A MONEY.NET PROPERTY

A-B C-E F-I J-O P-R S-Z Abbreviations

This glossary is designed to outline common terms and calculations used throughout our web site. Some calculations may vary from one quote provider to another.

S - Z

SALES CHARGE — The amount of the purchase price of mutual fund shares which the underwriter will receive and will therefore not be invested in shares.

SALLIE MAE — See: Student Loan Marketing Association.

SAME SIDE OF THE MARKET — Relates to option investor's expectations for the underlying security - i.e. bullish or bearish. Long calls and short puts are bullish. Short calls and long puts are bearish. See: Position Limits.

SCALE — Reoffering yields for each maturity of a serial bond issue.

SCIP CERTIFICATE — A fractional share of a stock issued by a corporation.

SEASONAL STOCK — A company whose earnings and sales vary because of weather, holidays, etc. e.g. A toy manufacturer with heavy sales at Christmas.

SEAT — A traditional figure-of-speech for a membership on an exchange.

SECONDARY DISTRIBUTION — Also known as a secondary offering. The redistribution of a block of stock some time after it has been sold by the issuing company. The sale is handled off the NYSE by a securities firm or group of firms and the shares are usually offered at a fixed price which is related to the current market price of the stock. Usually the block is a large one, such as might be involved in the settlement of an estate. The security may be listed or unlisted.

SECONDARY MARKET — The trading in existing or outstanding securities (vs. new issues). Secondary market transactions take place on exchanges or over the counter.

SECONDARY OFFERING — See: Secondary Distribution.

SECTION 8 PROGRAM — Refers to Section 8 of the U.S. Housing Code which allows for government subsidies of rent for low income individuals. A D.P.P. designed to take advantage of tax benefits in providing government assisted housing.

SECURED BOND — A corporate bond which has asset pledged as collateral (vs. debenture). See: Open-End and Closed-End Indenture.

SECURITIES ACT OF 1933 — The federal law which covers new issues of securities. It provides for full-disclosure of pertinent information relating to the new issue and also contains anti-fraud provisions.

SECURITIES AND EXCHANGE COMMISSION (SEC) — The Securities and Exchange Commission, established by Congress to help protect investors. The SEC administers the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities act Amendments of 1975, the Trust Indenture Act, the Investment Company Act, the Investment Advisers Act, and the Public Utility Holding Company Act.

SECURITIES EXCHANGE ACT OF 1934 — The federal law which regulates broker/dealers and secondary market securities transactions.

SECURITIES INDUSTRY AUTOMATION CORPORATION (SIAC) — An independent organization established by the New York and American Stock Exchange as a jointly owned subsidiary to provide automation, data processing, clearing, and communication services.

SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) — A nonprofit membership corporation created by an act of Congress to protect clients of brokerage firms that are forced into bankruptcy. Membership is composed of all brokers and dealers registered under the Securities Exchange Act of 1934, all members of national securities exchanges, and most NASD members. SIPC provides customers of these firms protection of up to $500,000 of coverage for their cash and securities held by the firm.

SECURITY — Any document such as stocks, bonds, or notes. However, an insurance or endowment policy, credit union shares, or fixed annuities are not considered securities.

SELF REGULATORY ORGANIZATION (SRO) — Organizations and associations, such as exchanges, the NASD and MSRB, which set industry rules.

SELLER'S OPTION — A special transaction on the NYSE which gives the seller the right to deliver the stock or bond at any time within a specified period, ranging from not less than six business days to not more than 60 calendar days.

SELLING GROUP — A group of securities firms, acting as agents and receiving a concession, which help to distribute a new issue. Not members of the syndicate.

SEP — Simplified Employee Pension - A type of pension plan which combines a corporate pension plan and an IRA. Under a SEP, the employer makes a contribution to the employee's IRA.

SEPARATE ACCOUNT — Used with a variable annuity. Investors' payments to the insurance company are invested in securities which are kept separate from the insurer's general investments.

