Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
166 Cards in this Set
- Front
- Back
|
Safekeeping
|
An arrangement where a broker-dealer takes custody of client assets to protect them from theft or other possible problems.
|
|
|
Sales Charge
|
The amount of the purchase price of mutual fund shares that the underwriter will receive and will therefore not be invested in shares.
|
|
|
Sales Proceeds
|
The amount received upon the disposition of an asset. When calculating the tax implications of an asset sale, the sales proceeds are compared to the investor's cost basis to determine the taxable amount
|
|
|
Same Side of the Market
|
A term relating to an option investor's expectations for the underlying security, ie, bullish or bearish. Long calls and short puts are bullish. Short calls and long puts our bearish. See also: position limit
|
|
|
Savings Bonds
|
Non-negotiable bonds backed by the full faith and credit of the US government that are issued in denominations ranging from $50 to $10,000. See also: series EE
|
|
|
Scale
|
The reoffering yields for each maturity of a serial bond issue.
|
|
|
Seasonal Stock
|
A company whose earnings and sales vary because of the weather, holidays, etc., eg, a toy manufacturer with heavy sales at the holidays.
|
|
|
Shareholder Distribution
|
The sale by a shareholder of a block of stock some time after it has been sold by the issuing company. Usually the block is a large one, such as might be involved in the settlement of an estate. The security may be listed or unlisted. Also known as a secondary offering.
|
|
|
Secondary Market
|
The trading in existing or outstanding securities (vs new issues). Secondary market transactions take place on exchanges or over-the-counter.
|
|
|
Section 8 Program
|
A limited partnership designed to take advantage of tax benefits in providing government assisted housing.
|
|
|
Section 529 Plan
|
A state-sponsored college savings vehicle.
|
|
|
Secured Bond
|
A corporate bond that has specific assets pledged as collateral (vs debenture). See also: open-end indenture closed-end indenture.
|
|
|
Securities Act of 1933
|
The federal law that covers new issues of securities. It provides for full disclosure of pertinent information relating to the new issue and also contains antifraud provisions.
|
|
|
Securities and Exchange Commission (SEC)
|
The Commission, established by Congress to help protect investors, that in administers the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities Act Amendments of 1975, the Trust Indenture Act, the Investment Company Act, the Investment Advisors Act, and the Public Utility Holdings Company Act.
|
|
|
Securities Exchange Act of 1934
|
The federal law that regulates broker-dealers and secondary market securities transactions.
|
|
|
Securities Investor Protection Corporation (SIPC)
|
A non-profit membership corporation created by an act of Congress to protect clients of brokerage firms that are forced into bankruptcy. Membership is composed of all brokers and dealers registered under the Securities Exchange Act of 1934, all members of national securities exchanges, and most members. SIPC provides customers of these firms protection of up to $500,000 of cash and securities, of which no more than $250,000 may be in cash.
|
|
|
Security
|
Any document such as stocks, bonds, or notes. A fixed insurance or endowment policy, credit union shares, or fixed annuities are not considered securities.
|
|
|
Segregation
|
The requirement to hold securities separate from one another, as when customer securities are held separately from firm securities.
|
|
|
Self-Regulatory Organization (SRO)
|
Organizations and associations, such as exchanges, FINRA, and MSRB, that set industry rules.
|
|
|
Seller's Option
|
A special transaction that gives the seller the right to deliver the stock or bond at any time within a specified period
|
|
|
Selling Away
|
The failure to provide a member firm with written notice of involvement in a private securities transaction by a person associated with the member. See also: private securities transaction.
|
|
|
Selling Dividends
|
A violation of the conduct rules. If a registered representative convinces a client to purchase shares of common stock or a mutual fund because of an impending dividend, the representative can be cited for this action. Since both common stocks and mutual fund market prices are adjusted downward in the amount of the dividend, there is no monetary benefit to acquiring securities in order to receive a dividend.
