Alphabetical - S
| SAEF | Stock Exchange Automated Execution Facility |
| Sale By Tender | ?? |
| Samurai Bonds | A yen bond issued in Japan by non residents |
| Savings Ratio | The proportion of income which is saved |
| Scalper | A trader who holds positions for a very short period of time. |
| Scenario Analysis | An analysis of the effects of possible alternative future movements in market variables on the value of a portfolio. |
| Scholes-Merton | The Nobel prize winning revision of the Black-Scholes option pricing model. |
| Scrip Issue | same as bonus issue |
| SEAQ | Stock Exchange Automated Quotation System for International Securities |
| SEATS | ?? |
| Secondary Markets | The buying and selling of a security after its primary issue |
| Secured Bond | ?? |
| Securities and Exchange Commission | US body controlling regulation of the market (Securities and Exchange Commission) |
| Securitisation | The borrowing of money through issue of securities on international markets instead of through a bank loan. Also converting an existing loan into securities, for example mortgage bonds |
| Series | All options of the same class, exercise price and expiry date |
| SETS | Stock Exchange Trading System - |
| Settlement Date | When the money for a given trade is due to be paid (and the securities handed over) |
| Settlement Day | ?? |
| Settlement Price | The average of the prices that a contract trades for immediately before the bell signalling the close of trading for that day. It is used in mark-to-market calculations. |
| Shares | Shares are shareholdings in companies with reward by way of dividends and capital gains (called equities) |
| Short | The term going short is when you intentionally sell something you don't own. |
| Short Cover | Buying a security that you were previously short |
| Short Hedge | A hedge where a short futures poisition is taken. |
| Short Position | The agreement to sell. A position involving the sale of an asset. |
| Short Rate | The interest rate applying for a very short period of time. |
| Short Selling | Selling shares that have been borrowed from another investor |
| Short Squeeze | ?? |
| Shout Option | An option where the holder has the right to lock in a minimum value for the payoff at one time during its life. |
| Sight Bill | A bill of exchange payable on acceptance |
| Sinking Fund | Payments made by the borrower on a regular basis to a special account to set aside the necessary funds for redemption of its long-term debt. |
| Soft Commodities | Sugar, coffee, cocoa etc as opposed to metals |
| Soft Currencies | ?? |
| Solvent | You are capable ot meeting your financial obligations |
| Special Purpose Vehicle | ?? |
| Specialist | An individual responsible to managing limit orders on some exchanges. |
| Split | Existing shares are reorganised "split" into more shares for example 2 shares @ 25p are exchanged for 1 share @ 50p |
| Spot | Today's rate for settlement in 2 days |
| Spot Interest Rate | see XZero-Coupon Interest Rate |
| Spot Price | The price for immediate delivery. |
| Spot Volatilities | The volatilities used to price a cap when a different volatility is used for each caplet. |
| Spread | Difference between a bid and an offer rate. More generally between one rate and another |
| Spread Trade | Treasury bond vs Corporate bond |
| Spread Transaction | A position in two or more options of the same type. |
| Stag | One who applies for a new issue in the hope of selling for a premium - no real interest in the share |
| Static Hedge | A hedge that does not have to be changed once it has been initialised |
| Step-Up Swap | A swap where the principal increases over time in a predetermined way. |
| Stochastic Variable | A variable whose future value is uncertain |
| Stock | Stock or Equity ?? |
| Stock Borrowing | When a dealer has a short position, an alternative to buying the stock is to 'borrow' it from another dealer. |
| Stock Dividend | A dividend paid in the form of additional shares. |
| Stock Index | An index monitoring the value of a portfolio of stocks. |
| Stock Index Future | Futures on a stock index. |
| Stock Index Option | An option on a stock index. |
| Stock Lending | stock borrowing |
| Stock Option | Option on a stock |
| Stock Split | The conversion of each existing share into more than one new share |
| Stocks | Fixed interest securities, for example bonds, debentures, preference shares |
| Stop-Loss Order | An order to a broker to close out a position and take the profits to date whenever a given price level is reached |
| Storage Costs | The costs of storing a commodity. |
