russell Universe) focus on small-capitalization stocks. Characteristics vary by manager, depending on whether they pursue an earnings growth, market-oriented or price-driven philosophy when selecting small stocks. Volatility is often above-market averages.
Small-Cap Stocks - An investment categorization based on the market capitalization of a company.
Small Company Funds - Funds that invest in companies that generally have an average of $500 million or less in market capitalization.
Soft Landing - Occurs when economic growth slows but remains fast enough to prevent a recession. At the same time, growth slows enough to prevent inflation.
Specialist - A member of certain SEC-regulated exchanges who must make a market in assigned securities. Specialists also act as two-dollar brokers in executing orders entrusted to them.
Special Meeting - Meeting of shareholders to take action on specific proposals submitted by management and the Board of Directors for consideration and approval.
Special Offer - Manager's undertaking to reduce a fund's operating expenses for a period of time.
Speculation - Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss.
Speculative Stocks - Speculative stocks lack proven records of success; their earnings are uncertain and highly unstable. They are subject to high price swings and usually pay little or no dividends. These stocks are highly risky with the prospect for higher returns.
S&P 500 - The basket of 500 widely held stocks which are thought to measure changes in stock-market conditions. The S&P 500 index is a service of Standard & Poor's corporation, a financial advisory, securities rating, and publishing firm. The index tracks industrial, transportation, financial and utility stocks.
S&P Indices - Standard & Poor's Indices are broad-based measures of changes in stock market conditions based on the performance of widely held common stocks. Standard & Poor's, a division of The McGraw-Hill Companies, Inc., provides a broad range of investment services, including stock and bond ratings, composite indices, a wide variety of investment advisory reports, and so forth.
Spin Off - Giving stock dividend in another CUSIP, usually a subsidiary.
Split Fund - A mutual fund or unit trust that contains Treasury securities and other types of investments.
Sponsor - The organizer and, generally, the initial shareholder in a fund.
Spread - The difference between the bid and offer sides of a quote.
SRO (Self-Regulating Organization) - An organization recognized by the SIB and responsible for monitoring the conduct of business by, and capital adequacy of, investment firms.
Standard Deviation - A statistical measurement of the dispersion of a fund's return over a specified time period. Most firms calculate standard deviations by comparing a fund's monthly returns to its average monthly return over a 36-month period, and then annualizes the number. Investors may examine historical standard deviation in conjunction with historical returns to decide whether a fund's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how the fund actually performed, but merely indicates the volatility of its returns over time.
Standard & Poor’s 500 Index - A broad-based measurement of changes in stock-market conditions based on the average performance of 500 widely held common stocks from 83 industrial groups. The index, which tracks industrial, transportation, financial and utility stocks, to name a few, provides a guide to the overall health of the U.S. stock market.
Statement of Additional Information - A document containing information not considered important enough to all investors to be included in a fund's prospectus. It can be obtained by a direct request to the fund company.
Statement of Cash Flows - A financial statement showing a firm's cash receipts and cash payments during a specified period.
Statement of Shareholders' Equity - A balance sheet line item referring to the mathematical calculations used to determine the Shareholders' Equity.
State-Specific Municipal Bond Funds - Will purchase municipal obligations of a specific state to provide investors monthly income that is exempt from federal, state, and any local taxes and are designed exclusively for the investor residing in the issuing state.
Stock - A security that represents ownership in a corporation and that is issued in "shares".
Stock Ahead - Refers to a limit order that has not been executed because of other orders at the same limit that were entered earlier.
Stock Dividends - A dividend paid by corporations from retained earnings in the form of stock. The corporation declares the dividend as a percentage of shares outstanding.
Stockholder’s Equity - Company’s net worth. Total liabilities are subtracted from the total assets to arrive at this figure.
Stockholder of Record - A stockholder whose name is registered on the books of the issuing corporation as owning the shares as of a particular date. Dividends and other distributions are made to stockholders of record.
Stock Power - A form that may be endorsed in lieu of endorsing the back of the stock certificate.
Stock Record - A ledger on which all security movements and positions are recorded. The record is usually in two formats: One shows movements of the security the previous day and the other shows the current security positions.
Stock Splits - The exchange of existing shares of stock for more newly issued shares from the same corporation. Since the number of shares outstanding increase, the price per share goes down. Splits do not increase or decrease the capitalization of the company, just redistributes it over more shares. The effect is the adjustment to the trading price.
Stop Limit Order - This order is similar to a stop order, but it becomes a limit order instead of a market order when the price is reached or passed. Buy stop limit orders are entered above the current market; sell stops are extended below it.
Stop Order - A memorandum order that becomes a market order when the price is reached or passed. Buy stops are entered above the current market price; sell stops are entered below it.
Street Name - A form of registration in which securities are registered in the name of a brokerage firm, bank, or depository; it is acceptable as good delivery.
Strike (Exercise) Price - The stated price per share for which the underlying asset may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract.
Subject Quote - A quote given to indicate the current market status but is not to be taken as a firm ask or bid.
Subordinated Debenture - A debenture whose claim to interest and principal of the corporation comes after those of regular debentures and other debt securities.
Subscription - An agreement of intent to buy newly issued securities.
Subscription Right - A stockholder's right to maintain his proportionate ownership in the company by being given the opportunity to buy newly issued stock before the general public.
Suitability - A determination made by a registered representative as to whether a particular security matches a customer’s objectives and financial capability. The representative must have enough information about each customer in order to make this judgment.
Supplemental Contract - A contract issued by the clearing corporation that includes the total of the regular way contract, adjustments made through advisories, and adds by seller processing.
Surety Bond - Insurance bond from a company allowing financial reimbursement in the case of a lost or stolen security. Also known as Indemnity Bond.
Surrender Charges - Fees for terminating a CD, insurance or annuity contract before it matures.
Suspended Trading - A halt in the trading of a particular security that is usually temporary. This may occur because of an imbalance of buy and sell orders or because of a significant news announcement.
Symbol - The symbol used to designate a security for trading.
Syndicate - Group of investment bankers who together underwrite and distribute a new issue of securities or a large block of an outstanding issue.