Financial and Investment Glossary
Financial Dictionary
S&P 500 (Standard & Poor's Composite Index of 500 Stocks)
The market value-weighted index showing the change in the aggregate market value of 500 stocks relative to a base period, as calculated by the Standard & Poor's Corporation.
S&P 500 Funds
Funds that are passively managed, have limited expenses (advisor fee no higher than 0.50%), and are designed to replicate the performance of the Standard & Poor's 500 Index on a reinvested basis.
S&P Rating
A classification of bonds according to risk. S & P's top four grades, "AAA," "AA," "A," and "BBB," are called Investment Grade because they are low-risk investments. Standard & Poor's also evaluates insurance companies according to their ability to pay claims.
Sales Charge
Full-service firms commonly charge a sales commission or load when mutual fund shares are purchased or redeemed, because a financial professional helps you analyze your financial needs and objectives and identify appropriate investments that may meet those needs and objectives. The sales charge is waived for mutual funds purchased through an employer-sponsored retirement plan.
SAR (Stock Appreciation Rights)
For participants in employee stock option plans:
Rights that tie your benefit to the performance of your company, but do not provide the full rights associated with shareholder status. The gain from a SAR is based only on the increase in value per share between the date of the award and the date of surrender. A Stock Appreciation Right may be issued as freestanding, Additive/Attached or as a Tandem SAR.
An Additive or Attached SAR is granted in connection with your employee Stock Options in order to provide you with a source of cash to pay the taxes on your exercise.
A Tandem SAR provides you with a choice of exercising your employee stock option or the SAR, with the exercise of one eliminating the right to exercise the other.
Science & Technology Funds
Fund invests 65% of equity portfolio in science and technology stocks.
SEC 30 Day Yield
Income and dividends earned during the last 30 days on the securities held by in the fund. A fund's yield is expressed as a percentage of the Maximum Offering Price per share on a specified date.
SEC Exch Comm Fee
Securities Exchange Commission Fee. A fee assessed by the Securities and Exchange Commission on a per share basis on trades executed on U.S. exchanges and the NASDAQ market.
Secondary Distribution
The sale is usually not handled on an exchange, but instead is handled by an investment banker or a group of investment bankers. This is also known as a "secondary offering".
Secondary Market
A market that provides for the purchase or sale of previously sold or bought options through closing transactions.
Sector
A way to characterize securities based upon economic sectors. The categories are Financials, Consumer Staples, Consumer Discretionary, Information Technology, Industrials, Materials, Energy, Utilities, Health Care and Telecommunication Services.
Sector Equity Funds
Fund that invests 65% of its portfolio in a specific sector. For example: Health/Biotechnology, Natural Resources, Science and Technology, Utility, Real Estate, Gold or Financial Services.
Sector/Miscellaneous Funds
Fund that limits fund investments to a specific industry (e.g., transportation, retailing, or paper, etc.) or one that has not been classified into an existing investment objective.
Securities and Exchange Commission (SEC)
The government agency responsible for the supervision and regulation of the securities industry and markets, as well as public securities offerings and the ongoing disclosure obligations of public companies.
Securities Exchange Act of 1934
Federal legislation designed to protect the public against inequitable practices on stock exchanges and in over-the-counter markets throughout the United States. It requires periodic full and fair disclosure by public companies. The "Exchange Act" also created the SEC.
Securities Regulatory Organizations
Organizations such as the New York Stock Exchange, NASD Regulation Inc., etc. that are responsible for overseeing the securities markets, for registering and regulating brokerage firms, for overseeing the securities self-regulatory organizations (such as the nation's stock exchanges), and for overseeing other market participants, such as transfer agents and clearing organizations. The organization also sets financial responsibility standards, and regulates trading and sales practices, policies affecting operation of the securities markets and surveillance.
Security
An investment instrument issued by a corporation, government, or other organization that offers evidence of debt or equity.
Security Description
A detailed description of stocks, bonds, funds, and other investment instruments providing various key information.
Related to Annuity/Insurance:
The name of the insurance product.
Security Position
The number of shares held long or short in the account.
Security Value
The estimated market value (price times number of shares) of all priced securities as of the stated Close of Business date.
Sell
An order to sell a security. This is the order or instruction to sell, not the actual sale transaction.
Sell Covered Call
Selling a call option contract to open when the account holds the underlying security.
Sell Fund Symbol
The fund symbol that you are selling when entering a mutual fund exchange
Note: Only mutual funds of the same family and class of shares may be exchanged.