SERIAL ISSUE — An issue which has bonds maturing each year for a set number of years.

SERIES OF OPTION — A complete description of an option contract including the name of the underlying security, the contract size, expiration date, and strike price.

SETTLEMENT — Conclusion of a securities transaction when a broker/dealer pays for securities purchased or delivers securities sold and receives from the contra broker the proceeds of a sale. Regular way settlement, for most securities, is five business days from trade date. Government bonds and options settle the next business day. A transaction done for cash settles on the same day.

SHARES OUTSTANDING — Amount (x1000) of stock held by shareholders.

SHARING ARRANGEMENT — The details of how costs will be borne and revenues split among the partners in a limited partnership.

SHELF — A type of new issue registration which allows the issuer some flexibility as to the timing of the issue. (Up to 2 years from filing).

SHORT AGAINST THE BOX — A type of short sale where the investor owns other shares of the same company, but does not wish to deliver hem at that time. This is done to lock in a profit but delay the tax consequences to another tax year.

SHORT COUPON — Buying stock to return stock previously borrowed to make delivery on a short sale.

SHORT INTEREST — The total number of shares of a particular stock which have been sold short and remain uncovered (not repurchased). Followers of the short interest theory believe an increase in short interest is a bullish signal since the short sellers will eventually need to purchase stock to cover their shorts. This cushion of potential buyers will tend to support a declining market or accelerate a rising market.

SHORT POSITION — The amount of stock an individual has sold short and has not covered, as of a particular date.

SHORT SALE — When selling short, a customer is selling securities which he does not own. He anticipates that the market price of the stock will decline and he can then purchase the stock (cover his short position) at a lower price and thus make a profit. Since the customer has sold stock which he does not own, the brokerage firm must lend him the stock.

SHORT SWING PROFIT — Profits made on stock held less than six months. Insiders are prohibited from taking short swing profits on the stock of their firm.

SIMULTANEOUS TRANSACTION — A transaction in which the dealer matches purchase and sale orders and therefore assumes no risk in the trades.

SINKING FUND — Money regularly set aside by a company to redeem its bonds, debentures, or preferred stock from time to time as specified in the indenture or charter. Relative to a municipality, monies set aside to provide for retirement of a term issue at or before maturity.

SIZE OF BID & ASK — The number (x100) of shares the prospective buyers and sellers are willing to trade.

SKIP DAY — Settlement for U.S. Government bond trades which occurs 2 business days after trade date (vs. Regular Way).

SMALL BUSINESS ADMINISTRATION (SBA) — Provides loans to small business investment companies (SBIC's) which supply venture capital and financing to small businesses. Debentures sold by SBIC's are fully guaranteed by the SBA.

SMALL ORDER EXECUTION SYSTEM (SOES) — Automated order entry system used in the over-the-counter market. See: Automated Order Entry System.

SPECIAL ASSESSMENT BOND — A bond secured by a compulsory levy on the benefited property.

SPECIAL ORDER ROUTING AND EXECUTION SYSTEM (SOREX) — Automated Order Entry System used on the Pacific Coast Stock Exchange. See: Automated Order Execution System.

SPECIALIST — A member of the New York Stock Exchange who has two primary functions. First, to maintain an orderly market, insofar as reasonably practicable, in the stocks in which he is registered as a specialist. In order to maintain an orderly market, the Exchange expects the specialist to buy or sell for his own account to a reasonable degree when there is a temporary disparity between supply and demand. Second, the specialist acts as a broker's broker. When a commission broker on the Exchange floor receives a limit order, say, to buy at $50 a stock then selling at $60, he cannot wait at the post where the stock is traded to see if the price reaches the specified level. So he leaves the order with the specialist, who will try to execute it in the market if and when the stock declines to the specified price. At all times the specialist must put his customers interest above his own.

SPECIALIST'S SALE — A private placement of a large block of stock that takes place off the floor.

