Term
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Definition
| A term used to describe where financial securities or instruments - for example, common stocks and bonds - are traded |
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Term
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Definition
| A market in which newly issued, as opposed to previously issued, securities are traded |
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Term
| Initial Public Offering (IPO) |
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Definition
| The first time a company's stock is traded publicly |
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Term
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Definition
| A stock offering by a company that already has common stock traded in the marketplace |
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Term
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Definition
| The middleman between the firm issuing securities and the buying public. This term describes both the firms that specialize in selling securities to the public and the individuals who work for investment banking firms |
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Term
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Definition
| An investment banker who purchases and subsequently resells a new security issue. the issuing company sells its securities directly to the underwriter, who then sells the issue to the public and assumes the risk of selling the new issue at a satisfactory price |
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Definition
| An advertisement that provides a listing of the underwriting syndicate involved in the new offering in addition to basic information on the offering |
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Definition
| A legal document that describes a securities issue and is made available to potentiaal investors |
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Definition
| The markets in which previously issued securities are traded |
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Term
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Definition
| An exchange that occupies a physical location where trading occurs, such as the New York Stock Exchange |
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Term
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Definition
| A market in which transactions are conducted over the telephone or via a computer hookup rather than in an organized exchange |
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Definition
| The price at which an individual is willing to purchase a security |
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Definition
| The price at which an individual is willing to sell a security |
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Term
| American Depository Receipt (ADR) |
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Definition
| A marketable document (a receipt) that certifies a bank holds shares of a foreign firm's stock that backs the receipt. As a result the ADR trades just like a normal share of stock |
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Term
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Definition
| Excessive trading in a security account that is inappropriate for the customer and serves only to generate commissions |
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Term
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Definition
| Markets in which trading can occur at any time, with prices free to fluctuate as trading occurs |
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Term
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Definition
| An exchange member who oversees the trading in one or more stocks and is responsible for maintaining a "fair and orderly" market in those stocks by buying or selling for his or her own account |
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Term
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Definition
| A group or lot of 100 shares of common stock. Stocks are traded in round lots on the New York Stock Exchange |
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Definition
| An order involving between 1 and 99 shares of stock |
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Term
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Definition
| A trading order that expires at the end of the trading day during which it was made |
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Term
| Open or Good-Till-Cancelled (GTC) Order |
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Definition
| A trading order that remains effective until filled or cancelled |
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Term
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Definition
| An account that gives your broker the power to make trades for you |
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Term
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Definition
| An order to buy or sell a set number of securities immediately at the best price available |
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Term
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Definition
| An order that specifies a securities trade is to be made only at a certain price or better |
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Term
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Definition
| An order to sell a security if the price drops below a specified level or to buy if the price climbs above a specified level |
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Term
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Definition
| Borrowing stock from your broker and selling it with an obligation to replace the stock later |
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Term
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Definition
| The percentage that an investor must have on deposit with a broker when selling short |
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Term
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Definition
| Comprehensive financial services packages offered by a brokerage firm that can include a checking account; credit and debit cards; a money market mutual fund; loans; automatic payment of fixed payments, such as mortgages or other debt; brokerage services (buying or selling stocks or bonds); and a system for the direct payment of interest, dividends, and proceeds from security sales into the money market mutual fund |
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Term
| Full-Service Broker or Account Executive |
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Definition
| A broker who gives advice and is paid on commission, where that commission is based on the sales volume generated |
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Term
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Definition
| A "no-frills" broker who executes trades without giving any advice and thus charges much lower commission than a full-service broker |
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Term
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Definition
| Securities trading accounts in which the investors pay in full for their security purchases, with the payment due within three business days of the transaction |
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Term
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Definition
| Securities trading accounts in which the investors borrow a portion of the purchase price from their broker |
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Term
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Definition
| A maximum limit set on the percentage of the purchase price of a security that must initially be paid for by the investor, which is set by the Federal Reserve |
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Term
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Definition
| The minimum percentage margin of collateral that you must maintain |
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Term
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Definition
| A requirement that you replenish your margin account by adding cash or securities to bring it back to a minimum level |
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| Joint Tenancy with the Right of Survivorship |
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Definition
| A type of joint ownership in which the surviving owner receives full ownership of the assets in the account when the joint owner dies |
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| Tenancy-in-Common Account |
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Definition
| A type of joint ownership in which the deceased's portion of the account goes to the heirs of the deceased rather than to the surviving account holder |
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Term
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Definition
| Making trades on the Internet |
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Term
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Definition
| Individuals who trade, generally over the Internet, with a very short time horizon, generally less than one day |
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