| Straddle | A traded option strategy, simultaneous purchase/sale of both call and put options for the same share, exercise price and expiry date. A long position in a call and a put with the same strike price. |
| Strangle | A long position in a call and a put with different strike prices. |
| Strap | A long position in twp call options and one put option with the same strike price. |
| Stress Testing | Testing of the impact of extreme market moves on the value of a portfolio. |
| Strike Price | The price at which you can buy or sell the security (usually stocks). |
| Strip | A long position in one call option and two put options with the same strike price. |
| Stripped Bonds | Coupon stripping |
| Strips | Stripped government bonds in the US - Separate trading of Registered Interest and Principal Securities |
| Structured Products | ?? |
| Subordinate Debt | A bond that, in the event of liquidation, can claim only after other senior debts has been met |
| Subpoenas | A subpoena is a writ by a government agency (typically a court) that has the authority to order a person or company to testify or face punishment. |
| Superdot | Automated execution system on the New York Stock Exchange |
| Swap | An agreement to exchange cash flows in the future according to a prearranged formula. |
| Swap Rate | The fixed rate of an interest rate swap that causes the swap to have a value of zero. |
| Swaps | Exchange of debt obligations between two parties either exchange of currencies either fixed/floating or floating/fixed and sometimes both. |
| SwapsWire | Created with the intention of providing a new way to achieve confirmation of OTC interest rate swaps. |
| Swaption | An option to have a swap at a future point in time. An option to enter into an interest rate swap where a specified fixed rate is exchanges for floating. |
| SWIFT | Society for Worldwide Interbank Financial Telecommunications. Banks messaging system |
| Swing Option | Energy option in which the rate of consumption must be between a minimum and maximum level. There is usually a limit on the number of times the option holder can change the rate at which the energy is consumed. |
| Syndicate | managers, underwriters and selling agents of a bond or bank loan |
| Synthetic Bond | ?? |
| Synthetic CDO | ?? |
| Synthetic Option | An option created by trading the underlying asset. |
| Systematic Risk | Risk that cannot be diversified away. |
| SAEF Stock Exchange Automated Execution Facility |
| Sale By Tender ?? |
| Samurai Bonds A yen bond issued in Japan by non residents |
| Savings Ratio The proportion of income which is saved |
| Scalper A trader who holds positions for a very short period of time. |
| Scenario Analysis An analysis of the effects of possible alternative future movements in market variables on the value of a portfolio. |
| Scholes-Merton The Nobel prize winning revision of the Black-Scholes option pricing model. |
| Scrip Issue same as bonus issue |
| SEAQ Stock Exchange Automated Quotation System for International Securities |
| SEATS ?? |
| Secondary Markets The buying and selling of a security after its primary issue |
| Secured Bond ?? |
| Securities and Exchange Commission US body controlling regulation of the market (Securities and Exchange Commission) |
| Securitisation The borrowing of money through issue of securities on international markets instead of through a bank loan. Also converting an existing loan into securities, for example mortgage bonds |
| Series All options of the same class, exercise price and expiry date |
| SETS Stock Exchange Trading System - |
| Settlement Date When the money for a given trade is due to be paid (and the securities handed over) |
| Settlement Day ?? |
| Settlement Price The average of the prices that a contract trades for immediately before the bell signalling the close of trading for that day. It is used in mark-to-market calculations. |
| Shares Shares are shareholdings in companies with reward by way of dividends and capital gains (called equities) |
| Short The term going short is when you intentionally sell something you don't own. |
| Short Cover Buying a security that you were previously short |
| Short Hedge A hedge where a short futures poisition is taken. |
| Short Position The agreement to sell. A position involving the sale of an asset. |
| Short Rate The interest rate applying for a very short period of time. |
| Short Selling Selling shares that have been borrowed from another investor |
| Short Squeeze ?? |
| Shout Option An option where the holder has the right to lock in a minimum value for the payoff at one time during its life. |
| Sight Bill A bill of exchange payable on acceptance |
