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Secondary CD
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Previously owned, non-callable CD's that an
investor has sold prior to maturity. These are being re-offered in the
secondary market and can either be more or less than the original cost.
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Secondary Market
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Exchanges and over-the-counter markets where
securities are bought and sold subsequent to original issuance, which took
place in the primary market. Proceeds of secondary market sales accrue to
the selling dealers and investors, not to the companies that originally
issued the securities.
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Selling Short
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Selling a stock as an opening transaction
instead of purchasing stock. The customer must meet certain margin
requirements to sell short and the brokerage firm must be able to borrow
the stock that the customer wants to sell short.
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Settlement Date
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Date by which an executed order must be
settled, either by a buyer paying for the securities with cash or by a
seller delivering the securities and receiving the proceeds of the sale.
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Share Class
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A fund may offer different classes of shares
such as A, B or C. Share classes represent ownership in the same mutual
fund. The way the fund is paid for depends on the share class purchased.
This allows the client the option to choose the sales charge that best
suits his investment needs and objective.
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Shelf Registration
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The term used for SEC Rule 415, which allows
a corporation to comply with registration requirements up to two years
prior to a public offering of securities.
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Short Against the Box
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Selling short stock owned long by the seller
in the same account.
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Short Position
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Stock shares that an individual has sold
short and has not covered as of a particular date. Sale of a stock not owned
by the seller.
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Short Put
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A put option grants the right to sell at a
specified price a specific number of shares by a certain date. A short put
is someone who has sold this right in exchange for a premium. The put option
seller (called a writer) hopes the stock will remain stable, rise or drop
by an amount less than his or her profit on the premium.
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Simplified Employee Pension (SEP) IRA
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Pension plan in which both the employee and employer
contribute to an IRA.
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Sinking Fund
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Money accumulated on a regular basis in a
separate custodial account that is used to redeem debt securities or
preferred stock issues.
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Special Memorandum Account (SMA)
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A memorandum account of the funds in excess
of the margin requirement. The account is maintained essentially so that
the broker can gauge how far the customer might be from a margin call.
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Stock Certificate
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A paper certificate of ownership of a
corporation showing the number of shares, name of issuer, amount of par or
stated value represented or a declaration of no-par value, and rights of
the shareholder. A preferred stock certificate will also list the issuer's
responsibilities with respect to dividends and voting rights, if any.
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Stock Dividend
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A distribution of earnings to shareholders,
prorated by class of security and paid in the form of stock not cash.
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Stock Split
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Increase in a corporation's number of
outstanding shares of stock without any change in the shareholder's equity
or aggregate market value at the time of the split.
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Stop Limit Order
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An order to buy or sell at a specified price
or better (called the stop-limit price) but only after a given stop price
has been reached or passed. For example, an order to buy 100 XYZ 55 Stop 56
Limit, means that if the market price reaches 55 (stop price) or better (in
the case of a buy, it would be less than 55) the order is then triggered to
execute the order as a limit order at 56 or a better (lower) price.
Stop-limit orders avoid some of the risk a stop order has, but like all
limit orders, carries the risk of missing the market all together, since
the specified limit price or better may never occur.
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Stop Order
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A stop order is an order to buy or sell a
stock once the price of the stock reaches a specified price, known as the stop
price. When the specified price is reached, your stop order becomes a
market order.
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Strike Price
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The price at which the holder can buy or
sell the underlying security from the writer of the option.
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Systematic Redemption
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Plan in which investors establish a regular
redemption of an existing mutual fund position in order to liquidate it.
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