SPECIALIZED FUND — A type of mutual fund whose portfolio consists of stocks in a specific industry or geographical area.

SPECIAL MEMORANDUM ACCOUNT (SMA) — A sub-account of a margin account. Any excess equity (above FRB initial requirement) is journaled to the SMA. Any SMA may be withdrawn by the client or used to purchase more securities.

SPECIAL OFFER — An offer to sell a large block of stock that is announced on the tape, takes place on the floor, and is reported on the tape.

SPECIAL TAX BOND — A municipal bond which is secured by a pledge of a specific, special tax. It is not a general obligation since it is limited to one specific tax.

SPECULATION — The employment of funds by a speculator, whose primary concern is for high return on investment. Safety of principal is a secondary factor.

SPECULATOR — One who is willing to assume a relatively large risk in the hope of gain. The speculator may buy and sell the same day or speculate in an enterprise which he does not expect to be profitable for years.

SPLIT — The division of the outstanding shares of a corporation into a larger number of shares. A 3-for-1 split by a company with 1 million shares outstanding results in 3 million shares outstanding. Each holder of 100 shares before the 3-for-1 split would have 300 shares, but his proportionate equity in the company would remain the same; 100 parts of 1 million are the equivalent of 300 parts of 3 million. Ordinarily splits must be voted by directors and approved by shareholders.

SPONSOR: — (1) Limited partnerships: The general partner which organizes and sells the partnership. (2) Mutual fund: The underwriter of the fund.

SPOT PRICE — The current exchange rate of foreign currencies set in the interbank market. Spot prices are used in analyzing foreign currency options, and are made public by the FRB.

SPREAD: — (1) The difference between the bid and offer price of a security. (2) The difference between the public offering price of a new issue and the proceeds received by the issuer; the "underlying spread". (3) The purchase and sale of puts or calls on the same underlying security with different expirations and/or strike prices. (4) The difference in the premium paid and premium received ina n option spread position (#3 above).

SPREAD LOAN PLAN — See: Contractual Plan.

STABILIZATION — When an underwriter of a new issue acts in the secondary market to maintain the price of a security at the original new issue offering price. To accomplish this, the underwriter would enter a bid in the secondary market that is at or slightly below the new issue offering price.

STANDARD AND POOR'S (S&P) — A company which publishes a variety of resource materials relating to securities. It provides a rating service for both municipal and corporate securities.

STANDARD & POOR'S 500 INDEX (S&P 500) — A composite index consisting of 500 stocks. It consists of four other indexes: S&P Industrial (400 stocks), S&P Transportation (20 stocks), S&P Utilities (40 stocks), and S&P Financial (40 stocks).

STANDBY UNDERWRITING — An arrangement in which securities firm is used to underwrite any unsubsidized shares of a rights offering. See: Rights.

STATUTORY DISQUALIFICATION — An automatic disqualification of a person seeking to be associated with a securities firm. A person will have a statutory disqualification if he is expelled form membership in a self-regulatory organization or from association with a member. Only the SEC has the ability to reinstate a person having a statutory disqualification.

STATUTORY VOTING — A method of voting for members of the board of directors of a corporation. Under this method, a shareholder receives one vote for each share and may cast his votes for each of the directorships. For example: An individual owning 100 shares of stock of a corporation that is electing six directors could cast 100 votes for each of six candidates. This method tends to favor the larger stockholder (vs. Cumulative Voting).

STOCK AHEAD — Sometimes an investor who has entered an order to buy or sell a stock at a certain price will see transactions at that price reported on the ticker tape while his own order has not been executed. The reason is that other buy and sell orders at the same price came in to the specialist ahead of his and had priority.

STOCK DIVIDEND — A dividend paid in securities rather than cash. The dividend may be additional shares of the issuing company, or in shares of another company (usually a subsidiary) held by the company.

STOCK EXCHANGE — See: Exchange.

STOCHASTICS — Measures at what point the price of a security is within the entire price range of the security over a given period.