| Sinking Fund Payments made by the borrower on a regular basis to a special account to set aside the necessary funds for redemption of its long-term debt. |
| Soft Commodities Sugar, coffee, cocoa etc as opposed to metals |
| Soft Currencies ?? |
| Solvent You are capable ot meeting your financial obligations |
| Special Purpose Vehicle ?? |
| Specialist An individual responsible to managing limit orders on some exchanges. |
| Split Existing shares are reorganised "split" into more shares for example 2 shares @ 25p are exchanged for 1 share @ 50p |
| Spot Today's rate for settlement in 2 days |
| Spot Interest Rate see XZero-Coupon Interest Rate |
| Spot Price The price for immediate delivery. |
| Spot Volatilities The volatilities used to price a cap when a different volatility is used for each caplet. |
| Spread Difference between a bid and an offer rate. More generally between one rate and another |
| Spread Trade Treasury bond vs Corporate bond |
| Spread Transaction A position in two or more options of the same type. |
| Stag One who applies for a new issue in the hope of selling for a premium - no real interest in the share |
| Static Hedge A hedge that does not have to be changed once it has been initialised |
| Step-Up Swap A swap where the principal increases over time in a predetermined way. |
| Stochastic Variable A variable whose future value is uncertain |
| Stock Stock or Equity ?? |
| Stock Borrowing When a dealer has a short position, an alternative to buying the stock is to 'borrow' it from another dealer. |
| Stock Dividend A dividend paid in the form of additional shares. |
| Stock Index An index monitoring the value of a portfolio of stocks. |
| Stock Index Future Futures on a stock index. |
| Stock Index Option An option on a stock index. |
| Stock Lending stock borrowing |
| Stock Option Option on a stock |
| Stock Split The conversion of each existing share into more than one new share |
| Stocks Fixed interest securities, for example bonds, debentures, preference shares |
| Stop-Loss Order An order to a broker to close out a position and take the profits to date whenever a given price level is reached |
| Storage Costs The costs of storing a commodity. |
| Straddle A traded option strategy, simultaneous purchase/sale of both call and put options for the same share, exercise price and expiry date. A long position in a call and a put with the same strike price. |
| Strangle A long position in a call and a put with different strike prices. |
| Strap A long position in twp call options and one put option with the same strike price. |
| Stress Testing Testing of the impact of extreme market moves on the value of a portfolio. |
| Strike Price The price at which you can buy or sell the security (usually stocks). |
| Strip A long position in one call option and two put options with the same strike price. |
| Stripped Bonds Coupon stripping |
| Strips Stripped government bonds in the US - Separate trading of Registered Interest and Principal Securities |
| Structured Products ?? |
| Subordinate Debt A bond that, in the event of liquidation, can claim only after other senior debts has been met |
| Subpoenas A subpoena is a writ by a government agency (typically a court) that has the authority to order a person or company to testify or face punishment. |
| Superdot Automated execution system on the New York Stock Exchange |
| Swap An agreement to exchange cash flows in the future according to a prearranged formula. |
| Swap Rate The fixed rate of an interest rate swap that causes the swap to have a value of zero. |
| Swaps Exchange of debt obligations between two parties either exchange of currencies either fixed/floating or floating/fixed and sometimes both. |
| SwapsWire Created with the intention of providing a new way to achieve confirmation of OTC interest rate swaps. |
| Swaption An option to have a swap at a future point in time. An option to enter into an interest rate swap where a specified fixed rate is exchanges for floating. |
| SWIFT Society for Worldwide Interbank Financial Telecommunications. Banks messaging system |
| Swing Option Energy option in which the rate of consumption must be between a minimum and maximum level. There is usually a limit on the number of times the option holder can change the rate at which the energy is consumed. |
| Syndicate managers, underwriters and selling agents of a bond or bank loan |
| Synthetic Bond ?? |
| Synthetic CDO ?? |
| Synthetic Option An option created by trading the underlying asset. |
| Systematic Risk Risk that cannot be diversified away. |
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