| 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 |
| At a discount |
Below the nominal value of the shares |
| At a premium |
Above the nominal value of the shares |
| Average |
Buying the same shares expecting the price to decline |
| 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 all (call) |
The price quoted included the bonus share issue (see Ex Bonus issue) |
| 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 |
| 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 |
| Gilt-edged securities |
Top grade securities |
| Growth stock |
Stocks with good potentials |
| Hot money |
Short term capital moving from on location to another in search of quick
profits |
| Listed shares |
Shares quoted and traded at the stock exchange |
| Odd lot |
Number of shares which is smaller than the normal trading lot (for SES,
less than 1000 shares) |
| 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 |
| Profit taking |
Converting paper profit into cash |
| 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 |
| Speculation |
A calculated risk taken to gain a quick profit |
| Stag |
Person who applies for new issues of shares hoping to sell at a higher
price immediately after having allotted the shares |
| Suspend trading |
Prohibiting the trading of the shares of a company |
| 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 |
