Actsm see Automated Confirmation Transaction Service
QDS See Quote Dissemination System
Download 416.84 Kb.
|
QQDS See Quote Dissemination System qualified institutional investor An institutional investor permitted under Securities and Exchange Commission rules to trade privately-placed securities with other qualified institutional investors without registering the securities with the SEC. A qualified institutional investor must have at least $100 million under management. quarterly report (Form 10 Q) A report, required by the SEC of publicly-held companies, filed quarterly, that provides unaudited financial information and other selected material. quotation size The maximum number of shares per order of a particular security that a Market Maker is willing to buy or sell at his or her current price. Quote Dissemination System (QDS) Provides Nasdaq Market Maker quotations to outside services and vendors. Rreal-time trade reporting A requirement that Market Makers report each trade in a Nasdaq security to Nasdaq within 90 seconds of execution. record date The date on which a company's records are closed to determine which stockholders are to be sent dividends, proxies, rights, etc. red herring prospectus Industry jargon for a preliminary prospectus issued by underwriters or issuers to gauge interest in a prospective offering. It receives its name from the warning, printed in red, that information in the document is incomplete or subject to change before the issue. (See prospectus, underwriters) registered representative The employee of an NASD member firm who gives advice on which securities to buy and sell, and who collects a percentage of the commission income he or she generates. registrar The registrar is responsible for keeping track of the owners of bonds and the issuance of stocks. Working with the transfer agent, the registrar keeps current files of the owners of a bond issue and the stockholders in a corporation. The registrar ensures that no more than the authorized amount of stock is in circulation. If the registrar and transfer agent are the same company, then there must be a Chinese Wall separating the functions. (See Chinese Wall, transfer agent) Regulation T A rule of the Federal Reserve Board that governs the extension of credit by broker/dealers to customers to purchase and carry securities. retail investor See individual investor retail shareholder See individual investor reverse split See split right A privilege allowing existing shareholders in a company to buy shares of a new issue of common stock before it is offered to the public. road show A series of meetings with potential investors in key cities, designed and performed by a company and its investment banker as the company prepares to go public. Rule 10b-21 Securities and Exchange Commission rule that prohibits covering a short position in a security with stock purchased out of a new offering of the security, if the short position was established between the filing of the registration statement and the beginning of the distribution of the offering. (See short sale) Rule 10b-6 Securities and Exchange Commission rule that prohibits persons engaged in a distribution of securities from bidding for or purchasing those or similar securities until they have completed their participation in the distribution. Rule 10b-6A Securities and Exchange Commission rule that permits broker/dealers engaged in the distribution of a security to engage in "passive" market making transactions in the security being distributed without being in violation of the provisions of SEC Rule 10b-6. (See passive market-making) Rule 13d The Securities and Exchange Commission rule requiring disclosures by anyone acquiring a beneficial ownership of 5 percent or more in any equity security registered with the SEC. (See beneficial owner) Rule 15c3-1 Securities and Exchange Commission rule that requires broker/dealers maintain sufficient liquid assets to satisfy its net capital requirement. (See net capital rule) Rule 15c3-3 Securities and Exchange Commission rule that ensures that the broker/dealer has possession or control of customers' securities, and properly segregates these securities from securities the firm owns. The rule also requires that the broker/dealer deposits customers' funds in a Special Reserve Bank Account. Rule 17a-3 Securities and Exchange Commission rule that specifies the books and records related to the securities business that brokers and dealers have to make and keep current. Rule 17a-4 Securities and Exchange Commission rule that specifies the time period that broker/dealers must preserve Rule 17a-3 records and other documents pertaining to the business. (See Rule 17a-3 above) Rule 19b-4 Securities and Exchange Commission rule that provides procedures that self-regulatory organizations (SROs) follow to propose rule changes to the SEC. (See self-regulatory organization) Ssafe harbor The "Safe Harbor for Forward-Looking Information" allows company management to discuss in good faith a company's prospects and financial projections with analysts and investors without fearing litigation. (From