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

Category: S

STAGFLATION

When the economy is plagued by little to no growth, rising prices, and high unemployment.

STOP OUT PRICE

The selling in an auction market of government bills at the lowest acceptable price.

SECURITY MARKET LINE

The graphing of the relationship between the risk and the return of a specific investment at a specific time with the slope of the line indicating the market risk.

SHARPE INDEX

A measurement, through standard deviation, comparing a portfolio

SHORT TENDER

Satisfying the offer to purchase all or some of a shareholders stock by borrowing common stock to pay for the tender offer.

SPARK SPREAD

The spread illustrating the difference between natural gas and electricity. The spread is bought while in positive margins and sold once the margins become negative. Refer to crack spread.

STAGGERED BOARD

The trigger of a change from annual to staggered reelection of the director of a company by offering external tender as an antitakeover defense.

STORY PAPER

The written explanation of unique securities that are not well known on the market in order to make them appear less risky and more marketable.

SUPERSINKER

The shortest living trance of a mortgage in a series. It is retired through early repayment.

SELFLIQUIDATING LOAN

Selling inventory to pay off an asset conversion loan that is secured or unsecured usually obtained for a product that is seasonally demanded. AKA asset conversion loan.

SHELF REGISTRATION

A regulation imposed by the securities and exchange commission that allows securities to be registered once every two years causing advance registration of securities. AKA rule 415 registration.

SHOUT OPTION

An option that allows the buyer to lock in the profit before the possible loss occurs. Refer to cliquet, ladder, fixed strike shout, and floating strike shout option.

SPECIAL DIVIDEND

The ability of a company to get returns to shareholders. This is done when a company cannot decide on new opportunities that will generate profits for shareholders. Refer to cutting the melon

STAGS

A UK GILT STRIP security known as a Sterling Transfer Accruing Government Security.

STRAIGHTLINE DEPRECIATION

Applying reductions equally to a depreciable assets value in relation to predictions of its anticipated maturity. Refer to accelerated depreciation.

SURPLUS NOTES

Debt where securites are issued directly by a company not a trust. They mature in 10 to 30 years and must be approved by an insurance regulators.

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.

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