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Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "S"

Displaying next 200 results of 891
Selling Short
Definition: 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 per share. Then, on Aug. 1, you purchase 1000 shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by selling short.
Selling Short Against The Box
Definition: Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stock in the box may be inaccessible, or the seller may not wish to disclose ownership. The traditional motive for this transaction was to defer capital gains taxes. However, this method became infeasible under the Taxpayer Relief Act of 1997.
Selling Syndicate
Definition: A group of underwriters that issues a firm's securities by buying them from the issuing firm and reselling them to a group of smaller brokerage firms for eventual sale to individual investors.
Selling The Spread
Definition: A spread whose option to be sold is trading at a higher premium than the option to be bought.
Selling, General, And Administrative (SG&A) Expenses
Definition: Expenses such as salespersons' salaries and commissions, advertising and promotion, travel and entertainment, office payroll and expenses, and executives' salaries.
Semistrong-form Efficiency
Definition: A form of pricing efficiency that profits the price of a security fully reflects all public information (including, but not limited to, historical price and trading patterns). Compare weak-form efficiency and strong-form efficiency.
Senior Debt
Definition: Debt whose terms in the event of bankruptcy, require it to be repaid before subordinated debt receives any payment.
Senior Mortgage Bond
Definition: A bond that, in the event of bankruptcy, will be redeemed before any other bonds are repaid.
Senior Refunding
Definition: Replacement by the issuer of securities with 5-to 12-year maturities with securities of 15-year or longer maturities, in order to delay, reduce, or consolidate payment.
Senior Security
Definition: A security that, in the event of bankruptcy, will be redeemed before any other securities.
Seniority
Definition: The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.
Sensitive Market
Definition: A market that reacts to a great extent to good or bad news.
Sensitivity Analysis
Definition: Analysis of the effect on a project'sprofitability of changes in sales, cost, and so on.
Sentiment Indicators
Definition: The general feeling of investors about the state of the market, such as whether they are bullish or bearish.
Separate Customer
Definition: Method of allocating insurance by the Securities Investor Protection Corporation. Each account that is under the name of a different person or group of people is entitled to maximum protection.
Separate Tax Returns
Definition: Tax returns of married persons who choose to file their returns individually, usually because this approach produces lower overall tax payments.
Separate Trading Of Registered Interest And Principal Securities (STRIPS)
Definition: Long-term notes and bonds divided into principal and interest-paying components, which may be transferred and sold in amounts as small as $1000. STRIPS are sold at auction at a minimum par amount, varying for each issue. The amount is an arithmetic function of the issue's interest rate.
Separation Property
Definition: The property that portfolio choice can be divided into two independent tasks: (1) Determination of the optimal risky portfolio, which is a purely mathematical problem, and (2) the personal choice of the best mix of the optimal risky portfolio and the risk-free asset, which depends on a person's degree of risk aversion.
Separation Theorem
Definition: Theory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using the NPV rule, regardless of personal preference.
Sequential Bidding
Definition: The FDIC's practice of reviewing bids for failing banks in the 1980s. On December 30, 1986, the FDIC Board of Directors established an order of priority for six alternative methods of passing assets to acquirers under authority delegated by the FDIC Board of Directors to staff prior to the receipt of the bids.
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