the Private Securities Litigation Reform Act of 1995.) Schedules to the By-Laws See NASD By-Laws secondary market Markets where securities are bought and sold subsequent to original issuance. secondary offering A registered offering of a large block of a security that has been previously issued to the public. The blocks being offered may have been held by large investors or institutions, and proceeds of the sale go to those holders, not the issuing company. Also called secondary distribution. (See initial public offering, new issue, underwriter) securities See stock, bond Securities Act of 1933 The "disclosure statute" requires companies to register stock offerings to the public, and disclose important facts through a prospectus, and additional information filed with the Securities and Exchange Commission. (See prospectus, Securities and Exchange Commission) Securities Acts Amendments of 1975 considered the most significant securities legislation since the 1934 Act, this act ended fixed commission rates, initiated action toward development of a national market system, and granted the Securities and Exchange Commission final say in the adoption of rules by any of the self-regulatory organizations (SROs). (See Securities Exchange Act of 1934, self-regulatory organizations) Securities Exchange Act of 1934 This law created the Securities and Exchange Commission to regulate the securities industry. The law outlawed manipulative and abusive practices in the issuance of securities; it required registration of stock exchanges, brokers and dealers, and registration of exchange-listed securities; it also required disclosure of certain financial information and insider activity. The law gave the SEC surveillance authority over exchanges and brokers, and the authority to regulate margin requirements. The law also authorized the SEC to enforce the Securities Act of 1933. In 1938, the law was amended to allow regulation of over-the-counter markets through self-regulated organizations. (See Maloney Act, Securities Act of 1933) Securities Industry Association (SIA) The principal trade association and lobbying arm of the securities industry. Securities Industry Automation Corporation (SIAC) A facility owned by the New York and American stock exchanges that operates automated communication systems to support trading, surveillance and market data for these exchanges. Securities Investor Protection Corporation (SIPC) A nonprofit corporation that insures investors against the failure of brokerage houses, similar to the way that the Federal Deposit Insurance Corp. insures bank deposits. Coverage is limited to a maximum of $500,000 per account, but only up to $100,000 in cash. SIPC does not insure against market risk. securities analyst An individual who does investment research and makes recommendations to buy, sell, or hold. Most analysts specialize in a single industry or business sector. Securities and Exchange Commission (SEC) The federal agency created by the Securities Exchange Act of 1934 to administer that act and the Securities Act of 1933. The statutes administered by the SEC are designed to promote full public disclosure and protect the investing public against fraudulent and manipulative practices in the securities markets. Generally, most issues of securities offered in interstate commerce or through the mails must be registered with the SEC. (See Maloney Act, Securities Acts Amendments of 1975, Securities Exchange Act of 1934) Securities and Exchange Commission Rules See Rules securities exchange A physical facility in which buyers and sellers of securities, or their agents, meet to effect transactions. Securities Market Automated Regulated Trading Architecture (SMART) A restructuring of NASD's technology base using logical, modular software application development techniques, an enterprise-wide database structure, an organization-wide application structure, and an open systems environment. SelectNetSM An automated Nasdaq market service that enables securities firms to route orders, negotiate terms, and execute trades in Nasdaq securities, eliminating the need for verbal contact between trading desks. self-regulatory organization (SRO) An entity, such as the NASD, responsible for regulating its members through the adoption and enforcement of rules and regulations governing the business conduct of its members. sell-side trader An employee of a retail broker, institutional broker and trader, or research department who engages in securities transactions. (See buy-side trader) settlement The conclusion of a securities transaction; a broker/dealer buying securities pays for them; a selling broker delivers the securities to the buyer's broker. (See clearance, prompt receipt and delivery of securities) settlement date (T+3) The date specified for delivery of securities between securities firms, usually three business days after the execution of an order. (See prompt receipt and delivery of securities) shareholder of record The name of an individual or entity that an issuer carries on its books as the registered holder (not necessarily the beneficial owner) of the issuer's securities. (See beneficial owner) short sale The sale of shares of a security that the seller does not own. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Securities and Exchange Commission rules allow investors to sell short only when a stock price is moving upward. This prevents "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit. Short Sale Rule A Nasdaq rule that prohibits NASD members from selling a Nasdaq National Market stock at or below the inside best bid when that price is lower than the previous inside best bid in that stock. (See best bid, inside spread, short sale) short interest The total number of shares of a security that have been sold short by customers and securities firms that have not been repurchased to settle short positions in the market. (See short sale) SIA See Securities Industry Association SIAC See Securities Industry Automation Corporation SIC codes See Standard Industrial Classification codes SIPC See Securities Investor Protection Corporation SmallCap See The Nasdaq SmallCap Market SMART See Securities Market Automated Regulated Trading Architecture Small Order Execution SystemSM (SOESSM) Automated execution system for processing small order agency executions of Nasdaq securities (up to 1,000 shares). SOESSM See Small Order Execution System soft dollars Payment for brokerage services, such as research, through commissions or directed underwriting rather than fees. specialist A member of a stock exchange through which all trades in a given security pass. specific performance The remedy of performance of a contract in the specific form in which it was made, according to the precise terms agreed upon. split The division of outstanding shares of a corporation into a larger number of shares. For example: in a 3-for-1 split, each holder of 100 shares before would have 300 shares, although the proportionate equity in the company would remain the same. A reverse split occurs when the company reduces the total number of outstanding shares, but each share is worth more. sponsorship Enhancing the demand for a stock through research and order flow. spread The difference between the bid price at which a Market Maker will buy a security, and the ask price at which a Market maker will sell a security. (See inside spread) SRO See self-regulatory organization Standard & Poor's Corporation A company well known for its rating of stocks and bonds according to investment risk (the Standard & Poor's Rating) and for compiling the Standard & Poor's Index—commonly called the Standard & Poor's 500—that tracks 400 industrial stocks, 20 transportation stocks, 40 financial stocks, and 40 public utilities as a measurement indicative of broad changes in the market. Standard Industrial Classification (SIC) codes A numbering system established by the U.S. Office of Management and Budget that identifies companies by industry. It is used to promote the comparability of economic statistics from various sectors of the U.S. economy. stock An instrument that signifies an ownership position in a corporation. stock symbol A unique four- or five-letter symbol assigned to a Nasdaq security that is used for identifying it on stock tickers, in newspapers, on on-line services, and in automated information retrieval systems. If a fifth letter appears, it identifies the issue as other than a single issue of common or capital stock. stop-loss order A customer order to a broker that sets the sell price of a stock below the current market price, therefore protecting profits that have already been made or preventing further losses if the stock drops. (See limit order) street name Term given to securities held in the name of a broker on behalf of a customer. This arrangement allows shares to be transferred easily. If the stock were registered in the customer's name rather than the broker's name, physical certificates would need to be transferred. (See beneficial owner) subindex Categories of the Nasdaq Composite Index. There are currently 11 subindexes: Bank, Biotechnology, Computer, Industrial, Insurance, Nasdaq ADR (American Depositary Receipts), Nasdaq Regional Indexes, Nasdaq-100® (100 of the largest companies on the Nasdaq National Market), Other Finance, Telecommunications. (See Nasdaq Composite Index) suitability A suitability violation occurs when and investment made by a broker is inconsistent with the investor's objectives, and the broker knows or should know the investment is inappropriate. surveillance See market regulation syndicate A group of investment banking firms formed to conduct an underwriting of a new security issue. (See underwriter) syndicate manager Also called the managing underwriter or manager, the syndicate manager works with a company to prepare a new stock issue and register it with the Securities and Exchange Commission. The manager often also organizes the syndicate to spread the risk of a new issue. TT+3 See settlement date TARSSM See Trade Acceptance and Reconciliation ServiceSM third market Over-the-counter trading of exchange-listed securities among institutional investors and broker/dealers for their own accounts (not