|
|
|
Selling Group
|
A group of securities firms, acting as agents and receiving a concession, that help to distribute a new issue. Not members of the syndicate.
|
|
|
Sell out
|
The action taken by a broker-dealer when a customer fails to pay for securities by the required date, or when a margin maintenance call is not met.
|
|
|
Senior Securities
|
Securities that have a preferential claim over common stock on a company's earnings and in the case of liquidation. Generally, preferred stock and bonds are considered senior securities
|
|
|
SEP: Simplified Employee Pension
|
A type of pension plan that combines a corporate pension plan and an IRA. Under a SEP, the employer makes a contribution to the employee's IRA.
|
|
|
Separate Account
|
An investment pool funded by contributions to variable contracts, including variable annuities and variable life insurance. These assets are kept separate from the insurance company's general account.
|
|
|
Serial Bonds
|
Bonds of the same issue that have different maturity dates. They mature each year for a set number of years.
|
|
|
Series EE Bonds
|
A type of debt issue that is backed by the full faith and credit of the United States government. They are 30-year investments that are issued at a discount and mature at face value. These bonds are noncallable, non-transferable, and must be fully registered. The appreciation of the bond is considered interest income that is subject to federal tax, but exempt from state and local taxes. This income can be reported annually as it accrues or can be deferred until the bond is cashed in or reaches final maturity.
|
|
|
Sharing Arrangement
|
The details of how costs will be borne and revenues split among the partners in a limited partnership.
|
|
|
Shelf Registration
|
A type of new issue registration that allows the issuer some flexibility as to the timing of the issue (up to three years from filing).
|
|
|
Short Interest
|
The total number of shares of a particular stock that has been sold short and remains uncovered (not purchased). Followers of the short interest theory believe an increase in short interest is a bullish signal since the short sellers will eventually need to purchase stock to cover their shorts. This cushion of potential buyers will tend to support a declining market or accelerate a rising market.
|
|
|
Short Position
|
The amount of borrowed stock in individual has sold short and has not covered, as of a particular date.
|
|
|
Short Sale
|
The practice of selling borrowed securities in hopes that the price will decline.
|
|
|
Short-Swing Profit
|
The profit made on stock held less than 6 months. Insiders are prohibited from taking short-swing profits on the stock of their firm.
|
|
|
Simultaneous Transaction
|
A transaction in which the dealer matches purchase and sale orders and therefore assumes no risk in the trades.
|
|
|
Sinking Fund
|
Money regularly set aside by a company to redeem its bonds, debentures, or preferred stock from time to time as specified in the indenture or charter. Relative to a municipality, money is set aside to provide for retirement of a term issue at or before maturity.
|
|
|
Size
|
The number of shares for which a quote is valid. For example, if a stock is quoted at 49 to 50, 5 by 7, the signs of the bid is 500 shares and the size of the offer is 700 shares.
|
|
|
Skip Day
|
Settlement for US government bond trades that occurs two business days after the trade date (vs Regular Way of T+1).
|
|
|
Small Business Administration (SBA)
|
A federal agency that provides loans to small business investment companies (SBICs) that supply venture capital and financing to small businesses. Debentures sold by SBICs are fully guaranteed by the SBA.
|
|
|
Special Assessment Bond
|
A bond secured by a compulsory levy on benefitted property.
|
|
|
Specialist
|
A member, but not an employee of the New York Stock Exchange who has two primary functions. First, to maintain an orderly market, insofar as reasonably practicable, in the stocks in which that person is registered as a DMM. Second, the DMM acts as a broker's broker and maintains an order book of stop and limit orders. DMMs are also allowed to trade for their own account. See also: designated market maker
|
|
|
Specialized Fund
|
A type of mutual fund whose portfolio consists of stocks in a specific industry or geographical area.
|
|
|
Special Memorandum Account (SMA)
|
A line of credit established when a margin account has excess equity (above SRB initial requirement). SMA may be withdrawn by the client or used to purchase additional securities.