Sell Short
Borrowing a security from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. SEC rules allow investors to sell short only on an uptick or a zero-plus tick.
Sell to Close
Selling an option contract to close out a pre-existing long position.
Serial Bonds
A group of bonds from the same issuer with various maturity dates (an issuer ladder).
Series
All option contracts of the same class that also have the same unit of trade, expiration date and strike price.
Service
Indicates the type of service associated with the account.
Settlement Date
The date by which an executed transaction must be settled.
Share
A single stock unit that represents a portion of company ownership.
Share Balance
The total number of shares available to you through your employee stock option plan recordkeeping account.
Shareholder/Stockholder
An individual who owns stocks in a company and who is entitled to voting privileges and dividends.
Shares Granted
The number of restricted shares awarded to you by your company.
Shares Outstanding
Common Shares outstanding (primary).
Shares Restricted
The number of unvested restricted shares in your recordkeeping account.
Shares to Exercise
The number of restricted shares you wish to model.
Shares Unrestricted
The number of shares for which restriction the has lapsed.
Shares Vested
The number of restricted shares that are available to you in accordance with your Plan's vesting.
Short Investment Grade Debt Funds
Fund invests at least 65% of assets in investment grade debt issues (rated in top four grades) with dollar-weighted average maturities of less than three years.
Short Market Value
The combined total short positions in your account multiplied by the current market prices.
Short Municipal Debt Funds
Fund invests in municipal debt issues with dollar-weighted average maturities of less than three years.
Short Position
A position wherein a person's interest in a particular series of options is as a net seller (writer) (i.e., the number of contracts sold exceeds the number of contracts bought). Also, an investor is in a short position when the investor sells a stock that he or she does not own. The investor is looking for the stock to drop in price so that he or she can buy it lower than what it was sold for and make a profit on the difference.
Short U.S. Government Funds
Fund invests at least 65% of assets in securities issued or guaranteed by the U.S. government, its agencies, or its instrumentalities, with dollar-weighted average maturities of less than three years.
Short U.S. Treasury Funds
Fund invests at least 65% of fund assets in U.S. Treasury bills, notes, and bonds with dollar-weighted average maturities of less than three years.
Short/Long
Security holding periods are measured from trade date to trade date. A security held one year or less is considered Short Term. Securities held for more than one year are considered Long Term. A security is considered a 5-year holding if it is held greater than 5 years. Different capital gains tax rates generally apply to each of the three holding periods.
Sinking Fund
The gradual retirement of the original issue at specified dates (usually coupon dates).
Small-Cap Core Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Core funds have wide latitude in the companies in which they invest. These funds will normally have an average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Small-Cap Growth Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Growth funds normally invest in companies with long-term earnings expected to grow significantly faster than the earnings of the stocks represented in a major unmanaged stock index. These funds will normally have an above-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Small-Cap Value Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Value funds seek long-term growth of capital by investing in companies that are considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. These funds will normally have a below-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Special Memorandum Account
SMA is a line of credit. According to Regulation T, SMA is used to record the excess margin in your account.
Special Memorandum Account Change
Changes to the SMA caused by trades or movement of securities and funds.
Split Date
The date that the split ratio takes effect for a corporation's outstanding shares of stock when a stock split occurs.
Split Ratio
The ratio by which a corporation's number of outstanding shares of stock is adjusted on the split date when a stock split occurs. In a split, the share price becomes a fraction of the pre-split prices.
For example: If a stock par value splits 2-for-1, the number of authorized shares doubles and the price per share drops by half.
Spread
For participants in employee stock option plans:
The difference between the grant price and the current market price.
SSN/TIN
The social security number or tax identification number of the primary client on the account.
Standard & Poor's 500 Index (S&P 500)
This index, also known by its options ticker symbol SPX, measures the overall change in the value of the 500 stocks of the largest firms in the U.S. (The breakdown between industrial, transportation, utilities and financial firms fluctuates depending on the market.)
Standard Deviation
Measures the volatility of a fund's historical returns. When a fund has a high standard deviation, its range of performance has been very wide, indicating greater potential for volatility. A more volatile fund will have a greater difference between its highest historical return and its lowest historical return. More volatile funds may be riskier investments.
State Tax
Securities can be either exempt from or subject to state and local taxes.
Exempt-Interest from the security is free from state and local taxes
Subject-Interest from the security is not free from state and local tax.
State Tax Withholding
Amount of State tax withholding requested.