as agents for buyers and sellers). Stock exchange members or non-members may trade large blocks of stock off the floor to avoid the transaction's unsettling effect on the market, or avoid paying a commission on the sale. (See dealer market, fourth market, institutional investor, secondary market) Third Market Trade Reporting (TMTR) Automated data collection and reporting system that continuously reports last-sale prices reflecting trades in the over-the-counter market. (The) Nasdaq SmallCap MarketSM Securities of smaller, less-capitalized companies that do not qualify for inclusion in the Nasdaq National Market. There are more than 1,300 companies on the SmallCap market. (The) Nasdaq Stock MarketSM The Nasdaq Stock Market is a major national and international stock market that uses computers and telecommunications for the trading and surveillance of thousands of securities. The Nasdaq Stock Market is built on a unique system of competing Market Maker firms that list specific prices for the sale or purchase of securities. The Nasdaq Stock Market also is unique in its use of a flexible computer-screen trading system that enables people to trade by computer from wherever they are located. third-party claim A claim by the respondent against a party not already named in the proceeding. TMTR See Third Market Trade Reporting Trade Acceptance and Reconciliation ServiceSM (TARSSM) An automated service that facilitates inter- member reconciliation of uncompared trades in Nasdaq securities. (See Municipal Bond Acceptance and Reconciliation Service) trading halt The suspension of trading in a Nasdaq security while material news from the issuer is being disseminated. A trading halt generally lasts 30 minutes and gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis. (See material news) transfer agent An agent who maintains records of stock and bond owners to cancel and issue certificates, and resolve problems arising from lost, destroyed, or stolen certificates. (See registrar) transparent market The degree to which trade and quotation information is available to the public on a current basis. two-sided market The NASD regulation that Market Makers quote both a bid and ask price for each security in which they make a market and to execute orders at those prices. Uunauthorized trading The purchase, sale or trade of securities in an investor's account without the investor's prior authorization. underwriter An investment banker who assumes the risk of bringing a new securities issue to market. The underwriter will buy the issue from the issuer and guarantee sale of a certain number of shares to investors; this is firm-commitment underwriting. To spread the risk of purchasing the issue, the underwriter often will form a syndicate (underwriting group, purchase group) among other investment firms. If the investment firm is unwilling to buy the issue outright, other underwriting forms may be used. (See best-efforts underwriting, syndicate, syndicate manager) underwriting spread The difference between what an underwriter pays for a securities issue, and the price at which he offers it to the public. (See underwriter) uniform submission agreement Agreement signed by the parties indicating their submission to the arbitration process, and their agreement to be bound by the determination which may be rendered. unit A merger of two or more classes of securities into a single securities product. uptick A transaction executed at a price higher than the preceding transaction in that security. (See downtick) V volatility The degree of price fluctuation for a given asset, rate, or index. Usually expressed as a variance or standard deviation. (See beta) volume Amount of trading activity, expressed in shares or dollars, experienced by a single security or the entire market within a specified period, usually daily, monthly, or annually. Wwarrant A certificate issued by a company giving the holder the right to purchase securities at a stipulated price within specific time limits or with no expiration date (perpetual warrant). A warrant is sometimes offered by a company as an inducement to buy. when-issued trading A short form of "when, as, and if issued." The term refers to a conditional security: one authorized for issuance but not yet actually issued. All "when issued" transactions are on an "if" basis, to be settled if and when the actual security is issued. wire house A firm whose branch offices are linked by a communications system that permits the rapid dissemination of prices, information, and research relating to financial markets and individual securities. wrap fee Charge for an investment program that bundles or "wraps" a number of services (brokerage, advisory, research, consulting, management, etc.) together and covers them with a single fee based on the value of assets under management. Directory: dfi dfi -> The Arithmetic Operators dfi -> How to finance a used car dfi -> Auto leasing dfi -> Indiana Department of Financial Institutions Where To Go for Auto Service dfi -> State of indiana department of financial institutions Download 416.84 Kb. Share with your friends:
|