A list of investments selected by various states in which certain institutions and fiduciaries, such as insurance companies and banks, may invest. Legal lists are often restricted to high-quality securities meeting certain specifications.
Method of achieving an increased exposure to an underlying asset through the use of financial derivative instruments. A small movement in the value of the underlying asset can cause a large difference in the value of the financial derivative instrument. Also known as gearing. See Financial Derivative Instrument
All the claims against a corporation. include accounts, wages and salaries payable; dividends declared payable; accrued taxes payable; and fixed or long-term liabilities, such as mortgage bonds, debentures and bank loans.
Limit, limited order, or limited price order
An order to buy or sell a stated amount of a security at a specified price, or at a better price, if obtainable after the order is represented in the trading crowd.
The process of converting securities or other property into cash. The dissolution of a company, with cash remaining after sale of its assets and payment of all indebtedness being distributed to the shareholders.
The ability of the market in a particular security to absorb a reasonable amount of buying or selling at reasonable price changes. is one of the most important characteristics of a good market.
The stock of a company that is traded on a securities exchange.
The portion of the offering price of shares of open-end investment companies in excess of the value of the underlying assets. Covers sales commissions and all other costs of distribution. The load is usually incurred only on purchase, there being, in most cases, no charge when the shares are sold (redeemed).
Investors are said to be locked in when they have profit on a security they own but do not sell because their profit would immediately become subject to the capital gains tax.
To take long positions or have long exposure means holding or buying an asset.
Signifies ownership of securities. "I am long 100 U.S. steel" means the speaker owns 100 shares.
LONG/SHORT EQUITY STRATEGY
Investment strategy that involves buying long equity securities that are expected to increase in value or are deemed attractive and selling short equity securities that are expected to decrease in value or are not deemed attractive.