Statement Date
The statement close of business date.
STEERS
See STructured EnhancEd Return TrustS
Stock
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits.
Stock Dividend
A dividend paid as additional shares of stock rather than as cash.
Stock Holder
Individual or organization with an ownership position in a corporation, and who is entitled to voting privileges and dividends.
Stock Option
For employee stock option plans:
The right to purchase shares of stock at a fixed price over a specified period of time.
Stock Option Grant
For participants in employee stock option plans:
The right to purchase a specific number of shares at a fixed price within a certain period of time subject to the terms of the plan under which the grants are awarded.
Stock Options(Listed)
The right to purchase or sell shares of stock at a fixed price over a specified period of time. Not applicable to employee stock option plan participants.
Stock Power
A power of attorney enabling a person other than the owner to transfer stock ownership to another party. Stock power is sometimes granted when stock is pledged as collateral for a loan.
Stock Split
An increase in the number of outstanding shares of a company's stock, such that proportionate equity of each shareholder remains the same.
Stop Limit
This order gives instructions for a limit order to be entered when the Stop Order (see below) becomes effective.
Stop Order (STP)
This price is above the prevailing market price on a buy stop, or is below the prevailing market price on a sell stop. Buy stop orders are generally used to limit loss or protect unrealized profits on a short sale. A stop order becomes a market order when a stock trades at or through the stop price.
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 buyer (holder) upon exercise of the option contract.
STRIP
Separated Trading of Registered Interest and Principal of Securities. This bond, usually issued by the U.S. Treasury, whose two components, interest and principal, are separated and sold individually.
Subsequent Minimum Investment
The least amount of money that a person may use to purchase additional shares in a previously existing mutual fund account. Typically, minimum investment limitations do not apply to fund shares purchased pursuant to dividend reinvestment plans or other programs by which fund distributions are automatically invested in additional fund shares.
Surrender Charge
Also known as "contingent deferred sales charge." Charge for withdrawal prior to the expiration of the surrender charge period.
Surrender Value
The amount available in cash upon cancellation of an insurance policy, usually a whole life policy, before it becomes payable upon death or maturity.
Symbol (SYM)
A system of letters used to uniquely identify a security. For Fixed Income, see Security Number.
The market value-weighted index showing the change in the aggregate market value of 500 stocks relative to a base period, as calculated by the Standard & Poor's Corporation.
S&P 500 Funds
Funds that are passively managed, have limited expenses (advisor fee no higher than 0.50%), and are designed to replicate the performance of the Standard & Poor's 500 Index on a reinvested basis.
S&P Rating
A classification of bonds according to risk. S & P's top four grades, "AAA," "AA," "A," and "BBB," are called Investment Grade because they are low-risk investments. Standard & Poor's also evaluates insurance companies according to their ability to pay claims.
Sales Charge
Full-service firms commonly charge a sales commission or load when mutual fund shares are purchased or redeemed, because a financial professional helps you analyze your financial needs and objectives and identify appropriate investments that may meet those needs and objectives. The sales charge is waived for mutual funds purchased through an employer-sponsored retirement plan.
SAR (Stock Appreciation Rights)
For participants in employee stock option plans:
Rights that tie your benefit to the performance of your company, but do not provide the full rights associated with shareholder status. The gain from a SAR is based only on the increase in value per share between the date of the award and the date of surrender. A Stock Appreciation Right may be issued as freestanding, Additive/Attached or as a Tandem SAR.
An Additive or Attached SAR is granted in connection with your employee Stock Options in order to provide you with a source of cash to pay the taxes on your exercise.
A Tandem SAR provides you with a choice of exercising your employee stock option or the SAR, with the exercise of one eliminating the right to exercise the other.
Science & Technology Funds
Fund invests 65% of equity portfolio in science and technology stocks.
SEC 30 Day Yield
Income and dividends earned during the last 30 days on the securities held by in the fund. A fund's yield is expressed as a percentage of the Maximum Offering Price per share on a specified date.
SEC Exch Comm Fee
Securities Exchange Commission Fee. A fee assessed by the Securities and Exchange Commission on a per share basis on trades executed on U.S. exchanges and the NASDAQ market.
Secondary Distribution
The sale is usually not handled on an exchange, but instead is handled by an investment banker or a group of investment bankers. This is also known as a "secondary offering".
Secondary Market
A market that provides for the purchase or sale of previously sold or bought options through closing transactions.
