P1:a/b P2:c/d QC:e/f T1:g
gloss JWBK182-McDowell April 25, 2008 16:35 Printer: Yet to come
Glossary 199split The division of outstanding shares of a corporation into a larger or smaller
number of shares. For example: In a three-for-one split, each holder of 100 shares
before would now have 300 shares.
spread The difference between the bid price and the ask price.
Standard & Poor’s Corporation (S&P) A company well known for its rating of
stocks and bonds according to investment risk (the Standard & Poor’s rating) and
for compiling the Standard & Poor’s Index.
stochastic An overbought-oversold indicator, made popular by George Lane,
which is based on the observation that prices close near the high of the day in
an uptrend. In a downtrend, they close near the low of the day.
stock A financial instrument that signifies an ownership position in a corporation.
Stock is the capital raised by a corporation through the issuance of shares. A person
that holds at least a partial share of stock is called ashareholder.
stock market This is a market for the trading and investing in company stock that
is a security listed on a stock exchange.
stop and reverse (SAR) Used to close the current trade and open a new trade in
the opposite direction.
stop limit order An order that is triggered when the stop price is reached but can
only be executed at the limit price.
stop-loss exit Also referred to as a stop, initial stop, or trailing stop. It is your
designated price level where you have determined you must exit your trade if it
goes against you. It is used to help control yourtrade risk. This is the worst case
scenario if the trade or investment does go against you. It is important to determine
the exit pointbeforeentering the trade or investment.
stop order A buy order placed above the market (or sell order placed below the
market) that becomes a market order when the specified price is reached.
stopped out A purchase or sale executed under a stop order at the stop price
specified by the customer.
straddle The purchase or sale of an equal number of puts and calls with the same
terms at the same time.
strike price This is the fixed price of an option.
supply=demand When supply equals demand, both the seller and buyer agree
on price but disagree on value.
support level In technical analysis, a price area at which a falling market is
expected to encounter increased buying support sufficient to stall or reverse the
decline.
swing trading Short-term trading approach designed to capture quick moves in
the market.