|
Above par |
Above nominal value |
|
Allotment |
The number of shares allotted to a subscriber
of a new issue of shares |
|
Arbitrage |
The purchase of shares in one market and
the almost simultaneous sale in another |
|
Bear |
A person who sells shares expecting the
price to decline |
|
Bear market |
A market in which the price trend is declining |
|
Blue chip |
The shares of a company with good management
and excellent financial performance |
|
Bond |
A document evidencing a debt whereby the
borrower agrees to pay the lender (bondholder) specified interest for a fixed time
period and to return the principal sum on maturity date |
|
Bonus shares |
Additional shares issued free to existing
shareholders in proportion to their current holdings |
|
Book Closing Date |
The date when the shareholder records of
a company are closed for registration for the purpose of determining entitlement
of dividends, bonus, or right issues |
|
Book Value |
The value as indicated in the financial
statement |
|
Bull |
A person who buys shares expecting the prices
to rise |
|
Bull Market |
A market in which the price trend is rising |
|
Brokerage |
A fee, fixed by the Stock Exchange, charged
by the stockbroker for the service of buying or selling |
|
Call Option |
A negotiable contract whereby a seller (called
the writer) for a certain sum of money (option premium) gives the buyer the right
to buy from him within a specified time period, a specified number of shares at
a pre-determined price (striking or exercise price) |
|
Captial gain |
Profit from the sale of capital assets |
|
Chartist |
A person who relies on the price charts
to make investment decisions |
|
Convertible Bond |
A bond that may be exchanged for a specified
number of shares of the issuing company |
|
Corner |
To control the shares of a company so that
they cannot be obtained for delivery except at the terms set by the group which
has cornered the market |
|
Cum bonus issue |
The price quoted includes the current bonus
issue (see Ex Bonus Issue) |
|
Cum dividend |
The price quoted includes the current dividend
(see Dividend) |
|
Cum right issue |
The price quoted includes the rights issue |
|
Dealers representative |
Person with a dealer representative license
granted under the Securities Industry Act and authorized to deal in securities |
|
Debenture |
Money borrowed by a company with a charge
on its properties |
|
Dividend |
Payment made by a company to its shareholders
as a return on their capital |
|
Exercise Price |
The specified price at which the warrant
may be exercised to purchase the underlying share |
|
Exercise Ratio |
Number of Warrants required by investor
to exercise in order to receive one underlying share |
|
Expiry |
The date on which a warrant expires, and
becomes worthless if not exercised |
|
Ex Bonus Issue |
Excluding bonus issue (see also Cum bonus
issue) |
|
Ex dividend |
Excluding dividend (see also Cum dividend) |
|
Ex rights issue |
Excluding right issue (see also Cum rights
issue) |
|
Float a share issue |
To issue shares in order to raise capital |
|
Fundamentalist |
A person who relies on economic and financial
analysis in investment decision making |
|
Growth stock |
Stock of company which is growing earnings
faster than its industry or the overall market |
|
Hot money |
Short term capital moving from one location
to another in search of quick profits |
|
In the Money |
Situation in which a warrant exercise price
is below the current market price of the underlying share |
|
Listed shares |
Shares quoted and traded at the stock exchange |
|
Odd lot |
Number of shares which is smaller than the
normal trading lot (for Bursa Malaysia, less than 100 shares) |
|
Out of the Money |
Situation in which exercise price is higher
than the market price of the underlying share |
|
Overcapitalized |
A company which has too much capital and
is unable to generate enough profit to provide a fair rate of return on its capital |
|
Oversubscribed |
In a new issue of shared, the applications
received exceed the amount offered for sale |
|
Paper profits |
Profit that has not been realized |
|
Portfolio |
The whole range of securities held by an
investor |
|
Premium/Discount |
The percentage(%) difference by which the
sum of the warrant price and the exercise price exceeds the underlying share price.
The warrant is said to be trading at a premium (discount) when the percentage diffence
is positive (negative). Warrant trading at huge discount are often considered attrative |
|
Profit taking |
Converting paper profit into realised profit |
|
Rally |
A price recovery in the market following
a period of decline |
|
Right issue |
Rights given to existing shareholders to
subscribe to additional shares at a fixed price |
|
Suspend trading |
Prohibiting the trading of the shares of
a company |
|
Underlying Share |
A share subjected to delivery upon the exercise
of a warrant |
|
Unit trust |
a financial institution set up to poll the
financial resources of small investors and invest the funds in securities by professional
fund managers |
|
Warrants |
Securities entitling the warrant holder
the right to purchase a specific amount of the underlying share at a fixed exercise
price. The profit from exercising the warrant is the amount by which the underlying
share price exceeds the sum of the cost of warrant and the exercise price |
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