|
|
|
Special Tax Bond
|
A municipal revenue bond that is secured by a pledge of a specific, special tax. It is not a general obligation since it is limited to a specific tax source.
|
|
|
Speculation
|
The employment of funds by a speculator, whose primary concern is for a high return on investment. Safety of principal is a secondary factor.
|
|
|
Speculator
|
A person who is willing to assume a relatively large risk in the hope of earning a return.
|
|
|
Sponsor
|
(1) Limited Partnership: the general partner that organizes and sells the partnership.
(2) mutual fund: the underwriter of the fund. |
|
|
Spot Price
|
The current exchange rate of foreign currencies set in the unregulated interbank market.
|
|
|
Spread
|
(1) the difference between the bid and offer price of a security.
(2) the difference between the public offering price of a new issue in the proceeds received by the issuer; the underwriting spread. (3) the purchase and sale of puts or calls on the same underlying security with different expirations and/or strike prices. |
|
|
Stabilization
|
The ability of an underwriter of a new security to act on the secondary market to maintain the price of the security at the highest independent bid price.
|
|
|
Stagflation
|
A prolonged period of time in which the economy has a high rate of inflation at the same time as a high rate of unemployment.
|
|
|
Standard & Poor's (S&P)
|
A company that publishes a variety of resource materials relating to securities, including a rating service for both municipal and corporate securities.
|
|
|
Standard & Poor's 500 Index (S&P 500)
|
A composite index consisting of 500 stocks further divided into four other indices: S&P Industrial (400 stocks), S&P Transportation (20 stocks), S&P Utilities (40 stocks), and S&P Financial (40 stocks).
|
|
|
Standby Underwriting
|
An arrangement in which a securities firm is used to underwrite any unsubscribed shares of a rights offering. See also: right.
|
|
|
Statement
|
A summary of the contents of an activity in a client's account that is sent to the customer periodically.
|
|
|
Statutory Disqualification
|
An automatic disqualification of a person seeking to be associated with a securities firm. A person will have a statutory disqualification if expelled from membership in a self-regulatory organization or from association with a member. Only the SEC has the authority to reinstate a person having a statutory disqualification.
|
|
|
Statutory Voting
|
A method of voting for members of the Board of Directors of a corporation. Under this method, a shareholder receives one vote for each share and may cast those votes for each of the directorships. For example, an individual owning 100 shares of stock of a corporation that is selecting six directors would cast no more than 100 votes for each of six candidates this method tends to favor the larger stockholder (vs Cumulative Voting).
|
|
|
Step-Down Certificate of Deposit
|
A long term CD that offers investors an interest rate that is initially higher than the current market rates; subsequent interest rates paid to investors will be lower and may be adjusted more than once.
|
|
|
Step-Up Certificate of Deposit
|
A long-term CD that offers investors an interest rate that is initially lower than current market rates; subsequent interest rates paid to investors will be higher and maybe adjusted more than once.
|
|
|
Stock Ahead
|
The situation wherein an investor who has entered an order to buy or sell a stock at a certain price will see transactions at that price reported on the Tape while her own order has not been executed. The reason is that other buy and sell orders at the same price came into the specialist ahead of her and had priority.
|
|
|
Stock Dividend
|
A dividend paid in securities rather than cash. The dividend may be additional shares of the issuing company, or in shares of another company (usually a subsidiary) held by the company.
|
|
|
Stockholder
|
The owner of common or preferred stock.
|
|
|
Stockholder of Record
|
A stockholder whose name is registered on the books of the issuing corporation.
|
|
|
Stockholders' Equity
|
The total equity ownership of a corporation by its stockholders. It consists of preferred stock, common stock, retained earnings, and capital surplus. Also called: Net Worth
|
|
|
Stock Split
|
The division of the outstanding shares of a corporation into a larger number of shares. A 3-for-1 split by a company with 1 million shares outstanding results in 3 million shares outstanding, but proportionate equity in the company would remain the same. Ordinarily, splits must be voted by directors and approved by shareholders.
|
|
|
Stock Symbols
|
A unique identification symbol of up to five letters to facilitate trading and reporting.
|
|
|
Stop Order
|
(1) an order to buy or sell that becomes a market order when the stock sells at or through a specified price.
