scorched earth a strategy of a company threatened with being taken over of making itself less attractive to the potential acquiring company, achieved by selling off the most desirable part of its business. Also known as shark repellent.
scripophily collecting stock and bond certificates for their "collectible" value rather than as securities, as a baseball card collector.
seat a purchased membership on an exchange.
securities stocks, bonds, notes, and similar items.
securities and commodities exchanges where securities, options, and futures contracts are bought and sold.
Securities and Exchange Commission (SEC) a
federal agency that regulates and oversees investment companies, over-the-counter brokers and dealers, investment advisers, and the exchanges to protect the public from fraudulent practices.
selling short selling borrowed stocks in anticipation of a drop in price, after which the stocks may be repurchased at a lower price to make a profit.
shakeout a development in the market that scares investors into selling off their stock.
share a unit of ownership in a corporation or mutual fund.
shareholder an owner of stock in a corporation.
shark one who attempts a hostile takeover of a company; a corporate raider.
shark repellant collective term for any device or strategy used to ward off a hostile takeover attempt.
shark watcher a firm hired to monitor trading in a company's stock in order to detect an impending takeover attempt.
sideways market a flat market.
sleeper a new stock issue with great potential that is overlooked by investors.
sleeping beauty a corporation rich in assets and ripe for a takeover attempt.
soft currency currency that cannot be interchanged with another country's currency, such as the Russian ruble.
SPDRS Standard and Poor's Depository Receipts. A group of ETFs that track the Standard and Poor's index. Also known as spiders.
speculation investing in high-risk securities with the belief they will produce a higher yield.
speculator one who trades in high-risk securities.
spiders see spdrs.
split an increase in the number of shares held by corporate shareholders with no change in equity. For example, a two-for-one split would double the number of shares owned but halve their value. A stock split is made to improve the stock's marketability.
spread the difference between a stock's bid and asked price.
stag an investor who regularly purchases then quickly resells securities within a short period of time to make a fast profit.
Standard and Poor's Corp. a company that offers several investment and ratings services.
Standard and Poor's index a measurement of the average up or down movements of 500 widely held common stocks, known as the SP 500.
stock an equity or ownership interest in a corporation through which earnings are paid out according to the number of shares owned. Stock may also entitle the holder to a vote in important corporate affairs.
stock exchange the marketplace where stocks and bonds are traded.
stock watcher a service that monitors trading on the New York Stock Exchange to prevent unethical or fraudulent trading practices.
stop order an order to a broker to buy or sell a security when it reaches a specific price.
Street, the short for Wall Street.
street name securities held in the name of a broker instead of the name of the owner, as required when securities are purchased on margin.
strip to buy stock only for their dividends.
sweetener a bonus feature tacked on to a security to make it more attractive to investors.
swooner any security that is overly sensitive and reacts poorly to bad news in the marketplace.
tailgating a broker's practice of buying or selling for his own account the same security an influential client has just placed an order on, an unethical use of privileged trading information.
take a flyer to invest in a high-risk security; to speculate.
takeover a buying-out of the controlling interest in a corporation and, in hostile instances, the installment of new management.
target company a corporation that is threatened with a takeover.
TARP Troubled Asset Relief Program, the largest component of the government program in 2008 to address the subprime mortgage crisis by buying assets and equity from financial institutions.
ticker the electronic display of stock exchange trading activity.
toehold purchase the purchase of 5 percent of a takeover target's stock, which requires the buyer to file with the Securities and Exchange Commission if a takeover attempt is forthcoming.
tombstone the plain or unadorned advertisement in a newspaper of a new stock offering.
ton bond investor's slang for $100 million.
toxic asset any asset that cannot be sold without incurring a large loss.
trader one who buys and sells securities.
triple watching hour the massive trading that occurs when options and futures on stock indexes expire on the last trading hour of the third Friday of March, June, September, and December.
turkey a poorly performing investment.
twisting broker's unethical practice of persuading a client to make frequent trades in order to generate more commissions.
undervalued referring to a security that is selling for less than what analysts believe it is worth.
underwriter the investment banker who insures and distributes a corporation's new issue of securities.
undigested securities new stocks or bonds that have yet to be purchased due to a lack of investor interest.
unlisted security a security traded over the counter as distinguished from one traded on the floor of a stock exchange.
volatile a term commonly used to describe an unstable or rapidly fluctuating stock price or stock market.
volume the number of securities traded in a specific period.
voting stock stock that entitles the holder to a vote in important corporate affairs.
Wall Street in lower Manhattan, the financial district where the New York Stock Exchange, American Stock Exchange, and many investment-oriented firms are located. Also known as the Street.
war babies the stock and bonds of companies involved in defense contracts.
war brides war babies.
whipsawed of a security, bought just before its price drops and then resold just before its price rises.
white knight an acquirer or acquiring company that is welcomed by a takeover target.
white squire a white knight who buys less than a controlling interest in a corporation.
widow and orphan stock any very reliable and safe stock that pays high dividends.
zero-coupon bond a long-term investment bond through which interest is only paid at maturity.
QQD AND DRINK
appetizers
angels on horseback oysters wrapped in bacon.