 
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STOCKHOLDER — The owner of common or preferred stock, which evidences ownership interest (equity) in a corporation.

STOCKHOLDER OF RECORD — A stockholder whose name is registered on the books of the issuing corporation.

STOCKHOLDERS' EQUITY — Net Worth - The total equity ownership of a corporation by its stockholders. It consists of preferred stock, common stock, retained earnings, and capital surplus.

STOCK POWER — See: Assignment.

STOCK SYMBOLS — Every corporation whose transactions are reported on the NYSE or AMEX ticker or on NASDAQ has been given a unique identification symbol of up to five letters. These symbols abbreviate the complete corporate name and facilitate trading and ticker reporting. Some of the most famous symbols are: T (American Telephone & Telegraph) XON (Exxon), GM (General Motors), IBM (International Business Machines), S (Sears Roebuck), and XRX (Xerox).

STOP LIMIT ORDER — A stop order which becomes a limit order after the specified stop price has been reached.

STOP ORDER: — (1) An order to buy at a price above or sell at a price below the current market. Stop buy orders are generally used to limit loss or protect unrealized profit on a short sale. Stop sell orders are generally used to protect unrealized profit or limit loss on a holding. A stop order becomes a market order when the stock sells at or beyond the specified price and, thus, may not necessarily be executed at that price. (2) Notice sent by the SEC which prevents an offering of a new issue.

STRADDLE — An option position in which the investor purchases or sells a call option and a put option on the same underlying stock. The expiration month and exercise price of each contract must be the same.

STRAIGHT LINE — A method of calculating depreciation or amortization which results in a uniform expense spread evenly over the life of the asset. (vs. Accelerated Depreciation.) See: Depreciation, Amortization.

STREET NAME — Securities held in the name of a broker instead of his customer's name are said to be carried in "street name". This occurs when the securities have been bought on margin or when the customer (the beneficial owner) wishes the security to be held by the broker (the nominal owner).

STRIKE PRICE — See: Exercise Price.

STRIP — Brokerage house practice of separating a bond (which is held in trust) into its face and coupons, which are then sold separately as zero coupon bonds. Stripped U.S. Government bonds are generally referred to as "Treasury Receipts", but are better known as CATS, TIGRS, etc.

STRUCTURE — When a municipal bond issue will mature. See: Term Bonds, Serial Bonds, Balloon.

STUDENT LOAN MARKETING ASSOCIATION (SLMA) — Provides a secondary market for insured student loans made under the Guaranteed Student Loan Program. This private, for-profit corporation is also known as Sallie Mae.

SUBJECT — A nominal quote. See: Quote.

SUBORDINATE — To place a claim below others. (1) Subordinated Debenture: An unsecured bond which has a junior claim to all other general creditors. (2) Subordinated working interest. See: Reversionary Working Interest.

SUBSCRIPTION — The purchase of stock under the terms of a right or warrant, at the subscription price which may be higher or lower than the market price.

SUBSCRIPTON AGREEMENT — The application submitted by an investor wishing to join a limited partnership. All prospective investors must be approved by the general partner prior to admission as a partner.

SUITABILITY — An investment which meets a client's investment objectives and financial situation.

SUPPORT — The lower bound of an established trading range where buying pressure tends to bid up the price of the stock. (vs. Resistance). See: Oversold.

SNAPPING — The act of selling securities which you own and almost simultaneously purchasing different securities. A swap is often done to establish losses for tax purposes (tax-swap). Relative to bonds, a swap may be done to increase income, alter maturity, and/or upgrade quality.

SYNDICATE — A group of investment bankers who together underwrite and distribute a new issue of securities or a large block of an outstanding issue.

SYNDICATE LETTER — An invitation to participate in an underwriting syndicate which will detail the "rules" of the syndicate.

TAKEDOWN — The discount from the public offering price which a member will receive when buying bonds from the syndicate.

TAPE — See: Ticker.

TAXABLE EQUIVALENT YIELD — An adjustment made to a tax-free yield for comparison to taxable yields.