(2) a notice sent by the SEC that prevents an offering of a new issue. |
|
|
Stopping Stock
|
The ability of a DMM to guarantee a specified price for a customer order.
|
|
|
Straddle
|
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 contract must be the same.
|
|
|
Straight Life Annuity
|
The payout option that will guarantee an annuity payment for the remainder of an individual's life. This option typically provides the largest monthly payment. See also: payment option; period certain
|
|
|
Straight-Line
|
A method of calculating depreciation or amortization that results in a uniform expense spread evenly over the life of the asset. See also: depreciation; amortization
|
|
|
Street Name
|
Securities held in the name of a broker-dealer instead of the customer's name. This occurs when the securities have been bought on margin or when the customer (the beneficial owner) wishes the security to be held by the broker-dealer (the nominal owner).
|
|
|
STRIP
|
A US Treasury-sanctioned brokerage house practice of separating a bond (which is held in trust) into its face value and coupons, that are then sold separately as zero-coupon bonds.
|
|
|
Student Loan Marketing Association (SLMA)
|
An agency that provides a secondary market for insured student loans made under the Guaranteed Student Loan Program. This private, for profit corporation is also known as Sallie Mae.
|
|
|
Subject Quote
|
A nominal quote. See also: quote.
|
|
|
Subordinate
|
The placing of a claim below other interests.
(1) subordinated debenture: an unsecured bond that has a junior claim to all of their general creditors. (2) subordinated working interest. See also: reversionary working interest |
|
|
Subscription
|
The purchase of stock under the terms of a right or warrant, at the subscription price.
|
|
|
Subscription Agreement
|
The application submitted by an investor wishing to join a limited partnership. All prospective investors must be approved by the general partner prior to admission as a partner.
|
|
|
Suitability
|
An investment that meets a client's investment objectives and financial situation.
|
|
|
Supply-Side Economics
|
The theory that reduced taxation and government regulations will stimulate investment and spur economic growth.
|
|
|
Support
|
The lower bound of an established trading range where buying pressure tends to bid up the price of the stock (vs Resistance). See also: oversold
|
|
|
Suspicious Activity Report (SAR)
|
A report that must be filed whenever a firm suspects that transactions of $5000 or more may be related to illegal activities.
|
|
|
Swapping
|
The act of selling securities owned in almost simultaneously purchasing different securities. A swap is often done to establish losses for tax purposes (tax swap). Relative to bonds, a swap may be done to increase income, altar maturity, and/or upgrade quality.
|
|
|
Switching
|
The act of moving money from one mutual fund to another either within the same family of funds or between totally unrelated funds.
|
|
|
Syndicate
|
A group of investment banks that together underwrite and distribute a new issue of securities or a large block of an outstanding issue.
|
|
|
Syndicate Letter
|
An invitation to participate in an underwriting syndicate that details the rules of the syndicate.
|
|
|
12b-1 Fee
|
A fee charged against a mutual fund's average net assets and used to pay for promotional expenses.
|
|
|
Takedown
|
The discount from the public offering price that a member will receive when buying bonds from the syndicate. Also called total takedown, it is comprised of Additional Takedown plus Consessions.
|
|
|
Targeted Amortization Class (TAC)
|
A type of CMO tranche that provides protection from refinancing risk through the use of support tranches. These support tranches absorb prepayment in excess of a targeted amount up to a point where the TAC may experience a shorter maturity schedule.
|
|
|
Taxable Equivalent Yield
|
An adjustment made to a tax-free yield for comparison to taxable yields.
