xebec Registered User

Scrip dividend - An issue that involves shareholders electing to receive additional shares, instead of cash, in respect of all or part of their entitlement to what otherwise would be the cash dividend
Secondary Market - A market for securities following their initial distribution; may be order driven (automatic matching of offers with bids) or comprise market makers (the dealers who quote simultaneous bid and offer prices for securities).
Securities (Stock) Lending - Transfer of securities to a borrower (usually so the borrower can pay back a short-term liability), in return for a fee. See also Repo.
Securitization - The conversion of bank loans, receivables or other non-tradable financial transactions into tradable securities (usually bonds).
Security - A generic term for all tradable financial assets.
Senior Financial Debt - Senior debt ranks ahead of all other unsecured or subordinated debt in right of payment, in the event of a default.
Shareholder - A person (or institution) that holds shares in a company, participates in voting and qualifies for a dividend.
Shark Repellant - Moves to discourage an unwanted takeover.
Short Position - A short position is one which profits when the value of the underlying asset goes down.
Size - The number of shares or contracts in a transaction that the trade is for.
Spot - The market or price for immediate, as opposed to future, delivery of assets; used in foreign exchange and money markets to signify delivery in two business days' time for deals agreed today.
Standard & Poor's - Standard & Poor's Corporation (S&P) - A US credit rating agency, which applies globally-recognized ratings to bonds and the institutions and companies that issue them.
Star - A successfully performing investment.
Star Trek - (US) A new issue where the pricing is in 'undiscovered country'. That is, the price or yield breaks new ground in relation to some benchmark, spread or maturity.
Stockbroker - An agent who buys and sells securities on a stock exchange on behalf of clients.
Stock Exchange - A physical location where trading in listed securities is regularly carried out by qualified members.
Structured Product - A financial instrument designed to meet specific investor needs by incorporating special, non-standard features.
Subordinated Debt - Debt that ranks lower than senior and other classes of unsecured debt for repayment in the event of the issuer defaulting.
Swap - An exchange between two counterparties of instruments, carried out to balance risk or to match the earnings or maturity characteristics of each instrument to the respective parties' needs.
Swaption - The option to enter into a swap.
Syndication - The distribution among institutions of bank loans and securities, in order to share risk and future returns.

xebec Registered User

T-Bill/Treasury Bill - A non-interest-bearing discount security, issued by governments (especially the US) to finance national debt. The return to the investor at maturity is the difference between the price paid and the face value at maturity.
Technical Analysis - Market prediction based on analysis of price data.
Transparency - The extent to which prices and volumes in a securities market are visible to all participants.
Treasury - Used to describe sovereign government financial activities; also the finance department of a company.

Underwriter - In investment banking, a member of a new issue syndicate who contracts to purchase primary debt or equity securities on a given date at a specific price, thus guaranteeing the borrower the full proceeds.

Vanilla - A derivative with no exceptional features i.e. like plain vanilla ice cream.

Warrant - An option issued by a company or financial institution, often on their own stock.
Wholesale - Banks and markets which cater for large-volume transactions for corporates, institutions etc; distinct from retail banking for personal clients.
White Knight - A third-party bidder who the target company favors over the hostile bidder.

xebec Registered User

Yard - One billion of a specified currency.
Yellow Jackets - Originally the 'runners' or assistants on the LIFFE floor who would be distinguishable by their yellow jackets; still used today to describe new joiners or interns on the trading floor.
Yield - Return on a loan or investment, stated as a percentage of the price.
Yield Curve - The relationship between short-term and long-term rates, expressed as a graph; if long-term rates are above short-term, the curve is upward or positive; if vice versa, the curve is negative or inverted.


Just I few I could think of:

Chinese Wall-An information barrier designed to prevent communication between those involved in making investment decisions and those who may have access to insider or undisclosed information.
Pump & Dump-financial fraud that typically involves artificially inflating the price of a stock or other security through untrue or exaggerated promotion (creating artificial demand), in order to sell stock, previously purchased cheaply, at the inflated price. When the promotion stops or flaws in the promotion are exposed, the artificial demand is removed, causing a collapse in the price of the investment, leaving many investors out of pocket.
Futures Contract-A futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price.
CFT(Contract For Difference)-A CFD is an agreement between two parties to settle, at the close of the contract, the difference between the opening and closing prices of the contract, multiplied by the number of underlying shares specified in the contract.
Long Position-A long position is one which profits when the value of the underlying asset goes up.
Short Position-A short position is one which profits when the value of the underlying asset goes down.
Junk bond-A bond which usually pays significantly aove the odds but carries huge risk of default.

Great list by the way

xebec Registered User

Cheers guys, sean_keevey could you add definitions for those aswell? Can't believe they're not in the list

Now time to start studying again


Definitions added, you can edit/rewrite if you want and stick them in the alphaetical list.

xebec Registered User

Cheers, have added them now. The only one I changed was junk bond, the others seemed fine but will have a look at them again sometime.

Goodluck2me Registered User

Hybrid swaps

This is a very useful website for this - Derivatives glossary

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