OF FINANCIAL TERMS AND
INTERNET LINGO (SLANG)
- AFACT: As far as I can tell.
- AFAIK: As far as I know.
- AFK: Away From Keyboard.
Depositary Receipt ADR:
A security, created by a U.S. bank, that evidences ownership to a
specified number of shares of a foreign security held in a depositary
in the issuing company's country of domicile. The certificate,
transfer, and settlement practices for ADRs are identical to those for
U.S. securities. U.S. investors often prefer ADRs to direct purchase of
foreign shares because of the ready availability of price information,
lower transaction costs, and timely dividend distribution.
- AMEX: American Stock Exchange
- AMEX Composite
Index - (XAX): The
American Stock Exchange introduced a new AMEX Composite Index with a
new ticker symbol, XAX, on January 2, 1997. The XAX is a market
capitalization-weighted, price appreciation index, and replaces the
AMEX Market Value Index (XAM) which, since its inception, has been
calculated on a "total return basis" to include the reinvestment of
dividends paid by AMEX companies. The new AMEX Composite Index is more
comparable with other major indexes, which reflect only the price
appreciation of their respective components.
Option: An option
contract that may be exercised at any time between the date of purchase
and the expiration date. Most exchange-traded options are American-
- Analyst: A person with expertise in
evaluating financial investments; he or she performs investment
research and makes recommendations to institutional and retail
investors to buy, sell, or hold; most analysts specialize in a single
industry or business sector.
- Arbitrage: Arbitrageurs make their living by
seizing on price differences for a security that is traded on a
different market or in a different form, such as an option or a futures
contract. Someone who buys, say, a soybean contract on one market and
sells a soybean contract on another exchange is practicing arbitrage by
locking in a profit.
- Ask: The price at which someone who owns
a security offers to sell it; also known as the asked price. (See also
- Asset: Any possession that has value in an
- Asset Turnover
TTM(Trailing Twelve Months): This value is calculated as the Total Revenues for the
trailing twelve months divided by the Average Total Assets. The Average
Total Assets is defined as the Total Assets for the 5 most recent
quarters divided by 5.
- Assignment: The receipt of an exercise notice by
an option writer (seller) that obligates him to sell (in the case of a
call) or purchase (in the case of a put) the underlying security at the
specified strike price. In other words: Notice to an option writer that
an option has been exercised by the option holder.
- At-The-Money: An option whose strike price is
equal/or approximately equal-to the current market price of the
underlying security. An option is at-the-money if the strike price of
the option is equal to the market price of the underlying security. For
example, if XYZ stock is trading at 55, then the XYZ 55 option is
- Average Diluted
This is the number of weighted average shares outstanding for the
- Bagger (one,
double, triple, quad or more): How many times the price of a stock has multiplied since the
- Basis Points: Refers to yield on bonds. Each
percentage point of yield in bonds equal 100 basis points. If a bond
yield changes from 7.25% to 7.39%, that's a rise of 14 basis points.
- BB: Bulletin Board.
- BBIAB: Be Back In A Bit.
- BBL: Be Back Later.
- Bear: A person who thinks a stock or
market will go lower.
- Bearish: Looking for a stock or market to go
- Bear Raid: A situation in which large traders
sell positions with the intention of driving prices down.
- Bellwether Stock: The stock of a company recognized as
a leader in its industry. For example, IBM is considered a bellwether
stock in the computer field. Often, the fortunes of an industry are
reflected in the behavior of its bellwether stocks.
- Best Ask: The price at which someone who owns
a security offers to sell it; also known as the asked price. Please
note that the New York Stock Exchange and the American Stock Exchange
do not provide Ask information on a delayed basis. (See also "Ask".)
- Best Bid: The price a prospective buyer is
prepared to pay at a particular time for trading a unit of a given
security. Please note that the New York Stock Exchange and the American
Stock Exchange do not provide Bid information on a delayed basis. (See also "Bid".)
- Beta: Beta is a measure of a company's
common stock price volatility relative to the market.
- Bid: The price a prospective buyer is
prepared to pay at a particular time for trading a unit of a given
security. (See also "Best Bid".)
- Blow-Off Top: A steep and rapid increase in price
followed by a steep and rapid drop in price. This is an indicator seen
in charts and used in technical analysis of stock price and market
- Bond: Bonds are debt and are issued for a
period of more than one year. The U.S. government, local governments,
water districts, companies and many other types of institutions sell
bonds. When an investor buys bonds, he or she is lending money. The
seller of the bond agrees to repay the principal amount of the loan at
a specified time. Interest-bearing bonds pay interest periodically.
- Book to Bill: Book to bill ratio. It reports on
the amount of product that is booked for delivery as compared with
those that companies already have billed for.
- Book Value Per
Share ($ per share):
This is defined as the Common Shareholder's Equity divided by the total
- Book Value Per
Share, MRQ(Most Recent Quarter) ($ per share): This is defined as the Common
Shareholder's Equity divided by the Shares Outstanding at the end of
the most recent fiscal quarter.
- Book Value,
MRQ(Most Recent Quarter) ($ millions): Also referred to as Common
Shareholder's Equity, this is the Total Shareholder's Equity as of the
most recent quarterly Balance Sheet minus Preferred Stock and
Redeemable Preferred Stock.
- Box: Computer.
- BRB: Be Right Back.
- Breadth: This is one of those technical terms
you might hear mentioned in a trading room. It simply demonstrates how
broadly a market is moving. When three-quarters of the stocks on the
New York Stock Exchange, for example, rise during a given day, an
observer might say the stock market had good breadth. Often, observers
will measure the number of stocks advancing against the number
declining as one way of monitoring breadth.
