Descriptionary

price/earnings ratio a stock price divided by earn­ings per share for the previous year or projected for the coming year. Also known as the multiple, or P/E, ratio.

prospectus a circular containing information on a company's history, finances, officers, plans, and so forth, sent to potential investors in a stock offering.

publicly held of a company with shares, held by the public.

pure play Wall Street term for a company that spe­cializes in only one business, as distinguished from a conglomerate.

quotation a bid and asked price on a security or commodity.

quotation board in a brokerage house, an elec­tronic display of current price quotations.

radar alert the monitoring of unusual trading in a company's stock in order to detect an impending takeover attempt. Also known as shark watching.

raider one who attempts to take over a company by buying up a large portion of its stock.

rally a rise in stock prices after a flat or bear market.

rating a rating of securities and credit risk by rating services such as Standard and Poor's Corporation.

registered competitive trader a New York Stock Exchange member who trades securities on his own behalf.

resistance level the high-water mark of a security's price; it is difficult to break through due to market psychology.

return profit on an investment.

rigged market a market being rigged by manipulators.

rollover the moving of assets from one investment to another.

round lot in stock, 100 shares or a multiple of 100.

round-tip trade a security that is purchased and then resold within a short period of time.

Sallie Mae the National Student Loan Marketing Association.

SP

Standard and Poor's

scalper an investment adviser who purchases a security and then recommends it to clients in order to drive up its price and take a quick profit.

scorched earth a strategy of a company threatened with being taken over of making itself less attractive to the potential acquiring company, achieved by sell­ing off the most desirable part of its business. Also known as shark repellent.

scripophily collecting stock and bond certificates for their "collectible" value rather than as securities, as a baseball card collector.

seat a purchased membership on an exchange.

securities stocks, bonds, notes, and similar items.

securities and commodities exchanges where secu­rities, options, and futures contracts are bought and sold.

Securities and Exchange Commission (SEC) a

federal agency that regulates and oversees investment companies, over-the-counter brokers and dealers, investment advisers, and the exchanges to protect the public from fraudulent practices.

selling short selling borrowed stocks in anticipa­tion of a drop in price, after which the stocks may be repurchased at a lower price to make a profit.

shakeout a development in the market that scares investors into selling off their stock.

share a unit of ownership in a corporation or mutual fund.

shareholder an owner of stock in a corporation.

shark one who attempts a hostile takeover of a company; a corporate raider.

shark repellant collective term for any device or strategy used to ward off a hostile takeover attempt.

shark watcher a firm hired to monitor trading in a company's stock in order to detect an impending takeover attempt.

sideways market a flat market.

sleeper a new stock issue with great potential that is overlooked by investors.

sleeping beauty

a corporation rich in assets and ripe for a takeover attempt.

soft currency currency that cannot be interchanged with another country's currency, such as the Russian ruble.

SPDRS Standard and Poor's Depository Receipts. A group of ETFs that track the Standard and Poor's index. Also known as spiders.

speculation investing in high-risk securities with the belief they will produce a higher yield.

speculator one who trades in high-risk securities.

spiders see spdrs.

split an increase in the number of shares held by corporate shareholders with no change in equity. For example, a two-for-one split would double the number of shares owned but halve their value. A stock split is made to improve the stock's market­ability.

spread the difference between a stock's bid and asked price.

stag an investor who regularly purchases then quickly resells securities within a short period of time to make a fast profit.

Standard and Poor's Corp. a company that offers several investment and ratings services.

Standard and Poor's index a measurement of the average up or down movements of 500 widely held common stocks, known as the SP 500.