S Flashcards
Sample
A subset drawn from a population.
Second Order Risk
Risks that are not related to the market but
to other aspects of trading, such as dealing,
implementing arbitrage structures, or
pricing illiquid or infrequently valued
securities.
Sector outperform
A typical rating category that indicates that
the expected return on a stock is greater
than that of other companies in an equity
analyst’s coverage universe. See also
Coverage universe, Equity analyst, and
Rating category
Sector perform
A typical rating category that indicates that
the expected return on a stock is about the
same as that of other companies in an
equity analyst’s coverage universe. See also Coverage universe, Equity analyst, and
Rating category
Sector rotator
An investor who follows a macroeconomic
approach to top-down investing. See also
Macroeconomic approach.
Sector underperform
A typical rating category that indicates that
the expected return on a stock is lower than
that of other companies in an equity
analyst’s coverage universe. See also
Coverage universe, Equity analyst, and
Rating category.
Secular trend
A trend that unfolds over many years or
decades, and which may be comprised of
shorter cyclical trends. See also Cyclical
trend
Security selection
The selection of securities for inclusion in a
portfolio.
Senior issuer
The term given to a company whose
securities are listed on the Toronto Stock
Exchange (TSX). See also Junior issuers
Separately Managed Account
A client management system where a new
account is opened for each new managed
account manager or product
Sharpe benchmark
A benchmark constructed by combining
a variety of style indices. It is created
statistically using multiple-regression
analysis
Sharpe ratio
The excess average return per unit of total
risk for a given time period. See also
Risk-adjusted return.
Shelf prospectus
A prospectus filed with the appropriate
regulators that allow a company to issue
debt securities up to two years after filing
for registration by simply updating the
registration information. See also
Medium-term note (MTN) program.
Short rebate
The interest earned on cash balances
credited from the opening short position
on a security
Short squeeze
Creation of additional buying demand on a
security when a short seller needs to buy
back the security to cover losses.
Simple moving average
The most popular type of moving average.
A simple moving average is determined by
summing the closing prices for a certain
number of periods and then dividing by the
number of periods. Simple moving averages
give equal weight to each period’s price. See
also Exponential moving average, Moving
average, and Weighted moving average.
Simple regression analysis
A statistical technique that determines the
linear relationship between two variables
from historical data. One variable, known
as the independent variable, is assumed to
influence the dependent variable
Single-strategy, multi-manager
hedge fund
A hedge fund that invests in several other
hedge funds that employ a similar strategy.
See also Hedge fund.
Sinking fund
An agreement in a debt security’s indenture
that the issuer will set aside a specified
amount of funds to retire some or all of the
outstanding debt security. See also
Purchase fund.
Small-cap stock
A stock with a small market capitalization.
See also Large-cap stock.
Specific risk
See Unsystematic risk.
Square One Approach
An itemized listing of all expenses expected
during retirement in line with the lifestyle
needs identified through discovery. It is the
most precise method (if future expenses can
be estimated accurately) and the most in
line with the wealth management approach.
Stable stage
See Mature stage.
Standard deviation
A statistical measure of risk that measures
the extent to which returns differ from the
average or expected level of return. The
standard deviation is equal to the square
root of the variance
