Glossary

Zero Coupon Bond	Bonds that do not make interest (coupon) payments prior to maturity.
Zero-Coupon Convertible Security	A zero-coupon bond convertible into the common stock of the issuing company after the stock reaches a certain price, using a put option inherent in the security. Also refers to zero-coupon bonds, which are convertible into an interest bearing bond at a certain time before maturity.

Year-End Dividend	A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits.
Yield	A measure of the amount of money returned to an investor on his investments.
Yield to Maturity	The rate of return an investor receives if a fixed-income security (bond) is held to maturity.

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Warrant	A corporate-issued certificate giving the holder the right to buy securities at a stipulated price within a given time period.
Will	A written and signed statement, made by an individual, which provides for the disposition of their property when they die.
Wire Transfer	Electronic transfer of funds; usually involves large payments.
Withholding	Used in the context of securities, the illegal practice of a public offering participant keeping some shares in a private account or with a family member, employee, or dealer to profit from the higher market price of a hot issue.
With Rights	Shares sold accompanied by entitlement the buyer to buy additional shares in the company's rights issue.
Working Capital	The difference between current assets and current liabilities. There are some variations in how working capital is calculated. Variations include the treatment of short-term debt. In addition, current assets may or may not include cash and cash equivalents, depending on the company.

Vault Cash	Cash kept on hand in a depository institution's vault to meet day-to-day business needs.
Vertical Acquisition	Buying or taking over a firm in the same industry in which the acquired firm and the acquiring firm represent different steps in the production process.
Vertical Merger	When one firm acquires another firm that is in the same industry but at another stage in the production cycle.
Volatility	A measurement of the change in price over a given period.
Volume	The number of purchases or sales of securities contracts made during a specific time period, often the total transactions for one trading day or week.
Voting Rights	The right to vote on matters that are put to a vote of security holders.
Voting Stock	The shares in a corporation that entitle the shareholder to vote.

Underpricing	Issuing securities at less than their market value.
Underwriter	An investment bank that agrees to purchase a new issue of securities from an issuer and distribute it to investors, making a profit on the fees charged for this service.
Underwriting Agreement	The contract between a corporation issuing new publicly offered securities and the managing underwriter as agent for the underwriting group. Compare to agreement among underwriters.
Unlisted Security	A security not listed on an exchange.

Term	The period of time during which a contract is in force.
Ticker Symbol	An abbreviation assigned to a security for trading purposes.
Ticker Tape	Computerized device that relays to investors around the world the stock symbol and the latest price and volume on securities as they are traded.
Time Limit Order	A customer order that designates the time during which it can be executed.
Time Order	Order that becomes a market or limited price order or is canceled at a specific time.
Time to Maturity	The time remaining until a financial contract expires. Also called time until expiration.
Tip	Information given by one trader to another, which is used in making buy or sell decisions but is not available to the general public.
Total Capitalization	The total long-term debt and all types of equity of a company that constitutes its capital structure.
Total Market Capitalization	The total market value of all of a firm's outstanding securities.
Trade	To carry out a transaction of buying or selling stock or a bond.
Trade Balance	The difference between a nation's imports and exports of merchandise .
Trader	An individual who buys and sells securities for his own account for personal gain or an individual who buys and sells securities on behalf of a broker or financial institution for the firm and its clients.
Trade Settlement	Delivering securities in return for cash.
Trading Volume	The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares.
Transaction	Execution of an order to buy or sell securities.
Transaction Fee	A charge an intermediary, such as a broker-dealer or a bank, assesses for assisting in the sale or purchase of a security.
Transfer Agent	The primary recordkeeper for all shareholder information regarding a company's stock.
Transferee	A person who receives ownership being transferred.
Transferor	A person from whom ownership moves.
Treasury Bills (T Bills)	A government security with maturity of one year or less.
Treasury Bond	Long-term obligations of the Central Bank with a minimum maturity of 10 years.
Treasury Note	A government security with maturity between 1 and 10 years.
Trustee	A bank designated by an issuer of stocks or bonds that acts as the custodian of funds and official representative of the stock or bondholders. Trustees are appointed to assure that stockholders and bondholders have representation to enforce the contractual obligations of the issuer.