- Breakout: A rise in a security's price above a
resistance level (commonly its previous high price) or drop below a
level of support (commonly the former lowest price). A breakout is
taken to signify a continuing move in the same direction. Can be used
by technical analysts as a buy or sell indication.
- BTW: By the way.
- Bull: A person who thinks a stock or
markets are going higher.
- Bullish: Looking for a stock or the markets
to go higher.
- Business Summary: This field of information will give
the investor a brief description of what the company's line of business
is. It also gives information regarding the current period revenues and
earning vs. the prior periods results.
- Buyer: The purchaser of an option, either a
call option or a put option. Also, referred to as the option holder. An
option purchase may be in connection with either an opening or a
- BW: Business Wire (news service).
- Call: An Option contract that gives the
holder the right to buy the underlying security at a specified price
for a certain, fixed period of time.
- Call Option: A call option is what you buy if you
think the stock will go up. An option which gives the option buyer the
right to purchase (go "long") the underlying security at the strike
price on or before the expiration date.
- Capital Spending,
5 Year Growth Rate (%):
This is the compound annual growth rate of Capital Spending over the
last 5 years. Capital Spending is the sum of the Capital Expenditure
items found on the Statement of Cash Flows.
Option: A capped
option is an option with an established profit cap or cap price. The
cap price is equal to the option's strike price plus a cap interval for
a call option or the strike price minus a cap interval for a put
option. A capped option is automatically exercised when the underlying
security closes at or above (for a call) or at or below (for a put) the
Option's cap price.
- Cash &
represents cash and all securities that can readily be transferred into
cash as listed in the current assets section.
- Cash Flow Per
Share, ($ per share):
Cash Flow is defined as the sum of Income After Taxes minus Preferred
Dividends and General Partner Distributions plus Depreciation,
Depletion and Amortization.
- Cash Flow Per
Share, TTM(Trailing Twelve Months) ($ per share): This value is the trailing twelve
month Cash Flow divided by the trailing twelve month Average Shares
- Cash From
Financing: The sum of
all the individual financing activity cash flow line items.
- Cash From
Investing: The sum of
all the individual investing activity cash flow line items.
- Cash From
Operations: The sum
of all the individual operating activity cash flow line items.
- Cash Per Share,
Quarterly, MRQ(Most Recent Quarter) ($ per share): This is the Total Cash plus Short
Term Investments divided by the Shares Outstanding at the end of the
most recent fiscal quarter.
- CEO: Chief Executive Officer.
- CFO: Chief Financial Officer.
- Churning: Excessive trading of a clients
account in order to increase the broker's commission.
- CIO: Chief Information Officer
- Class of Options: Option contracts of the same type
(call or put) and Style (American, European or Capped) that cover the
same underlying security.
Board of Trade Clearing Corporation, whose function is to clear (match)
all purchases and sales and to assure the financial integrity of all
futures and options transactions on the Chicago Board of Trade. Once a
trade has been cleared, the Clearing Corporation becomes the buyer to
every seller and the seller to every buyer.
- Closed-end Fund: A closed-end fund sells a fixed
number of shares to investors. Those shares sell on an exchange and
vary in price, depending on demand for the fund. A fund's shares, for
example, can trade below their net asset value or above their net asset
value - depending on investors' demand for the shares. Country funds
that represent shares in a specific country or region, such as Italy or
France, are often closed-end funds.
- Closing Purchase: A purchase or sale that
liquidates-offsets-an existing position. That is, selling an option
that was previously purchased or buying back an option which was
previously sold. A transaction in which the purchaser's intention is to
reduce or eliminate a short position in a given series of options.
- Closing Sale: A transaction in which the seller's
intention is to reduce or eliminate a long position in a given series
- Combination: A position created either by
purchasing both a put and a call or by writing both a put and a call on
the same underlying security.
- Commodity: A commodity is food, a metal or
another physical substance that investors buy or sell, usually via
- Common Dividends
Per Share: This is
the Common Stock Cash Dividends Per Share for the selected time period.
- Common Shares: These are securities that represent
equity ownership in a company. Common shares let an investor vote on
such matters as the election of directors. They also give the holder a
share in a company's profits via dividend payments or the capital
appreciation of the security.
Indicator: A measure
of investors' faith in the economy and the securities market. A low or
deteriorating level of confidence is considered by many technical
analysts as a bearish sign.
- Consumer Price
Index: The CPI, as it
is called, measures the prices of consumer goods and services and is a
measure of the pace of U.S. inflation. The U.S. Department of Labor
publishes the CPI every month.
- Convergence: The movement of the price of a
future contract toward the price of the underlying cash commodity. At
the start, the contract price is higher because of the time value. But
as the contract nears expiration, the futures price and the cash price
- COO: Chief Operation Officer.
- Corner A Market: To purchase enough of the available
supply of a commodity or stock in order to manipulate its price.
- Cost Of Goods
Sold: Also called the
Cost of Revenue, this is the cost of all raw materials plus the work in
process and the cost of producing the finished goods.
- Covered Call
strategy in which one sells call options while simultaneously owning an
equivalent position in the underlying security or strategy in which one
sells put options and simultaneously is short an equivalent position in
the underlying security.
- Current Ratio
MRQ(Most Recent Quarter): This is the ratio of Total Current Assets for the most
recent quarter divided by Total Current Liabilities for the same period.
- CYA: See you later.
- Cyclical Stock: The stock of a company whose
fortunes are closely tied to the cyclical ups and downs of the economy
in general. For example, General Motors is a cyclical stock since its
business of selling autos is highly dependent on a robust economy with
its attendant high levels of employment, rising personal incomes, etc.
- Day Order: An order to buy or sell stock that
automatically expires if it can't be executed on the day it is entered.
- DCC: Start a chat or send a file.
- DD: Due Diligence.
