Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: S

SOVEREIGN RIGHT

A right that a state possesess which allows it to act for the benefit of all of its citizens as it sees fit.

SPECIAL ENDORSEMENT

An endorsement where the endorsee is named and to whom a negotiable instrument is to be paid.

SAMURAI

A bond issued by a foreign company using the yen as currency in the market in Japan. Refer to daimyo, geisha, shibosai, and shogun.

SHIBOSAI

A foreign company using the yen to make a transaction in Japan. Refer to daimyo, geisha, samurai, and shogun.

SIGHT DRAFT

A bill that must be paid to the hold when presented.

SPECIAL DRAWING RIGHT (SDR)

Currency that was brought about in 1970 to supplement national reserves and maintain foreign exchange market stability. This is a convertible currency.

STAKEHOLDERS

Anyone with that has a legal, financial or social interest in a company such as shareholders, managers, suppliers, directors, government, employees and the community. Refer to direct stakeholders and indirect stakeholders.

STRANGLE

Purchasing or selling options with the same maturity date but different strike prices taking advantage of market volatility. Refer to straddle.

SURPLUS SHARE

Reinsurance where the reinsurer only assumes loss beyond established retentions.

SATURDAY NIGHT SPECIAL

An unexpected offer of tender to suddenly takeover a company rapidly. Refer to dawn raid and premium raid.

SELFTENDER

The buyback of stock to increase the treasury stock contra account reducing equity on the open market by a company that sporadically has additional funds.

SHIKKO YAKUIN

A corporate executive officer responsible for identifying the duties of the board of directors within the single board system in Japan.

SINGLE BOARD SYSTEM

A corporation that is overseen by one board of directors consisting of 10 to 30 members guided by a chairman (possibly the CEO) who are nominated by internal sources and elected at

SPECIALIST

The market maker in the stock exchange. They manage and balance the market at all times. They are sometimes even a dealer.

STAMP DUTY

An extra charge placed on certain legal documents by purchasing a stamp to be placed on said document.

STRAP

When a firm is long on one put and two call options with equal strike prices creating a spread to make use of market volatility to secure unlimited profit potential with minimal

SWAP

An over the counter derivative with periodic payments. They mature in 1 to 10 years. For the foreign markets it is a pair of spot and forward transactions. The spot offsets the

SCALPER

A broker that overcharges for trades against established rules or an advisor who makes a profit by beating their clients to an investment.

SELL DOWN

Using syndications, participations and subunderwritings to reduce a new loans or bonds risk exposure.

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