|
|
|
Tax Anticipation Note (TAN)
|
A short-term municipal security used by a municipality to help its cash flow. It has a maximum maturity of one year and repayment based on specific future tax collections of the municipality.
|
|
|
Tax Credit
|
A direct dollar-for-dollar offset of tax liability (vs a deduction that offsets taxable income). See also: deduction
|
|
|
Tax-Exempt Commercial Paper
|
A short-term note of a tax-exempt issuer.
|
|
|
Tax Preference Item
|
An item that is typically deductible for federal income tax purposes, but nonetheless is included in the calculation of the alternative minimum tax. See also: alternative minimum tax.
|
|
|
Tax Shelter
|
A medium or process intended to reduce or eliminate the tax burden of an individual. Tax shelters range from municipal securities to sophisticated DPPs in real estate, cattle raising, equipment leasing, oil drilling, research and development activities, and motion picture production.
|
|
|
Technical Analysis
|
The study of price movements, volume, and trends and patterns to assess the possible effect on future market direction.
|
|
|
Telephone Consumer Protection Act of 1991
|
A federal law that places restrictions on telephone solicitation.
|
|
|
Tender
|
(1) the act of surrendering securities in response to an offer to buy them at a set price as in a sinking fund to call or tender offer. See also: tender offer.
(2) the process of submitting a bid to buy a security, as in a US Treasury bill auction. |
|
|
Tender Offer
|
A public offer to buy shares from existing stockholders of one public corporation by another company or other organization under specified the terms good for a certain period.
|
|
|
Term Bond
|
Bonds of a new municipal issue where the entire issue has one maturity date.
|
|
|
Third Market
|
The trading of stock exchange listed securities in the over-the-counter market.
|
|
|
Ticker
|
The system that prints or displays last sale prices and the volume of securities transactions on exchanges on a moving tape. Also known as the Tape.
|
|
|
Tight Money
|
A period during which there is little money available for loans.
|
|
|
Time Deposit
|
An arrangement where the depositor has agreed to leave money in an account for a given period (vs Demand Deposit).
|
|
|
Time Value
|
The amount of an option premium that exceeds the intrinsic value of an option contract.
|
|
|
Tip
|
Supposedly inside information on corporate affairs that might provide a trading advantage.
|
|
|
Tombstone Ad
|
An advertisement of a new issue of securities. It is placed by the underwriters and gets its name from the fact that it is bordered in black.
|
|
|
Trade Date
|
The day on which a transaction is executed.
|
|
|
Trade Reporting and Compliance Engine (TRACE)
|
Used to report corporate bond transactions in the over-the-counter market to FINRA and disseminates bond transaction information to the public.
|
|
|
Trade Reporting and Comparison Service (TRACS)
|
TRACS is a trade reporting service operated by FINRA for the reporting of transactions in ADF eligible securities by ADF participants.
|
|
|
Trade Reporting Facility
|
Nasdaq's service that receives trade reports from market makers in Nasdaq Global Market securities, NASDAQ Capital Markets securities, CQS issues, OTC equity securities, and Nasdaq listed convertible bonds within 90 seconds (during applicable hours). Formerly known as the Automated Confirmation Transaction Service or ACT.
|
|
|
Trader
|
An individual who buys and sells for her own account for short-term profit. Also, an employee of a broker-dealer or financial institution who specializes in handling purchases and sales of securities for the firm and/or its clients.
|
|
|
Trading Authorization
|
Written permission, signed by account owners naming a third party to transact business on their behalf. Also called Power of Attorney.
|
|
|
Trading Post
|
The physical location on the floor of the New York Stock Exchange at which various stocks are bought and sold.
|
|
|
Tranche
|
The different classes into which Collateralized Mortgage Obligations (CMOs) are split.
|
|
|
Transfer
|
(1) the delivery of a stock certificate from the seller's broker to the buyer's broker and legal change of ownership.