TAX ANTICIPATION NOTE (TAN) — A short-term municipal security used by a municipality to help its cash flow. They have a maximum maturity of one year and repayment is based on specific future tax collections of the municipality.

TAX CREDIT — A direct dollar for dollar offset of tax liability (vs. a deduction which offsets taxable income). See: Deduction.

TAX EXEMPT COMMERCIAL PAPER — A short term (less than 270 days) note of a tax exempt issuer for the purpose of working capital.

TAX PREFERENCE ITEM — Items deductible for Federal income tax purposes which are included in the calculation of the alternative minimum tax. See: Alternative Minimum Tax.

TAX SHELTER — A medium or process intended to reduce or eliminate the tax burden of an individual. They range from such conventional ones as tax exempt municipal securities to sophisticated D.P.P.'s in real estate, cattle raising, equipment leasing, oil drilling, research and development activities, and motion picture production.

TECHNICAL RESEARCH — Analysis of the market and stocks based on supply and demand. The technician studies price movements, volume, and trends and patterns which are revealed by charting these factors and attempts to assess the possible effect of current market action on future supply and demand for securities and individual issues.

TENANTS-IN-COMMON (TIC) — See: Joint Tenants.

TENDER: — (1) Act of surrendering securities in response to an offer to buy them at a set price as in a sinking fund call or tender offer. See: Tender Offer. (2) To submit a bid to buy a security, as in a U.S. Treasury bill auction.

TENDER OFFER — A public offer to buy shares from existing stockholders of one public corporation by another company or other organization under specified terms good for a certain time period. Stockholders are asked to "tender" (surrender) their holdings for stated value, usually at a premium above current market price, subject to the tendering of a minimum and maximum number of shares.

TERM BOND — Bonds of a new municipal issue where the entire issue has one maturity. A term issue will usually have a mandatory sinking fund.

THIRD MARKET — Trading a stock exchange listed security in the over-the-counter market by non-exchange member brokers.

TICKER — The telegraphic system which prints or displays last sale prices and volume of securities transactions on exchanges on a moving tape within a minute after each trade. Also known as the "tape".

TIGHT CREDIT — See: Tight Money.

TIGHT MONEY — Tight Credit - a period during which there is little money available for loans.

TIME DEPOSIT — Deposits where the depositor has agreed to leave the money in for a period of time. It is not available on demand.

TIME SPREAD — See: Calendar Spread.

TIME VALUE — The amount of premium which exceeds the intrinsic value of an option contract.

TIP — Supposedly "inside" information on corporation affairs that might give one a trading advantage.

TOMBSTONE AD — An advertisement of a new issue of securities. It is placed by the underwriters and gets its name from the fact tat it is bordered in black.

TRADE DATE — Day on which a transaction is executed.

TRADER — An individual who buys and sells for his own account for short-term profit. Also, an employee of a broker/dealer or financial institution who specializes in handling purchases and sales of securities for the firm and/or its clients.

TRADING AUTHORIZATION — Written permission, signed by the account owners naming a third party to transact business on behalf of the owners. Also called Power of Attorney.

TRADING FLOOR — See: Floor.

TRADING POST — The structure on the floor of the New York Stock Exchange at which stocks are bought and sold. About 100 stocks are traded at each post.

TRANSFER: — (1) The delivery of a stock certificate from the seller's broker to the buyer's broker and legal change of ownership, normally accomplished within a few days. (2) To record the change of ownership on the books of the corporation by the transfer agent. When the purchaser's name is recorded, dividends, notices of meetings, proxies, financial reports and all pertinent literature sent by the issuer to its securities holders are mailed direct to the new owner.

TRANSFER AGENT — A transfer agent keeps a record of the name of each registered shareowner, his or her address, the number of shares owned, and sees that certificates presented to his office for transfer are properly cancelled and new certificates issued in the name of the new owner.

