Glossary of stock market terms

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Following is a glossary of stock market terms.

  • All or none or AON: in investment banking or securities transactions, "an order to buy or sell a stock that must be executed in its entirety, or not executed at all".[1]
  • Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock.[2]
  • Bear market: a general decline in the stock market over a period of time. See Market trend.
  • Bookrunner: in investment banking, usually the main underwriter or lead-manager/arranger/coordinator in equity, debt, or hybrid securities issuances.[3]
  • Bull market: a period of generally rising prices. See Market trend.
  • Closing print: a report of the final prices for the day on a stock exchange.
  • Fill or kill or FOK: "an order to buy or sell a stock that must be executed immediately"—a few seconds, customarily—in its entirety; otherwise, the entire order is cancelled; no partial fulfillments are allowed.[4]
  • Green sheet: a document that accompanies a prospectus for most initial public offerings, and describes the basic terms of the offering that are of the most important to a registered representative.
  • Greenshoe: A special arrangement in a share offering, for example an IPO, which enables the investment bank representing the underwriters to support the share price after the offering without putting their own capital at risk.[5]
  • Immediate or cancel, IOC, or accept order: "an order to buy or sell a stock that must be executed immediately"; if the entire order is not available at that moment for purchase a partial fulfillment is possible, but any portion of an IOC order that cannot be filled immediately is cancelled, eliminating the need for manual cancellation.[6][7]
  • Initial public offering or IPO: a type of public offering in which shares of a company are sold to institutional investors.
  • Institutional investor: an entity which pools money to purchase securities, real property, and other investment assets or originate loans.
  • Market top: the highest point of trading before the market shifts from a bull market to a bear market.
  • Market trend: the tendency of financial markets to move in a particular direction over time.[8]
  • Public float or Free float: the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government.
  • Pump and dump or P&D: a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price.[9]
  • Runoff or run-off: the period at the end of a stock market trading session originally reserved for printing end-of-trading share prices and values onto ticker tape;[10] now used to describe trades at the end of a session that may not be announced or reported until the start of the next session.
  • Stub: the stock representing the remaining equity in a corporation left over after a major cash or security distribution from a buyout, a spin-out, a demerger or some other form of restructuring removes most of the company's operations from the parent corporation.[11]
  • Trade, the buying and selling of financial instruments.
  • Widow-and-orphan stock: a stock that reliably provides a regular dividend while also yielding a slow but steady rise in market value over the long term.[12]
  • Witching hour: the last hour of stock trading between 3 pm (when the bond market closes) and 4 pm EST (when the stock market closes), which can be characterized by higher-than-average volatility.[13]
  • Yellow strip price or Touch price: in the UK stock market (LSE), the highest bid price or lowest offer price, shown on the SEAQ or SETS screen in a yellow strip.[15]

References[edit]

  1. ^ "All-Or-None Order". Answers. U.S. Securities and Exchange Commission. Retrieved 22 March 2013.
  2. ^ Investorwords.com
  3. ^ "Book Runner", Investopedia.
  4. ^ "Fill-Or-Kill Order". U.S. Securities and Exchange Commission. 10 March 2011. Retrieved 22 March 2013.
  5. ^ Martin, Alexander, "Line Raises IPO Price Range to Meet Strong Demand", Wall Street Journal, July 4, 2016. Retrieved 2016-07-04.
  6. ^ Tatum, Malcolm. "What Does "Immediate or Cancel" Mean?". wiseGEEK. Retrieved 22 March 2013.
  7. ^ "Immediate-Or-Cancel Order". U.S. Securities and Exchange Commission. Retrieved 22 March 2013.
  8. ^ Start Market Course, George Fontanills, Tommy Gentile, John Wiley and Sons Inc. 2001, p. 91.
  9. ^ "Pump and Dump Schemes". U.S. Securities and Exchange Commission. March 12, 2001.
  10. ^ See e.g. Investopedia definition of runoff
  11. ^ S Definitions: Campbell R. Harvey's Hypertextual Finance Glossary.
  12. ^ "Widow-and-orphan Stock Definition - What is Widow-and-orphan Stock?". Investorglossary.com. Retrieved 2014-02-20.
  13. ^ "Witching Hour Definition". Investopedia. Retrieved 2011-10-01.
  14. ^ Saddler, Rick (June 25, 2014). "What is triple witching?". Hit & Run Candlesticks. Retrieved July 1, 2016. This daylong event, which is sometimes referred to as “Freaky Friday,” is an important day for short-term investors because the markets tend to be turbulent and unpredictable, shifting erratically as traders attempt to offset their orders before the closing bell rings.
  15. ^ Reuters Glossary - Yellow strip.