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Speak the language of the stock market - consult our Glossary for the definitions of stock market terms and vocabulary that may help you better understand the capital markets. NOTE: Some of the definitions are GREENSX -specific and, as a result, may differ from standard general definitions.
Aa
Agent
A securities firm is classified as an agent when it acts on behalf of its clients as buyer or seller of a security. The agent does not own the security at any time during the transaction.
All-or-None Order
An order that must be filled completely or the trade will not take place.
American-Style Options
Options that can be exercised any time during their lifetime. These are also known as open options.
Annual Report
A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company's fiscal year-end.
Anonymous Trading
Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on GREENSX trading systems.
Arbitrage
The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit.
Ask or Offer
The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote.
Assets
Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company's balance sheet or an individual's net worth statement.
Assignment
The notification to the seller of an option by the clearing corporation that the buyer of the option is enforcing the terms of the option's contract.
At-the-Money
When the price of the underlying equity, index or commodity equals the strike price of the option.
Averages and Indices
Statistical tools that measure the state of the stock market or the economy, based on the performance of stocks, bonds or other components. Examples are the GREENSX Composite Index, the Dow Jones Industrial Average and the Consumer Price Index.
Averaging Down
Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.
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Bb
Basis Point
One-hundredth of a percentage point. For example, the difference between 5.25% and 5.50% is 25 basis points.
Bear Market
A market in which stock prices are falling.
Best-Efforts Underwriting
A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to be issued will be sold.
Beta
A measurement of the relationship between the price of a stock and the movement of the whole market.
Better-Price-Limit Orders
An order with a limit price better than the best price on the opposite side of the market. A better-priced buy order has a limit price higher than the best offering. A better-priced sell order has a limit price lower than the best bid. These are available only at the opening.
Bid
The highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote.
Black-Scholes Model
A mathematical model used to calculate the theoretical price of an option.
Block Trades
Trades greater than or equal to 10,000 shares in size and greater than or equal to $100,000 in value.
Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.
Board Lot
A standard trading unit as defined in UMIR (Universal Market Integrity Rules). The board lot size of a security on Green Stock Exchange (GREENSX) depends on the trading price of the security, as follows:
- Trading price per unit is less than $0.10 - board lot size is 1,000 units
- Trading price per unit is $0.10 to $0.99 - board lot size is 500 units
- Trading price per unit is $1.00 or more - board lot size is 100 units
Bonds
Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time.
Book
An electronic record of all pending buy and sell orders for a particular stock.
Booked Orders
Orders that do not trade immediately upon entry. These orders are also known as outstanding orders.
Bought-Deal Underwriting
A type of underwriting where the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss.
Broker or Brokerage Firm
A securities firm or a registered investment advisor affiliated with a firm. When acting as a broker for the purchase or sale of listed stock, the investment advisor does not own the securities but acts as an agent for the buyer and seller and charges a commission for these services.
Bull Market
A market in which stock prices are rising.
Business Day
Any day from Monday to Friday, excluding statutory holidays.
Business Trust
A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.
Buy-In
If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities at the current market price of the stock and charge the delivering broker the cost difference of such a purchase.
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Cc
Call Option
An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.
Capital
To an economist, capital means machinery, factories and inventory required to produce other products. To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets.
Capital Gain or Loss
Profit or loss resulting from the sale of certain assets classified under the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property.
Capital Gains Distribution
A taxable distribution out of taxable gains realized by the issuer. It is generally paid to security holders of trusts, partnerships, and funds. Like all distributions, it may be paid in securities or cash. The amount, payable date, and record date are established by the issuer. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement.
Capital Stock
All shares representing ownership of a company, including preferred and common shares.
Capital Trust
A form of financial trust that differs from other trusts in that it looks more like a fixed income instrument than an equity issue. Capital trusts are generally issued by banks or other financial intermediaries. These investment vehicles trade like a debt instrument with $1,000 face value and trade with accrued interest.
The business objective of capital trusts is to acquire and hold assets that will generate net income for distribution to unit holders. The trust's assets may consist of residential mortgages, mortgage co-ownership interests, mortgage-backed securities, other eligible investments, and other qualified debt obligations. Capital trust assets are usually acquired from and serviced by the issuing institution and/or its affiliates.
Capitalization Change
Any change in the issued and outstanding listed securities of an issuer. This change may involve the issuance, repurchase, or cancellation of listed securities or listed securities that are issuable upon conversion or exchange of other securities of an issuer.
Capitalization Effective Date
The date that the capitalization change is reflected in the issuer's share register, regardless of when it is reported to the Exchange.
Capitalization or Capital Structure
Total dollar amount of all money invested in a company, such as debt, preferred and common stock, contributed surplus and retained earnings of a company.
Cash
A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash.
Cash Dividend / Distribution
A dividend/distribution that is paid in cash.
Cash Settlement
Settlement of an option contract not by delivery of the underlying shares, but by a cash payment of the difference between the strike or exercise price and the underlying settlement price.
Certificate
The physical document that shows ownership of a bond, stock or other security.
Changes in Stock List
Any modification to the list of tradable issues of an exchange. These modifications include: new listings, supplemental security listings, substitutional listings, deletions, name changes, and stock symbol changes.
Clearing Day
Any business day on which the clearing corporation is open to effect trade clearing and settlement.
Clearing Number
The trading number of the clearing Participating Organization or Member.
Client Order
An order from a retail customer of a Participating Organization.
Closed-End Investment Fund
An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Assets of a closed-end fund are professionally managed in accordance with the fund's investment objective and policies and may be invested in a wide range of financial instruments/assets. Like other publicly traded securities, the market price of closed-end fund securities fluctuates and is determined by supply and demand in the marketplace.
Closing Transaction
An order to close out an existing open futures or options contract.
Commission
The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
Commodities
Products used for commerce that are traded on a separate, authorized commodities exchange. Commodities include agricultural products and natural resources such as timber, oil, carbon trading and metals. Commodities are the basis for futures contracts traded on these exchanges.
Common Shares or Common Stock
Securities that represent part ownership in a company and generally carry voting privileges. Common shareholders may be paid dividends, but only after preferred shareholders are paid. Common shareholders are last in line after creditors, debt holders and preferred shareholders to claim any of a company's assets in the event of liquidation.
Complete Fill
When an order trades all of its specified volume.
Conditional Listing Application (CLA)
When a company applies to list on Green Stock Exchange (GREENSX) , a CLA consists of the Green Stock Exchange (GREENSX) listing agreement and the company's prospectus.
Consolidated Short Position Report
A consolidated report that includes the total shares short (as of the trade date) and the net change from the previous report, for Green Stock Exchange (GREENSX) listed issues. Under UMIR rule 10.10, all Green Stock Exchange (GREENSX) Participating Organizations and Members must report the firm's short position on a semi-monthly basis to Green Stock Exchange (GREENSX). Non-clearing firms may report through t | 