TREASURY BILLS (T-BILLS) — Short-term obligations of the U.S. Government. They have 13 week, 26 week, and 52 week maturities. They are purchased at a discount and mature at face value. The difference between the purchase price and maturity value (the amount of the discount) is considered interest.

TREASURY BONDS — U.S. Government obligations with original maturities of more than one year up to ten years. They are issued in $1,000 denominations and pay interest semi-annually.

TREASURY RECEIPT — See: Strip.

TREASURY STRIP (T-STRIP) — See: Strip.

TREASURY STOCK — Stock issued by a company but later reacquired. It may be held in the company's treasury indefinitely, reissued to the public, or retired. Treasury stock receives no dividends and has no vote while held by the company.

TRIPLE NET LEASE — A lease arrangement in which the lessee will pay rent to the lessor, plus taxes, insurance, and maintenance on the property.

TRIPLE TAX EXEMPT — Municipal bonds in which the bondholder pays no federal, state, or local taxes on the interest. In general, bonds issued by possessions and territories of the U.S. (e.g. Puerto Rico) are triple tax exempt.

TRUST: — (1) A fiduciary relationship in which a person (the trustee) holds title to property for benefit of another party(s). (2) Trust Indenture Act requires a corporation to appoint a trustee to act for benefit of the bondholders as a class. See: Indenture.

TRUE INTEREST COST — A calculation used when bidding on a new municipal issue. New issues are usually awarded to the syndicate submitting the lowest NIC (net interest cost), but some issues are awarded on the basis of TIC, which takes into account the time value of money (compounding of interest). It is also known as the Canadian ethod. See: Net Interest Cost.

TRUST INDENTURE — See: Indenture.

TWENTY BOND INDEX — The average yield to maturity (on a particular day) on twenty select general obligation bonds with twenty year maturities. The BBI is computed on Thursday afternoon and published in the Daily Bond Buyer of Friday.

TWO DOLLAR BROKER — See: Independent Broker.

TYPE OF OPTION — Call or put.

UNCOVERED — Refers to a short option position in which the investor does not currently have another investment position which will meet the obligation of the option contract (vs. Covered). Also known as "naked".

UNDERWRITER — See: Investment Banker.

UNDERWRITING — The process of selling a new issue.

UNDIVIDED ACCOUNT — A form of a new issue syndicate where a member will be liable for a percentage equal to its participation, of any unsold balance regardless of the amount the member has sold. An undivided account is also known as an Eastern Account.

UNFOUNDED PENSION LIABILITIES — Monies owed by an employer to a retirement fund which will be paid in the future.

UNIFORM GIFT TO MINORS ACT (UGMA) — The act which establishes rules governing the purchase of securities for a minor. Each state has adopted the UGMA with few changes. A gift to a minor is irrevocable and securities must be registered in the name of an adult as custodian for the minor.

UNIFORM PRACTICE CODE — The rules established by an exchange or securities association which establish proper methods and procedures for transactions between members.

UNIT INVESTMENT TRUST — A type of investment company in which a portfolio is purchased and held with little or no change to the investments. Commonly used with municipal bond investments.

UNLISTED STOCK — A security not listed on a stock exchange. See: Over-the-Counter.

UNSECURED BOND — See: Debenture.

UP-TICK — A term used to designate a transaction made at a price higher than the preceding transaction. Also called a "plus-tick". A "zero-plus-tick" is a term used for a transaction at the same price as the preceding trade but higher than the preceding different price. Conversely, a down-tick, or "minus" tick, is a term used to designate a transaction made at a price lower than the preceding trade. A plus sign, or a minus sign, is displayed throughout the day next to the last price of each stock at the trading post on the floor of the New York Stock Exchange.

VARIABLE ANNUITY — A life insurance annuity contract where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of stocks. Upon retirement, the policyholder is paid according to his accumulated units whose dollar value varies according to the performance of the stock portfolio. Its objective is to preserve, through stock investment, the purchasing value of the annuity which otherwise is subject to erosion through inflation.