Sector
A way to characterize securities based upon economic sectors. The categories are Financials, Consumer Staples, Consumer Discretionary, Information Technology, Industrials, Materials, Energy, Utilities, Health Care and Telecommunication Services.
Sector Equity Funds
Fund that invests 65% of its portfolio in a specific sector. For example: Health/Biotechnology, Natural Resources, Science and Technology, Utility, Real Estate, Gold or Financial Services.
Sector/Miscellaneous Funds
Fund that limits fund investments to a specific industry (e.g., transportation, retailing, or paper, etc.) or one that has not been classified into an existing investment objective.
Securities and Exchange Commission (SEC)
The government agency responsible for the supervision and regulation of the securities industry and markets, as well as public securities offerings and the ongoing disclosure obligations of public companies.
Securities Exchange Act of 1934
Federal legislation designed to protect the public against inequitable practices on stock exchanges and in over-the-counter markets throughout the United States. It requires periodic full and fair disclosure by public companies. The "Exchange Act" also created the SEC.
Securities Regulatory Organizations
Organizations such as the New York Stock Exchange, NASD Regulation Inc., etc. that are responsible for overseeing the securities markets, for registering and regulating brokerage firms, for overseeing the securities self-regulatory organizations (such as the nation's stock exchanges), and for overseeing other market participants, such as transfer agents and clearing organizations. The organization also sets financial responsibility standards, and regulates trading and sales practices, policies affecting operation of the securities markets and surveillance.
Security
An investment instrument issued by a corporation, government, or other organization that offers evidence of debt or equity.
Security Description
A detailed description of stocks, bonds, funds, and other investment instruments providing various key information.
Related to Annuity/Insurance:
The name of the insurance product.
Security Position
The number of shares held long or short in the account.
Security Value
The estimated market value (price times number of shares) of all priced securities as of the stated Close of Business date.
Sell
An order to sell a security. This is the order or instruction to sell, not the actual sale transaction.
Sell Covered Call
Selling a call option contract to open when the account holds the underlying security.
Sell Fund Symbol
The fund symbol that you are selling when entering a mutual fund exchange
Note: Only mutual funds of the same family and class of shares may be exchanged.
Sell Short
Borrowing a security from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. SEC rules allow investors to sell short only on an uptick or a zero-plus tick.
Sell to Close
Selling an option contract to close out a pre-existing long position.
Serial Bonds
A group of bonds from the same issuer with various maturity dates (an issuer ladder).
Series
All option contracts of the same class that also have the same unit of trade, expiration date and strike price.
Service
Indicates the type of service associated with the account.
Settlement Date
The date by which an executed transaction must be settled.
Share
A single stock unit that represents a portion of company ownership.
Share Balance
The total number of shares available to you through your employee stock option plan recordkeeping account.
Shareholder/Stockholder
An individual who owns stocks in a company and who is entitled to voting privileges and dividends.
Shares Granted
The number of restricted shares awarded to you by your company.
Shares Outstanding
Common Shares outstanding (primary).
Shares Restricted
The number of unvested restricted shares in your recordkeeping account.
Shares to Exercise
The number of restricted shares you wish to model.
Shares Unrestricted
The number of shares for which restriction the has lapsed.
Shares Vested
The number of restricted shares that are available to you in accordance with your Plan's vesting.
Short Investment Grade Debt Funds
Fund invests at least 65% of assets in investment grade debt issues (rated in top four grades) with dollar-weighted average maturities of less than three years.
Short Market Value
The combined total short positions in your account multiplied by the current market prices.
Short Municipal Debt Funds
Fund invests in municipal debt issues with dollar-weighted average maturities of less than three years.
Short Position
A position wherein a person's interest in a particular series of options is as a net seller (writer) (i.e., the number of contracts sold exceeds the number of contracts bought). Also, an investor is in a short position when the investor sells a stock that he or she does not own. The investor is looking for the stock to drop in price so that he or she can buy it lower than what it was sold for and make a profit on the difference.
Short U.S. Government Funds
Fund invests at least 65% of assets in securities issued or guaranteed by the U.S. government, its agencies, or its instrumentalities, with dollar-weighted average maturities of less than three years.
Short U.S. Treasury Funds
Fund invests at least 65% of fund assets in U.S. Treasury bills, notes, and bonds with dollar-weighted average maturities of less than three years.
Short/Long
Security holding periods are measured from trade date to trade date. A security held one year or less is considered Short Term. Securities held for more than one year are considered Long Term. A security is considered a 5-year holding if it is held greater than 5 years. Different capital gains tax rates generally apply to each of the three holding periods.