- Debenture: The common type of bond issued by
large, well-established organizations. Holders of debentures
representing corporate indebtedness are creditors of the corporation
and entitled to payment before shareholders upon dissolution of the
- Debt to Equity
Ratio: Long-term debt
divided by shareholders' equity, showing relationship between long-term
funds provided by creditors and funds provided by shareholders; high
ratio may indicate high risk, low ratio may indicate low risk.
- Depreciation: This reflects the depreciation for
all capital goods.
Security: A financial
security whose value is determined in part from the value and
characteristics of another security, the underlying security.
- Devaluation: A lowering of a country's currency
relative to gold and/or currencies of other nations. The opposite is
- Diluted Shares: This is the number of shares of
Common stock that would be outstanding if all convertible securities,
warrents and options were converted to Common.
- Discount Rate: This is the interest rate charged by
the U.S. Federal Reserve, the nation's central bank, for loans to
member banks. The Fed, as it is called, alters rates to increase or
decrease the growth of the nation's economic output.
- Divergence: When two or more averages or indices
fail to show confirming trends.
- Dividend: Distribution of earnings to
shareholders, prorated by the class of security and paid in the form of
money, stock, scrip, or, rarely, company products or property. The
amount is decided by the Board of Directors and is usually paid
quarterly. Mutual fund dividends are paid out of income, usually on a
quarterly basis from the fund's investments.
Declared, Last Quarterly ($ per share): This is the amount of the last
quarterly dividend, if one has been declared by the company.
- Dividend Ex-date,
Last Quarterly: This
is the first date on which a person purchasing the stock is no longer
eligible to receive the last announced dividend. If a prospective
dividend payment has been announced, this may be a future date. The
format for this variable is MM/DD/YY (12/31/98).
- Dividend Rate ($
per share): This
value is the total of the expected dividend payments over the next
twelve months. It is generally the most recent cash dividend paid or
declared multiplied by the dividend payment frequency, plus any
recurring extra dividends.
- Dividend Yield
(%): This value is
the current percentage dividend yield based on the present cash
dividend rate. It is calculated as the Indicated Annual Dividend
divided by the current Price, multiplied by 100.
- Double(r): Stock thats price has doubled since
a given time.
- Dow Jones
Industrial Average - DJIA: The Dow Jones Industrial Average index - (DJIA) is a
price-weighted average of 30 actively traded blue chip stocks,
primarily industrials but including American Express Co. and American
Telephone and Telegraph Co. Prepared and published by Dow Jones &
co., it is the oldest and most widely quoted of all the market
indicators. The components, which change from time to time, represent
between 15% and 20% of the market value of NYSE stocks. The DJIA is
calculated by adding the closing prices of the component stocks and
using a divisor that is adjusted for splits and stock dividends equal
to 10% or more of the market value of an issue as well as substitutions
and mergers. The average is quoted in points, not in dollars.
- DT: Down tick in the price of a stock,
Price is falling. Our Day Trading.
- Due Diligence: Research the fundamentals of a stock.
- DYODD: Do your own due diligence.
- FAQ: Frequently asked questions.
- Federal Funds
Rate: This is the
interest rate that banks with excess reserves at a Federal Reserve
district bank charge other banks that need overnight loans. The Fed
Funds rate, as it is called, often points to the direction of U.S.
- Fire: Stock that is hot, rising fast.
- Flex Options: Exchange traded equity or index
options, where the investor can specify within certain limits, the
terms of the options, such as exercise price, expiration date, exercise
type, and settlement calculation.
- Float: This is the number of freely traded
shares in the hands of the public. Float is calculated as Shares
Outstanding minus Shares Owned by Insiders, 5% Owners, and Rule 144
- Free Cash Flow,
Annual: This value is
calculated from the most recent annual Statement of Cash Flows. It is
calculated as Cash From Operations minus Capital Expenditures and
- Free Cash Flow
Per Share, TTM(Trailing Twelve Months) ($ per share): This is the trailing twelve month
Free Cash Flow divided by the trailing twelve month Average Shares
Outstanding found on the Income Statement.
- Front Running: People own the stock then promote it
- FS: Forward split.
- Futures Contract: This is an agreement that allows an
investor to buy or sell a commodity, like gold or wheat, or a financial
instrument, like a currency, at some time in future. A future is part
of a class of securities called derivatives, so named because such
securities derive their value from the worth of an underlying
- FWTW: For what it's worth.
- FYI: For your information.
- GAAP (General
Accepted Accounting Principles): Conventions, rules and procedures that define general
accounting practice, including broad guidelines as well as detailed
- GAL: Get a life.
- Gapper, Gapping,
Gapolla: Stock that
moves from its previous closing price before the market opens.
- GMTA: Great minds think alike.
- Gold - GOX: The CBOE Gold Index - (GOX) is an
equal-dollar- weighted index composed of 10 companies involved
primarily in gold mining and production. The index is re-balanced after
the close of business on expiration Friday on the March quarterly cycle.
- Gross Margin, 5
Year Average (%):
This value is calculated by first determining the Gross Margin for each
of the 5 most recent fiscal years and then averaging the values. Gross
Margin is Total Revenue minus Cost of Goods Sold divided by Total
Revenue and is expressed as a percentage.
- Gross Margin,
TTM(Trailing Twelve Month) (%): This value measures the percent of revenue left after paying
all direct production expenses. It is calculated as the trailing 12
months Total Revenue minus the trailing 12 months Cost of Goods Sold
divided by the trailing 12 months Total Revenue and multiplied by 100.
- GUI: Graphical User Interface (What you
see when using software).
- Head &
technical analysis, a chart formation in which a stock price reaches a
peak and declines, rises above its former peak and again declines and
rises again but not to the second peak and then again declines. The
first and third peaks are shoulders, while the second peak is the
formation's head. Technical analysts generally consider a head &
shoulders formation to be a very bearish indication.