Safekeeping	The holding of a physical or book entry security by a depository or custodian.
Secondary Market	Market where previously issued securities are bought and sold.
Second Market	Part of the Secondary Market through which trading takes place in securities subject to special ASE listing rules.
Sector	A group of securities similar with respect to industry, maturity, type, rating, and/or coupon.
Sector Allocation	Investment of certain proportions of a portfolio in certain sectors.
Sector Diversification	Constituting of a portfolio of stocks of companies in each major industry group.
Securities and Commodities Exchanges	Exchanges on which securities, options, and futures contracts are traded by members for their own accounts and for the accounts of customers.
Securities Borrow	A collateralized security loan for a fee.
Securities Depository Center (SDC)	Institution established in Jordan for the purposes of the registration of securities, the transfer of ownership of securities, and the settlement of their value. It operates as the central registry in the Kingdom.
Securities Lending	The loan of securities between brokers, often to cover a client's short sale; or a loan secured by marketable securities.
Securities Markets	Organized exchanges plus over-the-counter markets in which securities are traded.
Security	Instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or rights to ownership (e.g., option).
Seller's Market	Market in which demand exceeds supply. As a result, the seller can dictate the price and the terms of sale.
Selling Climax	A sudden drop in security prices as sellers dump their holdings.
Selling Short	selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for 8 dinars per share. Then, on Aug. 1, you purchase 1000 shares of XYZ at 7 dinars per share. You've made 1000 dinars (less commissions and other fees) by selling short.
Sell Order	An order to sell securities.
Sell Out	An action by the broker when a customer fails to pay for securities purchased and securities received from the selling broker are sold to cover the transaction.
Settlement	The conclusion of a securities transaction when a customer pays a broker or dealer for securities purchased or delivers securities sold and receives payment from the broker.
Settlement Contract	The contract of settling the obligations of each the Broker and the Custodian related to a Trading Contract executed by the Broker to a custody client.
Settlement Date	The date on which both parties of a transaction agree to deliver securities or pay cash.
Shareholder	Person or entity that owns shares or equity in a corporation.
Shareholders' Equity	See Stockholders' Equity.
Shares	Certificates or book entries representing ownership in a company.
Share Repurchase	The process in which a corporation buys back previously issued shares of its own stock in the open market.
Short Sale	Any investments with a maturity of one year or less. Here is how it work: You borrow the shares from your broker, sell them in the market and receive the money from the sale. This is obviously done when you hope that the price of the stock will drop so that you can buy it at a later date for less and repay your loan. Buying the shares back is called covering that short position. A short selling transaction can be costly, since you pay your broker interest on the stock borrowed, and risky if the price of the security moves up sharply.
Short-Term	A short selling transaction involves selling a stock without owning it first.
Sinking Fund	Money that is accumulated in a separate custodial account for the purpose of redeeming debt securities or preferred stock issues.
Small Investor	An individual person investing in small quantities of stock or bonds. This group of investors makes up a minimal fraction of total stock ownership.
Split	When a company finds that its high stock price is discouraging new investors, it may initiate a stock split to lower the price and increase trading. Stocks can split 3 for1, 3 for 2, 10 for 1 or any other combination.
Spot	Usually refers to a cash market price for a physical commodity that is available for immediate delivery.
Spread	The price difference between two related markets or commodities.
Statement of Cash Flows	A financial statement showing a firm's cash receipts and cash payments during a specified period.
Stock	Equity ownership of a corporation through the purchase of shares.
Stock Dividend	Payment of a corporate dividend in stock rather than in cash.
Stock Exchanges	Worldwide, stocks are either traded on organized exchanges or Over-the-Counter (when trading is not centralized in a single place and in full view of all market participants). Every industrialized country possesses its own Stock Exchange, with the major markets having several exchanges. Exchanges vary by listing requirements (to begin trading) and maintenance standards (to continue trading), as well as by their rules and regulations governing trading execution, reporting and settlement. Stock markets also vary according to market structure and trading mechanisms. A company will choose a stock market on which to list by determining which one will effectively enhance the attractiveness of its stock to investors.
Stockholders' Equity	The value of all stock of a particular company owned by the shareholders of that company. Calculated by subtracting a company's total liabilities from its total assets or a corporation's paid-in capital, donated capital, and retained earnings less its liabilities (also called, Shareholders' Equity, Net Worth, and Owners' Equity).
Stock Index	An indicator used to measure and report changes in prices of a selected group of stocks. How a particular stock index tracks the market depends on its composition - the sampling of stocks, the weighing of individual stocks, and the method of averaging used to establish an index.
Stop Order	An order to sell if and when the market price falls to a specified amount.
Street Name	Indicates that a stock certificate is in the name of a brokerage house.
Strike Price	The stated price per share for which a stock option may be purchased or sold by the option holder.
Sub-Custodian	An agent bank or subsidiary that provides local custody services for a global custodian.
Subscription Right (privilege)	The right of current shareholders of a corporation to buy newly issued shares before they are available to the public.
Suspended Trading	Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell.
Swap	An arrangement when two companies lend to one another on different terms, for example at different interest rates or in different currencies.
SWIFT (Society for Worldwide Interbank Financial Telecommunication)	Communication network providing secure lines of trades and/or cash communication to financial institutions globally. Customers include banks, broker-dealers, securities depositories and clearing organizations, investment managers and stock exchanges.