VERSUS PURCHASE (VSP) — See: Vs. Purchase.

VERTICAL SPREAD — See: price Spread.

VESTING — The process by which an employee becomes entitled to benefits in a retirement plan.

VETERANS ADMINISTRATION (VA) MORTGAGE — Mortgages granted to Veterans of the U.S. Armed Forces which are guaranteed by the VA.

VISIBLE SUPPLY — Published each day in the Daily Bond Buyer. It is the total par value of all competitive and negotiated issues scheduled to come to market during the upcoming thirty days. Issues with maturities of one year or less are excluded.

VOLATILITY — Price fluctuation.

VOLUME — The number of shares traded in a security or an entire market during a given period. Volume is usually considered on a daily basis and a daily average is computed for longer periods.

VOTING RIGHT — The common stockholder's right to vote his stock in the affairs of his company. Preferred stock usually has the right to vote when preferred dividends are in default for a specified period. The right to vote may be delegated by the stockholder to another person. See: Statutory voting, cumulative voting, proxy.

VS. PURCHASE (VSP) — A method of identifying specific securities to be sold for tax purposes. Unless otherwise state, the IRS assumes securities are sold on a FIFO basis.

WARRANT — A certificate giving the holder the right to purchase securities at a stipulated price within a specified time limit or perpetually. Sometimes a warrant is offered with securities as an inducement to buy.

WASH SALE — A sale of securities at a loss with the subsequent disallowance of the loss by the IRS. If an individual sells a security at a loss and, within 30 days, repurchases substantially the same security, the IRS will consider it a wash sale and will disallow the loss.

WESTERN ACCOUNT — See: Divided Account.

WHEN ISSUED (WI) — A short form of "when, as, and if issued". The term indicates a conditional transaction in a security authorized for issuance but not as yet actually issued. All "when issued" transactions are on an "if" basis, to be settled if and when the actual security is issued and the exchange or National Association of Securities Dealers rules the transactions are to be settled.

WILDCATTING — Drilling for oil or gas in an unproven are (vs. Developmental Program). Also called Exploratory Drilling.

WIRE HOUSE — A brokerage firm with branch office network. Branches linked together various communications devices.

WITHHOLDING: — (1) Shares of a hot issue retained by an underwriter for its own purposes. A violation of NASD rules. See: Freeriding. (2) IRS requires financial institutions to report social security numbers, payments of interest, dividends, and sale proceeds, known as backup withholding.

WITH RIGHTS OF SURVIVORSHIP (WROS) — See: Joint Tenants.

WORKING CAPITAL — A financial calculation equal to a corporation's current assets minus its current liabilities.

WORKING CONTROL — Theoretically, ownership of 51 per cent of a company's voting stock is necessary to exercise control. In practice, and this is particularly true in the case of a large corporation, effective control sometimes can be exerted through ownership, individually or by a group acting in concert, of less than 50 per cent.

WORKING INTEREST — Direct participation with unlimited liability in a drilling program (vs. Limited Liability in a Limited Partnership).

WORKOUT — A nominal quote. See: quote.

WRITER — The seller of an option contract.

YELLOW SHEETS — The daily quotation sheets in which interdealer, wholesale quotes for over-the-counter corporate bonds are published.

YIELD — Also known as return. The dividends or interest paid by a company expressed as a percentage of the current price. A stock with a current market value of $40 a share paying dividends at the rate of $3.20 is said to return 8 per cent ($3.20 / $40.00). May also refer to yield to maturity.

YIELD TO CALL (YTC) — Rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to the maturity date.

YIELD TO MATURITY (YTM) — The yield of a bond to maturity takes into account the price discount from or premium over the face amount. It is greater than the current yield when the bonds is selling at a discount and less than the current yield when the bond is selling at a premium.

ZERO-COUPON BONDS — A bond sold at a substantial discount which does not pay periodic interest.

ZERO-PLUS-TICK — See: Up-tick.