Stock Investment Guide - Stock Market Terminology


Stock Market Terminology
ed in many jurisdictions. Each security holder gets more securities, in direct proportion to the amount of securities they own on the record date; thus, their percentage ownership of the issuer does not change. For example, a two-for-one stock split involves the issuance of two new securities for every old security. Stock Symbol A one-character to three-character, alphabetic root symbol,or alphanumeric symbol which represents an issuer listed on Stock Exchange. Strike Price The price the owner of an option can purchase or sell the underlying security. The purchases and sales are also known as calls and puts. Tt Tick Slang used for minimum spread. Depending on the stock price it could be a half-cent, one cent or five cents. Ticker Tape Each time a stock is bought and sold, it is displayed on an electronic ticker tape. It is a record of current trading activity on an exchange. Trading Halt A trading halt is imposed by the exchange, usually due to the dissemination of news that might impact a stock’s price. A trading halt can also happen if the particular stock index falls a certain percentage. Transaction Date The date when the purchase or sale of a security takes place. Transactions As reported in exchange trading statistics, represents the total number of trades for a specified period. Transferable Security A security that can be transferred from one party holder to another without restrictions, provided that all proper documentation is included. Uu Underlying Interest The specific security, commodity, index or financial instrument that an option or futures contract is traded. Underwriting The purchase for resale of a new issue of securities by an investment dealer or group of dealers who are also known as underwriters. The formal agreements for these transactions are called underwriting agreements. Unlisted A security not listed on a stock exchange, but traded on the over-the-counter market. Uptick A stock is said to be on an uptick when the last trade occurred at a higher price than the one before it. Vv Venture Capital Money raised by companies to finance new ventures. Venture Company A classification of Venture Exchange-listed companies that are in the early stages of development and meet the minimum asset, market value and shareholder distribution requirements for Tier 2 listing. Volatility A statistical measure of changes in price over a period of time. Ww Warrant A security giving the holder the right to purchase securities at a stipulated price within a specified time limit. Exercise of the warrant is solely at the discretion of the holder. Warrants are not exercisable after the expiry date. A warrant is often issued in conjunction with another security as part of a financing. A warrant may be traded as a listed security or it may be held privately. W

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