The Global Voice in a Global Conversation

GLOSSARY

Search for glossary terms (regular expression allowed)
Begin with Contains Exact termSounds like
Term Definition
Futures

A futures contract is an agreement or obligation to buy or sell a given quantity of a particular security, at a specified future date at a pre-determined price.

Author: London Stock Exchange
Hits: 371
Hedge

A strategy used to limit investment loss by making a transaction that offsets an existing position.

Author: TMX Group
Hits: 358
In-the-money

Call (put) option or warrant with an exercise price below (above) the current market price of the underlying asset. See also At-the-money and Out-of-the-money.

Author: Australian Securities Exchange
Hits: 461
Index
Statistical measure designed to show the change of one or more related variables in time. Stock indices measure the performance of a selection of stocks representing a portion of the overall market. The components can be weighted acording various criteria (e.g. Market Capitalisation, Free-Float Market Capitalisation, price-weighted...) and the indices can be calculated as price indices or on a "total return basis" to include the reinvestment of dividends paid. Stock Indices are often used as benchmarks for actively and passively managed investment funds and as underlyings for derivative products.
Author: WFE
Hits: 390
Initial Public Offering (IPO)

The first time a company makes its shares available for sale to the public.

Author: NYSE & Euronext
Hits: 491
Interest Rate

The price paid by a borrower for the use of money he has borrowed from a lender. The lender can be a public or private financial or non-financial company or a public administration. Interest rates are the most frequently used underlyings for derivatives.

Author: WFE
Hits: 468
Intrinsic value

The price paid by a borrower for the use of money he has borrowed from a lender. The lender can be a public or private financial or non-financial company or a public administration. Interest rates are the most frequently used underlyings for derivatives.

Author: Australian Securities Exchange
Hits: 477
ISIN

International Securities Identification Number (ISIN). International code for a listed security.

Author: London Stock Exchange
Hits: 385
Issuer

An issuer is an organization which issued securities listed on an exchange. In WFE statistics issuers are broken down into domestic private, public, and foreign entities.

Author: WFE
Hits: 338
Limit Order

An order that specifies the limit price at which the trade can be executed.

Author: Amman Stock Exchange
Hits: 474
Liquidity

This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding for large transactions to occur without a substantial change in price. Liquidity is one of the most important characteristics of a good market. Liquidity also refers to how easily investors can convert their securities into cash.

Author: TMX Group
Hits: 359
Listing Rules

Rules governing the admission and ongoing requirements of all entities listed on a specific exchange.

Author: WFE
Hits: 486
Long

Trader who has bought or who holds a position that will benefit from rising prices. See also Short.

Author: Australian Securities Exchange
Hits: 351
Margin Call

Communication to a client asking to cover an adverse price movement on a derivative product.

Author: Australian Securities Exchange
Hits: 472
Market Capitalization

The market capitalization of a stock exchange is the total number of issued shares of domestic companies, including their several classes, multiplied by their respective prices at a given time. This figure reflects the comprehensive value of the market at that time.The market capitalization figures include: - shares of domestic companies ; - shares of foreign companies which are exclusively listed on an exchange, i.e. the foreign company is not quoted on any other exchange ; - common and preferred shares of domestic companies ; - shares without voting rights.The market capitalization figures exclude: - collective investment funds ; - rights, warrants, ETFs, convertible instruments ; - options, futures ; - foreign listed shares other than exclusively listed ones ; - companies whose only business goal is to hold shares of other listed companies; - companies admitted to trading (companies admitted to trading are companies whose shares are traded at the exchange but not listed at the exchange).

Author: WFE
Hits: 867