Stock Market Terms By Letter: S

s

Scrip: Synonym for Share.

Scrip Issue: Synonym for Bonus Issue.

Security: Strictly a secured stock, that is, a Gilt-edged stock or Debenture but it is now used loosely to describe any stock or share. Also it is the Assets charged to secure a loan.

Settlement: The completion of stock-exchange transaction.

Settlement Day: The day appointed for the settlement of transactions carried out in one account.

Share: One part of the Equity Capital of a company.

Share Capital: See Equity Capital.

Share Swap: The issue of new shares by a company in exchange for a piece of asset owned by another party. In the normally accepted usage of the word, the asset being exchanged for is in the form of a block of shares of another company.

Shareholders Equity/Funds: The residual item of the Balance Sheet after all the Liabilities have been deducted from all the Assets.

Short: To sell a share without having actual ownership to it. Normally ‘Short Selling’.

Shorts: UK term used for government bonds redeemable within live years.

Short-term: When used to describe accounting items, prospects or capital appreciation, it generally means a period of up to about a year.

Sinking Fund: A fund held in escrow to provide for the eventual payment of a long-term Loan-Stock.

Slump: Can be used for both the stock market and the economy. In the former case, it means a sharp and prolonged decline in the prices of stocks. In the latter case, it means a prolonged and severe Recession.

Speculation: The dealing in assets with the sole object for short-term capital gains.

Spin-off: The hiving oil” of a subsidiary or a part of the business in the form of a separately listed company, normally owned by the shareholders of the former.

Split: An act of dividing an Allotment Letter for shares into a greater number of allotment letters.

Stag: One who applies for more shares in a new issue than he can afford to retain in the hope of receiving allotment which can be sold at a profit soon after dealings begin.

Stale Bull: A speculator who has bought shares in anticipation for a short-term rise which has not materialized.

Stamp Duty: A tax payable on certain transactions.

Stock Split: An act of dividing one share (or a number of shares) into a greater number of shares, eg. a three-for-two Split. This is usually done in order to make shares cheaper on a per unit basis to broaden the appeal of a share.

Stock Transfer Form: Form used to effect change of ownership of registered shares.
Stock Unit: The unit of quotation of a stock.
Stop Loss (Order): A sell order given at the time of purchase of a share just in case the share should suffer an unexpected sharp drop in price. The initial drop would trigger off the sale so as to prevent further loss (hence the name).
Striking Price: The price at which an option is granted.
Subdivisions (of shares): See Stock Split.

Subscription Right: The right to subscribe for a stock or share at a certain price at some time in the future.

Subsidiary: Defined as a company whose shares is more than 50 per cent owned by another company.

Sweetener: An additional ‘bait’ offered together with a less popular security in order to make it more marketable e.g. a Warrant can be offered together with a Loan Stock

Synergy: The “1 + 1 = 3” effect. This is the supposed extra benefit which can be obtained when a company takes over another and merge the operations.