Sinking Fund
The gradual retirement of the original issue at specified dates (usually coupon dates).
Small-Cap Core Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Core funds have wide latitude in the companies in which they invest. These funds will normally have an average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Small-Cap Growth Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Growth funds normally invest in companies with long-term earnings expected to grow significantly faster than the earnings of the stocks represented in a major unmanaged stock index. These funds will normally have an above-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Small-Cap Value Funds
Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 250% of the dollar-weighted median market capitalization of the S&P Small-Cap 600 Index. Small-Cap Value funds seek long-term growth of capital by investing in companies that are considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. These funds will normally have a below-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified small-cap funds universe average.
Special Memorandum Account
SMA is a line of credit. According to Regulation T, SMA is used to record the excess margin in your account.
Special Memorandum Account Change
Changes to the SMA caused by trades or movement of securities and funds.
Split Date
The date that the split ratio takes effect for a corporation's outstanding shares of stock when a stock split occurs.
Split Ratio
The ratio by which a corporation's number of outstanding shares of stock is adjusted on the split date when a stock split occurs. In a split, the share price becomes a fraction of the pre-split prices.
For example: If a stock par value splits 2-for-1, the number of authorized shares doubles and the price per share drops by half.
Spread
For participants in employee stock option plans:
The difference between the grant price and the current market price.
SSN/TIN
The social security number or tax identification number of the primary client on the account.
Standard & Poor's 500 Index (S&P 500)
This index, also known by its options ticker symbol SPX, measures the overall change in the value of the 500 stocks of the largest firms in the U.S. (The breakdown between industrial, transportation, utilities and financial firms fluctuates depending on the market.)
Standard Deviation
Measures the volatility of a fund's historical returns. When a fund has a high standard deviation, its range of performance has been very wide, indicating greater potential for volatility. A more volatile fund will have a greater difference between its highest historical return and its lowest historical return. More volatile funds may be riskier investments.
State Tax
Securities can be either exempt from or subject to state and local taxes.
Exempt-Interest from the security is free from state and local taxes
Subject-Interest from the security is not free from state and local tax.
State Tax Withholding
Amount of State tax withholding requested.
Statement Date
The statement close of business date.
STEERS
See STructured EnhancEd Return TrustS
Stock
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits.
Stock Dividend
A dividend paid as additional shares of stock rather than as cash.
Stock Holder
Individual or organization with an ownership position in a corporation, and who is entitled to voting privileges and dividends.
Stock Option
For employee stock option plans:
The right to purchase shares of stock at a fixed price over a specified period of time.
Stock Option Grant
For participants in employee stock option plans:
The right to purchase a specific number of shares at a fixed price within a certain period of time subject to the terms of the plan under which the grants are awarded.
Stock Options(Listed)
The right to purchase or sell shares of stock at a fixed price over a specified period of time. Not applicable to employee stock option plan participants.
Stock Power
A power of attorney enabling a person other than the owner to transfer stock ownership to another party. Stock power is sometimes granted when stock is pledged as collateral for a loan.
Stock Split
An increase in the number of outstanding shares of a company's stock, such that proportionate equity of each shareholder remains the same.
Stop Limit
This order gives instructions for a limit order to be entered when the Stop Order (see below) becomes effective.
Stop Order (STP)
This price is above the prevailing market price on a buy stop, or is below the prevailing market price on a sell stop. Buy stop orders are generally used to limit loss or protect unrealized profits on a short sale. A stop order becomes a market order when a stock trades at or through the stop price.
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 buyer (holder) upon exercise of the option contract.
STRIP
Separated Trading of Registered Interest and Principal of Securities. This bond, usually issued by the U.S. Treasury, whose two components, interest and principal, are separated and sold individually.
Subsequent Minimum Investment
The least amount of money that a person may use to purchase additional shares in a previously existing mutual fund account. Typically, minimum investment limitations do not apply to fund shares purchased pursuant to dividend reinvestment plans or other programs by which fund distributions are automatically invested in additional fund shares.
Surrender Charge
Also known as "contingent deferred sales charge." Charge for withdrawal prior to the expiration of the surrender charge period.
Surrender Value
The amount available in cash upon cancellation of an insurance policy, usually a whole life policy, before it becomes payable upon death or maturity.
Symbol (SYM)
A system of letters used to uniquely identify a security. For Fixed Income, see Security Number.