(2) the process of recording the change of ownership on the books of the corporation by the transfer agent. When the purchasers name is recorded, dividends, notices of meetings, proxies, financial reports and all pertinent literature sent by the issuer to its securities holders are mailed directly to the new owner. |
|
|
Transfer Agent
|
An entity that, on behalf of an issuer, keeps a record of the name of the registered owner, their addresses, the number of shares owned, and sees that certificates presented to the agent's office for transfer are properly canceled and new certificates issued in the name of the new owner.
|
|
|
Treasury Bills (T-Bills)
|
Short-term obligations of the US government. They have 4-week, 13-week, 26-week, and 52-week maturities. They are purchased at a discount and mature at face value. The difference between the purchase price and maturity value (the amount of the discount) is considered interest.
|
|
|
Treasury Bonds
|
US government obligations with original maturities of more than 10 years. They are issued in $1000 denominations and pay interest semi-annually.
|
|
|
Treasury Notes
|
US government obligations with original maturities of more than one year up to 10 years. They are issued in $1000 denominations and pay interest semi-annually.
|
|
|
Treasury Stock
|
Stock issued by a company but later reacquired. Treasury stock receives no dividends and does not carry voting rights while held by the company.
|
|
|
Triple Net Lease
|
A lease arrangement in which the lessee will pay rent to the lessor, plus taxes, insurance, and maintenance on the property.
|
|
|
Triple-Tax Exempt
|
Municipal bonds on which the bondholder pays no federal, state, or local taxes on the interest. In general, bonds issued by possessions and territories of the US (eg Puerto Rico) are triple tax exempt.
|
|
|
True Interest Cost (TIC)
|
A calculation used when bidding on a new municipal issue, that takes into account the time value of money. It is also known as the Canadian Method. See also: net interest cost
|
|
|
Trust
|
A fiduciary relationship in which a person (the trustee) holds title to the property for the benefit of another party or parties.
|
|
|
Trust Indenture Act of 1939
|
A federal law that regulates bond offerings by requiring a corporation to appoint a trustee to act for the benefit of the bondholders.
|
|
|
Twenty Bond Index (TBI)
|
The average yield to maturity (on a particular day) on twenty selected general obligation bonds with 20-year maturities.
|
|
|
Type of Option
|
A call or put.
|
|
|
Uncovered
|
A short option position in which the investor does not currently have another investment position that will meet the obligation of the option contract (vs Covered). Also known as Naked.
|
|
|
Underwriting
|
The process of selling a new issue.
|
|
|
Underwriting Spread
|
The difference between the public offering price of a new issue and the proceeds received by the issuer.
|
|
|
Undisclosed Account
|
The situation where a broker-dealer receives an order for the purchase of a new issue through a third party. The broker dealer must receive assurances from the third party that the end purchaser is not a restricted party.
|
|
|
Undivided Account
|
A form of a new issue syndicate where a member will be liable for a percentage of the issue and any unsold balance equal to its participation regardless of the amount the member has sold. Also known as an Eastern account.
|
|
|
Unfunded Pension Liabilities
|
Monies owed by an employer to a retirement fund.
|
|
|
Uniform Gifts to Minors Act (UGMA)
|
The act that established rules governing the purchase of securities for a minor. A gift to a minor is irrevocable and securities must be registered in the name of an adult as custodian for the minor. See also: Uniform Transfers to Minors Act
|
|
|
Uniform Practice Code
|
The rules established by an exchange or securities association that establish proper methods and procedures for transactions between members.
|
|
|
Uniform Transfer to Minors Act (UTMA)
|
Legislation that allows for postponement of transfer of assets to the former minor's control beyond the age of majority.
|
|
|
Unit Investment Trust
|
A type of investment company in which a portfolio is purchased and held with little or no change to the investments. Commonly used with municipal bond investments.
