Stocks Vocab. 2

Question 0

Contract note

Answer 0

This is a printed confirmation letter from any broker indicating a bargain which is carried out.

Question 1

Cash settlement

Answer 1

In the stock exchange, there are certain deals like Gilts which are rendered for cash and not for account settlement. They are settled the next day of the deal.

Question 2

Coupon

Answer 2

Refers to interest amount payable only for fixed interest stock.

Question 3

Cum dividend

Answer 3

These are shares that are sold, allowing the buyer to receive the following dividend.

Question 4

Dawn Raid

Answer 4

Refers to the buying of a huge amount of shares in the morning at the opening of stock market.

Question 5

Dealing

Answer 5

This means the purchase and sale of shares.

Question 6

Debenture

Answer 6

The stock that a company issues which are backed by assets.

Question 7

Depreciation

Answer 7

The amount of money set aside for replacement of the assets.

Question 8

Dividend

Answer 8

The part of the company’s profits which is usually distributed to company’s shareholders, normally on regular basis.

Question 9

Equities

Answer 9

These are the ordinary shares. They are different from debenture and also from loan stock.

Question 10

Ex-dividend

Answer 10

The share which is bought without any right for receiving the next dividend. This is usually retained by sellers.

Question 11

Final Dividend

Answer 11

This is the dividend which is declared according to the company’s annual results.

Question 12

Assets

Answer 12

Anything of value that you own

Question 13

Liabilities

Answer 13

Any debts or payments you owe to someone else