- Head Fake: Stock Price heading up or down
contrary to ones opinion.
- Hedge: The buying or selling of offsetting
positions in order to provide protection against an adverse change in
price. A hedge may involve having positions in the cash market, the
futures market and/or options. A conservative strategy used to limit
investment loss by effecting a transaction which offsets an existing
- Hedged Portfolio: A portfolio consisting of the long
position in the stock and the short position in the call option, so as
to be riskless and produce a return that equals the risk-free interest
- Hedging: A strategy designed to reduce
investment risk using call options, put options, short selling, or
futures contracts. A hedge can help lock in existing profits. Its
purpose is to reduce the volatility of a portfolio, by reducing the
risk of loss.
- Holder: The purchaser of an option.
- HTH: Hope this helps, or Hope that helps.
- IMHO: In My Honest Opinion, In My Humble
- IMO: In My Opinion.
- Income After
Taxes: Also known as
After Tax Income for the most recent quarter, this is the money
remaining after all expenses and taxes have been paid, but before any
adjustments have been made.
- Income Before
Taxes: Also known as
Pretax Income and Earnings Before Taxes, this is Total Revenue minus
Total Expenses plus Non-operating Income (Expenses).
- Income for
Primary/Basic EPS (Earnings Per Share): This is the dollar amount accruing
to common shareholders for dividends and retained earnings. Income
Available to Common Shareholders is calculated as Income After Taxes
plus Minority Interest and Equity in Affiliates plus Preferred
Dividends, General Partner Distributions and US GAAP Adjustments.
- Indicated Annual
Dividend ($): This
value is the total of the expected dividend payments over the next
twelve months. It is generally the most recent cash dividend paid or
declared multiplied by the dividend payment frequency, plus any
recurring extra dividend.
- Initial Public
Offering (IPO): An
IPO is stock in a company that is being traded on an exchange for the
first time. Investors first read a prospectus that describes the
potential of the company and the risks of investing in it.
- Insiders: These are directors and senior
officers of a corporation -- in effect those who have access to inside
information about a company. An insider also is someone who owns more
than 10 percent of the voting shares of a company.
- Interest Expense: This is the Total Operating and
Non-Operating Interest Expense.
- In-The-Money: A call option is in-the-money if the
strike price is less than the market price of the underlying security.
A put option is in-the-money if the strike price is greater than the
market price of the underlying security. For example, if the March
COMEX silver futures contract is trading at $6 an ounce, a March call
with a strike price of $5.50 would be considered in-the-money by $0.50
- Intrinsic Value: The amount by which an option is
in-the- money (see above definition). An option which is not in-the-
money has no intrinsic value.
- Inventories: This consists of direct materials,
work-in-process, and finished goods ready for sale.
Turnover, TTM(Trailing Twelve Months): This value measures how quickly the
Inventory is sold. It is defined as Cost of Goods Sold for the trailing
twelve months divided by Average Inventory. Average Inventory is
calculated by adding the inventory for the 5 most recent quarters and
dividing by 5.
- IOW: In Other Words.
- IPO: Initial Public Offering.
- IRC: Internet Relay Chat (Network for live
- IRL: In Real Life.
- Issue: A particular financial asset.
- Junk Bond: A bond with a speculative credit
rating of BB or lower is a junk bond. Such bonds offer investors higher
yields than bonds of financially sound companies. Two agencies,
Standard & Poors and Moody's Investor Services, provide the rating
systems for companies' credit.
- Lagged, Lagg: Long delay between sending and
receiving data over the Internet.
- LEAPSŪ: Long-term Equity Anticipation
Securities, or LEAPSŪ, are long-term stock or index options. LEAPSŪ,
like all options, are available in two types, calls and puts, with
expiration dates up to three years in the future.
- Limit Order: Investors can place an order to buy
or sell securities at a set price. The trade can take place only at
that price or a better one.
- LOL: Laugh out loud or Laughing out loud.
- Long: One who has bought a contract(s) to
establish a market position and who has not yet closed out this
position through an offsetting sale; the opposite of short. Also an
investor that owns the security is said to be long the stock.
- Long Position: A position wherein an investor's
interest in a particular series of options is as a net holder (i.e.,
the number of contracts bought exceeds the number of contracts sold).
Also an investor that owns the security is said to be long the stock.
- Long Term Gain: A gain on the sale of a capital
asset where the holding period was twelve months or more and the profit
was subject to the long term capital gains tax.
- Margin: The sum of the money which must be
deposited, and maintained, in order to provide protection to both
parties to a trade. The Exchange establishes minimum margin amounts.
Brokerage firms often require margin deposits that exceed Exchange
minimums. In turn, they post and maintain customer margin with the
Clearing Corporation. Buyers of options do not have to post margin
since their risk is limited to the option premium. This allows
investors to buy securities by borrowing money from a broker. The
margin is the difference between the market value of a stock and the
loan a broker makes.
- Margin Calls: Additional funds which the investor
may be called upon to deposit if there is an adverse price change or if
margin requirements are increased. Buyers of options are not subject to
Requirement (for Options): The amount an uncovered (naked) option writer is required to
deposit and maintain to cover a position. The margin requirement is
Price per share multiplied by the total number of shares outstanding;
also the market's total valuation of a public company.
- Market Makers or
MM: The NASD member
firms that use their own capital, research, retail and/or systems
resources to represent a stock and compete with each other to buy and
sell the stocks they represent. There are over 500 member firms that
act as Nasdaq Market Makers. One of the major differences between The
Nasdaq Stock Market and other major markets in the U.S. is Nasdaq's
structure of competing Market Makers. Each Market Maker competes for
customer order flow by displaying buy and sell quotations for a
guaranteed number of shares. Once an order is received, the Market
Maker will immediately purchase for or sell from its own inventory, or
seek the other side of the trade until it is executed, often in a
matter of seconds.
