Category: Stock Market Glossary

Short Cover – Buying stock in order to repay a broker for the shares borrowed when the stock was sold…

Short Position – The condition of having sold a stock short. The value of a short position is a stock’s…

Short Sale – The sale of stock borrowed from a broker. Short sellers believe a stock’s price will drop and…

Short-Term Goals – Something you want to do in the near future (e.g., bike, shoes, video games).

Simple Interest – Interest calculated at regular intervals solely on principal. For example, if you have $100 in a savings…

Small-Cap Stock – Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion.…

Socially Responsible Investing (SRI) – A synonym for sustainable investing.

Sole-Proprietorship – A company owned and run by one individual who receives its profits or bears its losses. A proprietorship…

Specialist – A member company of a stock exchange that acts both as an auctioneer and a trader to match…

Speculative – Stocks that are highly unpredictable. Stock investments are volatile and can lead to large profits or severe losses.…

Spin-Offs – Occurs when an existing publicly owned company sells a part of its assets or distributes new shares in…

Spread – The difference between the current bid and ask prices for a stock at any given time.

Standard & Poor’s 500 (S&P 500) – A popular measure of stock prices consisting of 500 large companies that represent…

Stock – A type of security that signifies ownership in a corporation and represents a claim on a part of…

Stock Exchange – A market in which stocks are bought and sold. Where brokers gather to buy and sell stocks…

Stockholders/Shareholders – One who owns shares in a business.

Stock Index – A statistical gauge that uses a given number of stocks to measure changes in the overall stock…

Stock Splits – When a company divides each of the outstanding shares of a company thereby lowering the price per…

Street Name – Registering stock in the name of a broker who keeps the stock on behalf of the investor…

Subsidiary – A company that is 50% or more owned by another company, called a parent company.