Letter S Vocabulary Flashcards
The U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry
Securities and Exchange Commission (SEC)
The market where investors buy and sell securities they already own.
Secondary Market
An investment fund that focuses on a specific industry or sector of the economy.
Sector Fund
An investment strategy involving moving investments from one industry sector to another based on cyclical trends.
Sector Rotation
A U.S. law requiring that all non-exempt securities offered to the public be registered with the SEC.
Securities Act of 1933
A U.S. law governing the secondary trading of securities and establishing the SEC.
Securities Exchange Act of 1934
A financial instrument representing ownership (stocks), a debt agreement (bonds), or rights to ownership (options).
Security
The date by which an executed security trade must be paid for and delivered.
Settlement Date
An individual or entity that owns shares in a corporation.
Shareholder
The total number of shares of a security that have been sold short but have not yet been repurchased or covered.
Short Interest
The practice of selling securities that one does not own, with the intention of repurchasing them at a lower price in the future.
Short Selling
A stock of a company with a relatively small market capitalization.
Small-Cap Stock
The act of investing in assets or financial instruments with high risk in the hope of achieving substantial returns.
Speculation
The difference between the bid and ask prices of a financial instrument.
Spread
An index comprising 500 leading U.S. publicly traded companies across various industries.
Standard & Poor’s 500 (S&P)
A measure of the dispersion or variability in a set of data or a probability distribution.
Standard Deviation
An organized marketplace where securities like stocks and bonds are bought and sold.
Stock Exchange
An action by a company to increase the number of its outstanding shares by dividing its existing shares into multiple new shares.
Stock Split
An order to buy or sell a security once it reaches a specific price.
Stop Order
An order to buy or sell a security at a specific price, but only after a given stop price has been reached.
Stop-Limit Order
An order to sell a security once it falls to a specific price, used to limit an investor’s loss.
Stop-Loss Order
A long-term investment strategy that sets target allocations for various asset classes and rebalances periodically.
Strategic Asset Allocation
Debt that ranks below other loans and securities in terms of claim to assets.
Subordinated Debt
Risk inherent to the entire market or an entire market segment, also known as “market risk.”
Systematic Risk
