An order to buy or sell that, if not executed, expires at the end of trading day on which it was entered.
DEAL RISK PREMIUM
The difference between the current market price of shares in a target company and the price offered by an acquiring company for the target companys shares to compensate for the risk that the deal may not go through. A target company is a company that is, or may become, involved in a merger or other corporate activity.
An individual or firm in the securities business who buys and sells stocks and bonds as a principal rather than as an agent. The dealer's profit or loss is the difference between the price paid and the price received for the same security. The dealer's confirmation must disclose to the customer that the principal has been acted upon. The same individual or firm may function, at different times, either as a broker or dealer.
A promissory note backed by the general credit of a company and usually not secured by a mortgage or lien on any specific property.
In a customer's margin account, that portion of the purchase price of stock, bonds or commodities that is covered by credit extended by the broker to the margin customer.
Debt Security includes a range of investments, the most common of these are bonds whereby one party (the buyer) lends money to another party (the issuer) in exchange for the right to receive an interest rate payment (coupon) and, at maturity, the principal amount or face value. Debt securities can be classified by the type of interest rate paid (fixed or floating (variable) rate) and by the type of issuer (corporate and government). Debt securities include for example bonds, debentures and capital notes.
The postponement of trading of an issue on a stock exchange beyond the normal opening of a day's trading because of market conditions that have been judged by exchange officials to warrant such a delay. Reasons for the delay might be an influx of either buy or sell orders, an imbalance of buyers and sellers, or pending corporate news that requires time for dissemination.
Natural resources, such as metals, oil, gas and timber, that conceivably can be reduced to zero over the years, present a special problem in capital management. Depletion is an accounting practice consisting of charges against earnings based upon the amount of the asset taken out of the total reserves in the period for which accounting is made. A bookkeeping entry, it does not represent any cash outlay nor are any funds earmarked for the purpose.
Depository Trust Company (DTC)
A central securities certificate depository through which members effect security deliveries between each other via computerized bookkeeping entries thereby reducing the physical movement of stock certificates.
Normally, charges against earnings to write off the cost, less salvage value, of an asset over its estimated useful life. It is a bookkeeping entry and does not represent any cash outlay nor are any funds earmarked for the purpose.
Risk of underperforming the benchmark as a result of the Sub-Fund not having direct exposure to a particular security, sector or country that increases in value
Person elected by shareholders to serve on the board of directors. The directors appoint the president, vice presidents, and all other operating officers. Directors decide, among other matters, if and when dividends shall be paid.
The amount by which a preferred stock or bond may sell below its par value. Also used as a verb to mean "takes into account" as the price of the stock has discounted the expected dividend cut.
An account in which the customer gives the broker or someone else discretion to buy and sell securities or commodities, including selection, timing, amount, and price to be paid or received.
Spreading investments among different types of securities and various companies in different fields.
Portfolio that invests in a wide variety of companies or securities.
The payment designated by the board of directors to be distributed pro rata among the shares outstanding. On preferred shares, it is generally a fixed amount. On common shares, the dividend varies with the fortunes of the company and the amount of cash on hand, and may be omitted if business is poor or the directors determine to withhold earnings to invest in plant and equipment. Sometimes a company will pay a dividend out of past earnings even if it is not currently operating at a profit.
A system of buying securities at regular intervals with a fixed dollar amount. Under this system investors buy by the dollars' worth rather than by the number of shares. If each investment is of the same number of dollars, payments buy more shares when the price is low and fewer when it rises. Thus temporary downswings in price benefit investors if they continue periodic purchases in both good and bad times, and the price at which the shares are sold is more than their average cost. does not assure a profit and does not protect against loss in declining markets. Since dollar-cost-averaging involves continuous investment in securities regardless of fluctuating price levels of such securities, investors should consider their financial ability to continue purchases through periods of low price levels.
The term domiciled refers to the country where a company is incorporated and has its registered office.
A theory of market analysis based upon the performance of the Dow Jones Industrial Average and transportation stock price averages. The theory says that the market is in a basic upward trend if one of these averages advances above a previous important high, accompanied or followed by a similar advance in the other. When both averages dip below previous important lows, this is regarded as confirmation of a downward trend. The Dow Jones is one type of market index.
(See: Up tick)
Duration represents the sensitivity of a debt security or a portfolio to changes in interest rates which is expressed in years. The higher the duration number, the greater the interest rate risk or reward for debt security prices. It is calculated by the average time in years it takes to receive payment from a debt security. See also Debt Security, Weighted Average Duration, Maturity