- Market Order: A Market Order is an order to buy or
sell a stock at the market's current best displayed price.
- Market Value: The market price; the price at which
buyers and sellers trade similar items in an open marketplace. The
current market price of a security as indicated by the latest trade
- Maturity Date: The date on which the principal
amount of a bond is to be paid in full.
- MB: Message Board.
- Mean: The mathematical average of a range
of numbers (calculated by dividing the sum total of all the items in
the range by the total number of items in the range).
- Median: The middle number in a defined
distribution; when looking at estimates, median refers to the estimate
above and below which lie an equal number of estimates for the period
- MIRC: Internet Chat Program.
- MOMO: Momentum stock, lots of interest and
buyers for hours, days or weeks.
- Money Market Fund: Open-ended mutual fund that invests
in commercial paper, banker's acceptances, repurchase agreements,
government securities, certificates of deposit, and other highly liquid
and safe securities, and pays money market rates of interest. The
fund's net asset value remains a constant $1 a share, only the interest
rate goes up or down.
- Moving Average: Moving Average is a technique to
filter out noise and to uncover trends. The average is calculated by
adding a set of data, then dividing the sum by the period. The result
is a smoothed version of a trend. A reversal in trend is identified
when the price crosses the Moving Average line (a crossover). The
longer the Moving Average time span, the more significant the crossover
signal. A price line that penetrates a 20 day MA is not as significant
as one that penetrates a 200 day MA. To confirm a valid crossover many
traders wait for the penetration to reach a predetermined percentage of
price, or number of days. Although many different time periods are
commonly used, 20 days is appropriate for short-term trading, 50 days
for intermediate term trading and 200 days for long term trading.
- Municipal Bond: State or local government offer muni
bonds, as they are called, to pay for special projects such as highways
or sewers. The interest that investors receive is exempt from some
- Mutual Fund: Fund operated by an investment
company that raises money from shareholders and invests it in stocks,
bonds, options, commodities or money market securities.
- Naked Option
unhedged strategy making exclusive use of one of the following: Long
call strategy (buying call options ), short call strategy (selling or
writing call options), Long put strategy (buying put options ), and
short put strategy (selling or writing put options). By themselves,
these positions are called naked strategies because they do not involve
an offsetting or risk-reducing position in another option or the
- Naked Strategies: When you write an option without
owning the underlying asset. You are naked because often you agreed to
sell something that you do not own.
- Naked Writer: Writing a call or a put on a
security in which the writer has no opposite cash or security position.
This is also known as uncovered writing.
- Nasdaq: The Natinal Association of
Securities Dealers Automated Quotation. A system designed to give
automatic quotes on stocks normally via a computer.
- Nasdaq Composite
Index - Listed Companies in this Index: The Nasdaq Composite Index measures
all Nasdaq domestic and non-U.S. based common stocks listed on The
Nasdaq Stock Market. The Index is market-value weighted. This means
that each company's security affects the Index in proportion to it's
market value. The market value, the last sale price multiplied by total
shares outstanding, is calculated throughout the trading day, and is
related to the total value of the Index.
- Nasdaq National
Market Securities (NMS): The Nasdaq National Market consists of over 3,000 companies
that have a national or international shareholder base, have applied
for listing, meet stringent financial requirements and agree to
specific corporate governance standards. To list initially, companies
are required to have significant net tangible assets or operating
income, a minimum public float of 500,000 shares, at least 400
shareholders, and a bid price of at least $5. The Nasdaq National
Market operates from 9:30 A.M. to 4:00 P.M. EST, with extended trading
in SelectNet from 8:00 A.M. to 9:30 A.M. EST and from 4:00 P.M. and
5:15 P.M. EST.
- Nasdaq SmallCap
The Nasdaq SmallCap Market comprises of over 1,400 companies that want
the sponsorship of Market Makers, have applied for listing and meet
specific and financial requirements. Once a company is approved and
listed on this market, Market Makers are able to quote and trade the
company's securities through a sophisticated electronic trading and
surveillance system. The Nasdaq SmallCap Market operates from 9:30 A.M.
to 4:00 P.M. EST., with extended trading in SelectNet from 8:00 A.M. to
9:30 A.M. EST and from between 4:00 P.M. and 5:15 P.M. EST.
- Nasdaq-100 Index
- List Companies in this Index: The Nasdaq-100 Index includes 100 of the largest
non-financial domestic companies listed on the Nasdaq National Market
tier of The Nasdaq Stock Market. Launched in January 1985, each
security in the Index is proportionately represented by its market
capitalization in relation to the total market value of the Index. The
Index reflects Nasdaq's largest growth companies across major industry
groups. All index components have a minimum market capitalization of
$500 million, and an average daily trading volume of at least 100,000
Association of Securities Dealers, Inc. NASD: The self-regulatory organization of
the securities industry responsible for the regulation of The Nasdaq
Stock Market and the over-the-counter markets. The NASD operates under
the authority granted it by the 1938 Maloney Act Amendment to the
Securities Exchange Act of 1934.
- Net Asset Value
(NAV): The market
value of a fund share, synonymous with a bid price. In the case of
no-load funds, the NAV, market price, and offering price are all the
same figure, which the public pays to buy shares; load fund market or
offer prices are quoted after adding the sales charge to the net asset
value. NAV is calculated by most funds after the close of the exchanges
each day by taking the closing market value of all securities owned
plus all other assets such as cash, subtracting all liabilities, then
dividing the result (total net assets) by the total number of shares
outstanding. The number of shares outstanding can vary each day
depending on the number of purchases and redemptions.
