Glossary | S
|A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z | 0-9|
Sales Charge: Fee paid for the purchase of shares in a load mutual fund. Also known as Load.
Savings and Loan: Depository financial institution, federally or state chartered, that obtains most of its deposits from consumers and holds the majority of its assets as home mortgage loans.
SEC: Securities And Exchange Commission. Federal agency organized to regulate the securities industry and for the protection of the investors through the administration of the various federal securities laws.
SEC 7-Day Yield: When presented in sales literature and disclosed in a money market fund's prospectus or statement of additional information, the 7-day yield must be calculated pursuant to a formula prescribed by the SEC. See also 7-Day Yield (simple yield).
SEC 30-Day Yield: The average interest rate on the bonds in a fund over a 30-day period, adjusted to reflect the current market value of the bonds, which may raise or lower the 30-day yield. It is then annualized. When presented in sales literature and disclosed in a fund's prospectus or statement of additional information, the 30-day yield must be calculated pursuant to a formula prescribed by the SEC. See also 30-Day Yield (simple yield).
Secondary Market: Where buyers and sellers get together in person, by telephone, or by computer terminal to trade stocks, bonds, commodities, options, futures contracts and other securities; i.e., a "stock exchange." Exchanges provide liquidity, the ability to buy and sell shares quickly and inexpensively at fair market value.
Sector Fund: Specialized mutual fund that invests in the stocks of companies in one industry.
Secured Obligation: Debt whose payment of interest and/or principal is secured by the pledge of assets or other collateral.
Securities: General term that includes all instruments representing evidence of ownership or debt, issued by a company or a corporation. Securities usually refer to stock and bond and money markets, too.
Securities Act of 1933: First law enacted by Congress to regulate the securities market; provides principally for securities registration requirements and prevention of fraudulent conduct.
Securities Exchange Act of 1934: Law predominately governing the securities activities on the national securities exchanges.
Serial Bond: Bond issue with various maturity dates to be paid in parts at periodic stated intervals until the entire issue is retired.
Settlement: Completion of a securities transaction in which a customer either pays a broker for securities bought, or receives from the broker the proceeds from a sale.
Settlement Date: Date by which a trade must be paid, based on instructions received by the transfer agent.
Share: Unit of equity in a corporation or a unit of ownership in a mutual fund.
Short Sale: Position in which an investor sells borrowed stock and expects a decline in price so that he or she may purchase the shares at the depressed price for a gain, or if the price rises, at a loss.
Signature Guarantee: Rubber stamp (or typed - not handwritten) placed next to an individual's name indicating validity of the endorsement. The grantor accepts financial liability.
SIPC: Securities Investor Protection Corporation. Nonprofit organization that provides funds to broker-dealer member firms to protect client assets on deposit in the event that broker-dealer fails and is liquidated.
Special Meeting: Meeting of shareholders to take action on specific proposals submitted by management and the Board of Directors for consideration and approval.
Special Offer: Manager's undertaking to reduce a fund's operating expenses for a period of time.
Speculation: Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss.
Speculative Stocks: Speculative stocks lack proven records of success; their earnings are uncertain and highly unstable. They are subject to high price swings and usually pay little or no dividends. These stocks are highly risky with the prospect for higher returns.
Spread: Difference between the buying and selling price.
State-Specific Municipal Bond Funds: Will purchase municipal obligations of a specific state to provide investors monthly income that is exempt from federal, state, and any local taxes and are designed exclusively for the investor residing in the issuing state.
Stock: Equity ownership of a corporation represented by shares that are a claim on the corporation's earnings and assets.
Stock Dividend: Payment of a corporate dividend in form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. The dividend is usually expressed as a percentage of the shares held by a shareholder.
Stock Split: Marketing strategy where the number of shares is doubled and the price per share is decreased by 50%. For example, 100 shares are increased to 200 shares but the price per share drops from $100 to $50.
Stockholder of Record: Person whose name is recorded in the register of the issuing corporation.
Street Name: Securities held for a client in the name of a broker, usually when the securities were bought on margin or when the client is an active trader.
Suitability: Requirement that representatives need to understand clients' personal and financial backgrounds before helping clients select suitable mutual funds.
Surety Bond: Insurance bond from a company allowing financial reimbursement in the case of a lost or stolen security. Also known as Indemnity Bond.
Syndicate: Group of investment bankers who together underwrite and distribute a new issue of securities or a large block of an outstanding issue.