Glossary of Common Stock Market Terms
The following is a listing of terms, all starting with the word “stock” and used in stock market exchanges. It is an indispensable resource for the potential investor as well as those who are unsure what the stock market is all about.
Stock – Ownership of a business entity (corporation) indicated by shares, which represent a price of the company’s assets and earnings. It is distinct from the property and the assets of a business which may fluctuate in quantity and value.
Stock Ahead – When two or more orders for a stock at a certain price arrive about the same time and the stock exchange’s priority rules take effect. Rule may stipulate that the larger order will be executed first, or a bid made first should be executed first.
Stock Bonus Plan – A plan used as a corporate incentive that rewards employee performance with stock in the company.
Stock Buyback – A corporation’s purchase of its own outstanding stock, usually in the hope that the purchase will raise the company’s earnings per share or offset shares issued to executives in stock options.
Stock Certificate – A document that represents the number of shares of a corporation owned by a shareholder.
Stock Dividend – Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders.
Stock Exchange – Formal organization, approved and regulated, made up of members who use the facilities to trade certain common stocks. The New York (NYSE) is the world’s leading stock exchange among all other world’s major Stock Exchanges.
Stock Market Terms Resource
World’s Leading Stock Exchanges
Stock Index – A method in which a section of the stock market is measured. Many of these indexes or indices are cited by financial services or business news. They are used as benchmarks or measures of portfolio performance. An example is Dow Jones Industrial Averages that tracks a portfolio of stocks, including the total stock market, select dividend, target date, and other stock market reports.
Stock Market Terms Resource
Stock Jockey – A stockbroker who actively and frequently buys and sells shares in a client’s portfolio.
Stock List – The department within a stock exchange that oversees compliance with listing requirements and exchange regulations.
Stock List Deletion – A security issue that is removed or delisted from the list of tradable security issues of an exchange. It is usually accompanied with a reason for deletion and the deletion date.
Stock Market – The market for trading equities. It is a public market for the trading of company stock (shares) at an agreed price. The term “market” is loosely used to mean a network of economic transactions, not a physical facility or discrete entity.
Stock Option – An option whose underlying asset is the common stock of a corporation. It’s possible that when stocks fall options can become worthless.
Stock Power – A power of attorney form giving ownership of a security to another person, brokerage firm, bank, or lender after it has been sold or pledged to that party.
Stock Price Index – A statistical measure of the state of the stock market, based on the performance of certain stocks.
Stock Price Index Value (SPIV) – The number usually quoted as the value of an index. SPIV is based on the aggregate, float quoted market value of the index constituents and is calculated for all S&P/TSX indices. It is calculated at the end of the trading session for all S&P/TSX indices and throughout the trading session for certain S&P/TSX indices.
Stock Purchase Plan – A plan allowing employees of a company to purchase shares of the company.
Stock Rating – An evaluation of the expected financial performance of common stocks by a rating agency.
Stock Record – The accounting of a brokerage firm keeps of all securities held in inventory.
Stock Screener – Analyzes various stocks in search of those that meet predetermined criteria that can add value to the investor’s portfolio.
Stock Selection – An active technique on portfolio-management that focuses on the selection of a particular stock to an advantage, rather than on broad asset-allocation choices.
Stock Split – Occurs when a company issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. The corporate action increases the number of shares or securities issued and outstanding, without the issuer receiving any consideration for the issue. Each security holder gets more securities, in direct proportion to the amount of securities they own on the record date; the percentage ownership of the issuer does not change. For example, a two-for-one stock split involves the issuance of two new securities for every old security.
Stock Symbol – Also known as “stock ticker.” A letter designation, abbreviation is usually from a one-character to a three-character, alphabetic root symbol, assigned to a publicly traded security or a listed issuer on a Stock Exchange that allows transactions to be recorded.
Stock Symbol Extension – A character or characters that may follow the stock symbol to uniquely identify a listed security.
Stock Watcher – A computer software that monitors and investigates stock trading activities to identify any unusual activity-movements for security purpose. An example is Bloomberg Stock Watcher.
Stockbroker – An investment professional, a registered representative, who deals with investors and providing advice.
Stockholder – Also called a “shareholder.” A person who owns shares in a company.
Stockholder Books – Set of books kept by the company management for its annual report that follows Financial Accounting Standards Board rules for presentation to shareholders. This may vary according to country’s taxation rules.
Stockholder of Record – A stockholder whose name is registered on the books of a corporation and therefore will receive dividends from the company.
Stockholder’s Equity – Also known as “Net Worth.” The residual claims that stockholders have against a company’s assets, calculated by subtracting all current liabilities and debt liabilities from total assets.
Stockholder’s Report – The annual report given to stockholders to inform them of the company’s financial status during the period.
Stock Index Futures – Futures contracts with a stock index as the underlying interest. A security that uses composite stock indexes to allow investors to speculate on the performance of the entire market. The settlement of the contract is in cash.
Stock Index Option – An option in which the underlying security is a common-stock index.
Stock Index Swap – A swap involving a stock index.
This list of common stock market phrases – all starting or prefixed with the word “stock” – is geared towards familiarization of some terms and phrases associated with stocks and the market trading.
Resources for Common Stock Market Terms, Phrases, and Definitions
Glossary of terms from Nasdaq
Stock market terms from TMXmoney
Tel Asiado is a writer, author, and business consultant, previously, IT manager & consultant. Her articles reflect her interests, from small business, biographies & histories, to classical music especially Mozart, art & literature, biographies, and Christian writings. Tel has produced non-fictions, e-books and anthologies. Her education is MBA in Computer Management, BSc Chemistry, Diploma in Small Business & Internet Mktg, and Cert IV Training and Assessment (TAA). Her small office/home site is homebizideasnow.com, and numerous information of Mozart and classical music, mozartandclassicalmusic.com.
Related Research For Teachers, Students, and Kids
Stocks are listed and traded in stock exchanges which are entities of a corporation or mutual organ...
Corporate Headquarters of Esprit Holding Limited (ESPRIT) Global Business Headquarters: Ratingen, G...
Corporate Headquarters One Microsoft Way, Redmond, Washington, United States Website Background and...
Corporate Headquarters San Jose, California, United States Website Background and Company History o...
Corporate Headquarter of Bose Corporation Bose Corporation The Mountain Framingham, MA 01701 (508) ...
Follow and Socialize The Free Resource