- Net Change: The difference between today's last
trade and the previous day's last trade. The difference between today's
closing Net Asset Value (NAV) and the previous day's closing Net Asset
- Net Income: Income after all expenses and taxes
have been deducted, and used in calculating a variety of profitability
and stock performance measures.
- Net Profit
Margin, TTM(Trailing Twelve Months) (%): Also known as Return on Sales, this
value is the Income After Taxes for the trailing twelve months divided
by Total Revenue for the same period and is expressed as a percentage.
- Net Revenue: This is the sum of all revenue
(sales) reported for all operating divisions.
- NEWBEE: New user of Internet and/or computer.
- NYSE: New York Stock Exchange
- NYSE Composite
Index - NYSE: The
NYSE Composite Index - (NYSE) is a market value-weighted index which
relates all NYSE stocks to an aggregate market value as of Dec. 31,
1965, adjusted for capitalization changes. The base value of the index
is $50 and point changes are expressed in dollars and cents.
- NICK: Name used by people (Individual) on
- No Load Fund: Mutual Fund offered by an open end
investment company that imposes no sales charge (load) on its
shareholders. Investors buy shares in no-load funds directly from the
fund companies, rather than through a broker as is done in load funds.
Many no-load fund families allow switching of assets between stock,
bond, and money market funds. The listing of the price of a no-load
fund in the newspaper is accompanied by the designation NL. The net
asset value, market price and offer prices of this type of fund are
exactly the same, since there is no sales charge.
- NUKE: "Denial of Service Attack" that will
crash your computer forcing you to reboot.
- OFFER: Current price a stock may be readily
- OT: Off Topic, used on message boards
when the post is not on the threads subject.
- Open-End Mutual
Fund: A fund that
sells its shares at net asset value is an open-end fund. It creates
shares as investors demand them. Investors buy the shares at their
market price. Most mutual funds are open-end funds. Those that aren't
are closed-end funds that sell a fixed number of shares to investors.
- Opening Purchase: A transaction in which the
purchaser's intention is to create or increase a long position in a
given series of options.
- Opening Sale: A transaction in which the seller's
intention is to create or increase a short position in a given series
- Open Interest: The number of outstanding option
contracts in the exchange market or in a particular class or series.
- Open Order: An order to buy or sell a security
that remains in effect until it is either canceled by the customer or
- Option: An instrument that gives the owner
the right to buy or sell a specified number of shares of a specified
stock at a specified price within a specified period of time. Gives the
buyer the right, but not the obligation, to buy or sell an asset at a
set price on or before a given date. Investors, not companies, issue
options. Buyers of put options bet the stock's price will go down below
the price set by the option. An option is part of a class of securities
called derivatives, so named because these securities derive their
value from the worth of an underlying investment.
- Option Adjusted
Spread (OAS): (1) The spread over an issuer's spot
rate curve, developed as a measure of the yield spread that can be used
to convert dollar differences between theoretical value and market
price. (2) The cost of the implied call
embedded in a MBS, defined as additional basis-yield spread. When added
to the base yield spread of an MBS without an operative call produces
the option-adjusted spread.
- Option Clearing
The issuer of standardized options traded on exchanges. OCC is owned by
the options markets.
- Option Contract: A contract that, in exchange for the
option price, gives the option buyer the right, but not the obligation,
to buy (or sell) a financial asset at the exercise price from (or to)
the option seller within a specified time period, or on a specified
date (expiration date).
- Option Contract
Multiple: A constant,
set at $100, which when multiplied by the cash index value gives the
dollar value of the stock index underlying an option. That is, dollar
value of the underlying stock index = cash index value x $100 (the
options contract multiple).
- Option Elasticity: The percentage increase in an
option's value given a 1% change in the value of the underlying
- Option Not To
Deliver: In the
mortgage pipeline, an additional hedge placed in tandem with the
forward or substitute sale.
- Option On
rate options written on fixed- income securities, as opposed to those
written on interest rate futures contracts.
- Option Premium: The option price over the "in the
money" total. If not in the money the entire option cost is the premium.
- Option Price: The price paid by the buyer of the
options contract for the right to buy or sell a security at a specified
price in the future. Includes any "in-the-money" plus the writers
- Option Prices
Reporting Authority (OPRA) : A joint industry plan that disseminates inside quotations
and last sale data for options.
- Option Seller: Also called the option writer, the
party who grants a right to trade a security at a given price in the
- OEM: Original Equipment Manufacturer.
- Out-Of-The-Money: A call option is out-of-the-money if
the strike price is greater than the market price of the underlying
security. A put option is out-of-the-money if the strike price is less
than the market price of the underlying security.
- Over-The-Counter : The O-T-C market is for securities
not carried on a listed stock exchange.
- PPL: People.
- PIC: Picture.
- Pivot: Price level established as being
significant by market's failure to penetrate or as being significant
when a sudden increase in volume accompanies the move through the price
- POINT: Dollar or Stick.
- Preferred Shares: Preferred shares give investors a
fixed dividend from the company's earnings. And more importantly:
preferred shareholders get paid before common shareholders in the event
of a bankrupcy or liquidation of assets.
- Premium: Is the amount the seller is charging
you for the option over and above any "in-the-money" value. The price
of an option, the sum of money arrived at in the competitive market,
which the option buyer pays and the option writer receives for the
rights granted by the option.
- P/B Ratio
(Price/Book Ratio): A
stock analysis statistic in which the price of a stock is divided by
the reported book value (as of the date specified).
- P/C Ratio
(Price/Cash Flow Ratio): A financial ratio that compares stock price with cash flow
from operations per outstanding shares.