|
|
|
Unlisted Stock
|
A security not listed on a registered Stock Exchange. See also: over the counter.
|
|
|
Uptick
|
A term used to designate a transaction made at a price higher than the preceding transaction. Also called a plus tick. A zero-tick is a term used for a transaction at the same price as the preceding trade but higher than the preceding different price. Conversely, a downtick, or minus tick, is a term used to do designate a transaction made at a price lower than the preceding trade.
|
|
|
Variable Annuity
|
A contract issued by an insurance company where the annuity payments are invested in a separate account that varies according to the performance of the securities in the account.
|
|
|
Variable Rate Demand Obligation
|
A municipal security that will adjust its interest rate at specific short-term intervals and will allow the owner to sell or put the security back to the issuer on the date the rate is reset.
|
|
|
Vesting
|
The process by which an employee becomes entitled to benefits in a retirement plan.
|
|
|
Veterans Administration (VA) Mortgage
|
A mortgage granted to a veteran of the US Armed Forces that is guaranteed by the VA.
|
|
|
Visible Supply
|
The total par value of all the competitive and negotiated municipal issues scheduled to come to market during the upcoming 30 days, and published each day in the Bond Buyer.
|
|
|
Volatility
|
Price fluctuation.
|
|
|
Volume
|
The number of shares traded in a security or an entire market during a given period.
|
|
|
Voting Right
|
The common stockholders' right to vote their stock in the affairs of their company. Preferred stock usually has the right to vote when preferred dividends are in default for a specified period. The right to vote may be delegated by the stockholder to another person. See also: statutory voting; cumulative voting; proxy.
|
|
|
Warrant
|
A certificate giving the holder the right to purchase securities at a stipulated price within a specified time limit. Warrants are typically offered in a unit along with other securities as an inducement to buy. Warrants are long-term and maybe perpetual.
|
|
|
Wash Sale
|
A sale of securities at a loss with the subsequent disallowance of the loss by the IRS. If an individual sells a security at a loss and, within 30 days, repurchases substantially the same security, the IRS will consider it a wash sale and will disallowed the loss.
|
|
|
When Issued (WI)
|
The shortened form of when, as, and if issued indicating a conditional transaction in a security authorized for issuance but not as yet actually issued.
|
|
|
Wildcatting
|
Drilling for oil or gas in an unproven area (vs Development Program). Also called Exploratory program.
|
|
|
Withholding
|
The process of detecting taxes from wages or distributions. The IRS requires financial institutions to use backup withholding for certain retirement plan withdrawals.
|
|
|
Working Capital
|
A financial calculation equal to a corporation's current assets less it's current liabilities.
|
|
|
Working Control
|
Theoretically, ownership of 51 percent or more of a company's voting stock. In practice, effective control sometimes can be exerted through ownership, individually or by a group acting in concert, of less than 50.
|
|
|
Working Interest
|
Direct participation with unlimited liability in a drilling program (vs limited liability in a limited partnership).
|
|
|
Workout
|
A nominal or subject quote. See also: quote.
|
|
|
Writer
|
The seller of an option contract.
|
|
|
Yankee Bond
|
A foreign issuer's dollar-denominated bond that is registered with the SEC and traded in the US markets.
|
|
|
Yield
|
The annual dividends or interest income paid by a security expressed as a percentage of the current price.
|
|
|
Yield-Based Options
|
Option contracts that trade on the underlying yield of certain Treasury securities.
|
|
|
Yield To Call (YTC)
|
The rate of return an investor earns from a bond assuming the bond is redeemed (called) at the first call date.
|
|
|
Yield To Maturity
|
The rate of return an investor earns assuming a bond is held to maturity.
|
|
|
Zero-Coupon Bonds
|
A bond sold at a substantial discount that does not pay periodic interest. See: Original Issue Discount (OID)
|
|
|
Z-Tranche
|
A type CMO tranche that has the longest average life of any tranche.
|