Range	The price span of a stock, index, or exchange during a given trading session, week, month, year, or other time period.
Recession	A temporary downturn in economic activity, usually indicated by two consecutive quarters of a falling GDP.
Record Date	Date by which a shareholder must officially own shares in order to be entitled to a dividend.
Redemption	The paying off or buying back of a bond by the issuer.
Refunding Bond	The replacement of a bond issue with a new bond issue.
Registered Bond	A bond that is recorded in the name of the holder of the books of the issuer or the issuer's registrar and can be transferred to another owner only when endorsed by the registered owner.
Registered Security	Used in the context of general equities. Securities whose owner's name is recorded on the books of the issuer or the issuer's agent, called a registrar.
Registered Shares	Shares that are issued in a shareholder's name as the holder of record.
Registrar	An organization with the responsibility of keeping a record of the owners of securities.
Regulations	Rules specifying the appropriate behavior of agencies, organizations or individuals in the securities industry.
Reinvestment	Use of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors.
Rejected Order	An order that is invalid or unacceptable.
Repurchase Agreements (Repo)	An agreement between a seller and a buyer, in which the seller agrees to buy back the security at a later date.
Required Rate of Return (RRR)	The minimum expected yield by investors require in order to select a particular investment.
Reserve Requirements	The minimum amount of cash and liquid assets as a percentage of demand deposits and time deposits that member banks of the Central Bank are required to maintain.
Retail Investor	An individual who buys and sells securities on his own behalf, not for an organization.
Return on Assets (ROA)	A percentage calculated by dividing a company's net income from the previous year by its common stockholder equity. Indicator of profitability.
Return on Capital Employed (ROCE)	Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). The idea is that this ratio should at least be greater than the cost of borrowing.
Return on Equity (ROE)	Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of how a company is using its money.
Return on Investment (ROI)	Generally, book income as a proportion of net book value.
Reuters	International news and quotation service based in London.
Rights Offering	Issuance to shareholders that allows them to purchase additional shares, usually at a discount to market price. Holdings of shareholders who do not exercise rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them .
Risk	Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory.
Risk Indexes	Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) financial risk.
Riskless Transaction	A transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets.
Risk Management	The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures.

Qualifying Share	Shares of common stock that a person must hold in order to qualify as a director of the issuing corporation.
Quick Ratio	Indicator of a company's financial strength (or weakness). Calculated by taking current assets less inventories, divided by current liabilities. This ratio provides information regarding the firm's liquidity and ability to meet its obligations. Also called the Acid test ratio.
Quorum	The minimum number of people who must be present or must provide a proxy to vote at a meeting in order to make a valid decision. Without "quorum", decisions are invalid. Many organizations have a quorum requirement to prevent decisions being taken without a majority of members present.
Quotation	Highest bid and lowest offer (asked) price currently available on a security or a commodity.
Quoted Price	The price at which the last trade of a particular security or commodity took place.