- P/E Ratio
A stock analysis statistic in which the current price of a stock is
divided by the reported actual (or sometimes projected, which would be
forecast) earnings per share of the issuing firm; it is also called the
- P/S Ratio
A financial ratio that compares stock price with sales per share (or
market value with total revenue).
- Prime Rate: The interest rate banks charge,
determined by market forces affecting a bank's cost of funds and the
rates the borrowers will accept. This rate tends to become standard for
the banking industry when a major bank raises or lowers its rate.
- PRN: PRNewswire (news service).
- PM: Private message.
- PD: Pump and Dump. Front running, people
own the stock then promote it while selling.
- Put: An option granting the right to sell
the underlying futures contract. Opposite of a call.
- Put An Option: To exercise a put option.
- Put Option: A put option is what you buy if you
think the stock is going down in price. An option which gives the
option buyer the right to sell (go short) the underlying security at
the stike price on or before the expiration date.
- Put Price: The price at which the asset will be
sold if a put option is exercised. Also called the strike or exercise
price of a put option.
- Put Provision: Gives the holder of a floating-rate
bond the right to redeem his note at par on the coupon payment date.
- Put Swaption: A financial tool in which the buyer
has the right, or option, to enter into a swap as a floating-rate
payer. The writer of the swaption therefore becomes the floating-rate
- Quarterly Report
(10 Q): A report,
which public companies are required to file quarterly with the SEC,
that provides unaudited financial information and other selected
- Quick Ratio
(MRQ(Most Recent Quarter): Also known as the Acid Test Ratio, this ratio is defined as
Cash plus Short Term Investments plus Accounts Receivable for the most
recent fiscal quarter divided by the Total Current Liabilities for the
- Real-time Trade
requirement imposed on Market Makers (and in some instances, non-Market
Makers) to report each trade immediately after completion of the
transaction. Stocks traded on The Nasdaq Stock Market are subject to
real-time trade reporting within 90 seconds of execution.
Turnover, TTM(Trailing Twelve Months): This is the ratio of Total Revenue
for the trailing twelve months divided by Average Accounts Receivables.
Average Receivables is calculated by adding the Accounts Receivables
for the 5 most recent quarters and dividing by 5.
- Receivables: This represents money owed to the
company by customers for goods sold or services rendered, but not yet
collected. This includes the trade receivables, finance receivables,
and sales receivables.
- Relative Strength: By graphing the stock price divided
by the S&P 500, you can see the performance of the stock compared
to the general market. A rising RS line means the security is
outperforming the market, and the opposite is true of a declining RS
line. Relative strength typically peaks before price. Therefore it is a
good indicator of trend reversals. When both price and RS reach new
highs in concert it is a sign of unusual strength.
- Reloading: To buy again or to enter in the
order for a buy or sell in the browser window but not yet hitting the
send button so as to be prepared for news or movement.
- Retained Earnings: Net profits kept to accumulate in a
business after dividends are paid.
- Retracement: A price movement in the opposite
direction of the previous trend.
- Return of Capital: A distribution of cash resulting
from depreciation tax savings, the sale of a capital asset or of
securities in a portfolio, or any other transaction unrelated to
- Return on Equity: (net income divided by shareholders'
equity) a measure of the net income that a firm is able to earn as a
percent of stockholders' investment.
- Return on Total
Assets: (net income
divided by total net assets) a measure of the net income that a firm's
management is able to earn with the firm's total assets.
- ROFL: Rolling on Floor Laughing.
- ROFLMAO: Rolling on the floor laughing my a**
- Sales (Revenue)
Per Share, TTM(Trailing Twelve Months) ($ per share): This value is the trailing twelve
month Total Revenue divided by the Average Diluted Shares Outstanding
for the trailing twelve months.
- SCALP(S): A quick trade for a 1/16 or more.
- Secondary Market: A market that provides for the
purchase or sale of previously sold or bought options through closing
- Securities and
Exchange Commission SEC: The federal agency created by the Securities Exchange Act of
1934 to administer that act and the Securities Act of 1933. The
statutes administered by the SEC are designed to promote full public
disclosure and protect the investing public against fraudulent and
manipulative practices in the securities markets. Generally, most
issues of securities offered in interstate commerce or through the
mails must be registered with the SEC.
- Seller: Also known as the option writer or
grantor. The sale of an option may be in connection with either an
opening transaction or a closing transaction.
- Series: Options: All option contracts of the
same class that also have the same unit of trade, expiration date, and
exercise price. Stocks: shares which have common characteristics, such
as rights to ownership and voting, dividends, par value, etc. In the
case of many foreign shares, one series may be owned only by citizens
of the country in which the stock is registered.
- Settlement Date: The date specified for delivery of
securities between securities firms, usually three business days after
the execution of an order.
Outstanding: This is
the number of shares outstanding at the end of a fiscal period as
reported in the Balance Sheet. This is the number of shares issued
minus the shares held in Treasury.
- Short: One who has sold a contract to
establish a market position and who has not yet closed out this
position through an offsetting purchase; the opposite of a long
position. Also the term short means selling something not owned with
the intent to purchase it at a better price at a later date.
- Short Interest: The total number of shares of a
security that have been sold short by customers and securities firms
that have not been repurchased to settle short positions in the market.
- Short Position: A position wherein a person's
interest in a particular series of options is as a net writer (i.e.,
the number of contracts sold exceeds the number of contracts bought).
- Short Selling: Short selling is the selling of a
security that the seller does not own, or any sale that is completed by
the delivery of a security borrowed by the seller. Short selling is a
legitimate trading strategy. Short sellers assume the risk that they
will be able to buy the stock at a more favorable price than the price
at which they sold short.
- Short Term Debt: This is debt that comes due within
- Slippage: The difference between estimated
transaction costs and actual transaction costs. The difference is
usually composed of a price difference and commission costs.
- SBPO: Small business public offering.
- SOES: Small order execution system.
- Split: Sometimes, companies split their
outstanding shares into larger number of shares. If a company with one
million shares did a two-for-one split, the company would have two
million shares. An investor, for example, with 100 shares before the
split would hold 200 shares after the split. The investor's percentage
of equity in the company remains the same.
- Spread: (1) The gap between bid and ask
prices of a stock or other security. (2) The simultaneous purchase and
sale of separate futures or options contracts for the same commodity
for delivery in different months. Also known as a straddle. (3)
Difference between the price at which an underwriter buys an issue from
a firm and the price at which the underwriter sells it to the public.
(4) The price an issuer pays above a benchmark fixed-income yield to
- Standard and
Poor’s 500 - $SPX:
The S&P 500 index - ($SPX), more formally known as the S&P 500
Composite Stock Price Index, is a european-style,
capitalization-weighted index (shares outstanding multiplied by stock
price) of 500 stocks that are traded on the New York Stock Exchange,
American Stock Exchange and Nasdaq National Market.
- STICK: One point or dollar.
- Straddle: A combination in which the put and
the call have the same strike price and expiration.
- Strike Price: The stated price per share for which
the underlying security may be purchased (in the case of a call) or
sold (in the case of a put) by the option holder upon exercise of the
- Tank, Tanking: Stock thats price is falling.
- Teenie: 1/16th.
- Thread: A series of messages on a message
board or other means that generally have the same topic.
- TICK: Can mean the last movement in a
issues price (up tick or down tick). Also a market indicator. As a
market indicator quote systems keep track of the up ticks and down
ticks of stocks through out the day. The tick shown will be the
difference between the up ticks and down ticks for that day so far. A
positive number means there have been that many more up ticks than down
and a negative number means the opposite.
- Time Value: The portion of the option premium
that is attributable to the amount of time remaining until the
expiration of the option contract. Time value is whatever value the
option has in addition to its intrinsic value.
- Total Assets: This is the sum of all short and
long term asset categories.
- Total Current
Assets: This value is
the sum of all current assets reported for the most recent time list.
- Total Current
value is the sum of all current liabilities reported for the selected
- Total Debt: Total Debt is the sum of Short Term
Debt, the Current Portion of Long Term Debt and Capitalized Lease
Obligations, Long Debt and Capitalized Lease Obligations.
- Total Debt To
Total Equity (MRQ) (Most Recent Quarter): This ratio is Total Debt for the
most recent fiscal quarter by Total Shareholder Equity for the same
- Total Equity: This is the sum of all the
individual equity line items on the quarterly Balance Sheet.
- Total Liabilities: This is the sum of all current and
long term liabilities reported.
- Total Operating
Expenses: This is the
total of the individual operating expense line items.
- TRIN: A market indicator used in technical
analysis, calculated as follows: TRIN = (number of advancing issues
divided by number of declining issues) divided by (Total up volume
divided by Total down volume). A value of less than 1 is bullish,
greater than 1 bearish, also called Arms Index.
- Triple-Witching: This occurs on the third Friday of
March, June, September and December when futures and stock options,
based on the S&P 500 index, all expire on the same day.
- Two Sided Market: The obligation imposed by the NASD
that Nasdaq Market Makers make both firm bids and firm asks in each
security in which they make a market.
- Type: The classification of an option
contract as either a put or a call.
- Uncovered Call
Writing: A short call
option position in which the writer does not own an equivalent position
in the underlying security represented by his option contracts.
- Uncovered Put
Writing: A short put
option position in which the writer does not have a corresponding short
position in the underlying security or has not deposited, in a cash
account, cash or cash equivalents equal to the exercise value of the
- Underlying: The "something" that the parties
agree to exchange in a derivative contract.
specific security that can be bought or sold by the exercise of the
option contract. For example, IBM stock is the underlying security to
IBM options. Depository receipts: The class, series and number of the
foreign shares represented by the depository receipt.
- Underwriter: The investment banking firm that
brought the company public. In the IPO Summary section we include both
the primary Underwriter, called the Lead Manager and the Co-Manager,
- URL: Uniform Resource Locater, Internet
address of a web page (http:www.sitename.)
- UT: Up tick in the price of a stock,
Price moved up.
- Volatility: A measure of the fluctuation in the
market price of the underlying security. Mathematically, volatility is
the annualized standard deviation of returns.
- Warrant: This piece of paper gives an
investor the right to purchase securities at a fixed price within a
fixed time span. Warrants are like call options, but with much longer
time spans -- sometimes years.
- WEBS: World Equity Benchmark Shares --
WEBS Index Shares represent a new approach to international investing,
offering passive index management and facilitating targeted portfolio
exposure. There's a WEBS Index Series for each of 17 countries. Each
WEBS Index Series seeks to track the performance of a specific MSCI
Index. Many of these indices have been used by investment professionals
for more than 25 years. WEBS are listed on the American Stock Exchange
and trade like any other stock.
- Writing: The seller of an option, usually an
individual, bank, or company, that issues the option and consequently
has the obligation to sell the asset ( if a call) or to buy the asset
(if a put) on which the option is written if the option buyer exercises
- WTF: Potty Mouth!
- Yield: In general, a return on an
investor's capital investment. For bonds, the coupon rate of interest
divided by the purchase price, called current yield. Also, the rate of
return on a bond, taking into account the total of annual interest
payments, the purchase price, the redemption value, and the amount of
time remaining until maturity.
- Zero Coupon Bond : Such a debt security pays an
investor no interest. It is sold at a discount to its face price and
matures in one year or longer.
- ZZZZZZ: Sleeping or Bored.