See: Corporation; Mutual Fund; Shareholder

Shareholder
An individual who owns one or more shares of a corporation or mutual fund. Shareholders may earn dividends and shareholders of common stock have voting rights with regard to matters that affect the corporation.

See: Share; Stockholder; Voting Rights

Shareholder's Equity
The assets of a corporation minus the liabilities of the corporation. Also called equity, or net worth.

See: Asset; Equity; Liability; Net Worth; Stockholders' Equity

Short Covering
Buying stock in order to close out, or cover, a position previously created by a short sale.

See: Close A Position; Covering Short; Selling Short

Short Interest
The total number of shares that have been sold short and have yet to be repurchased.

See: Selling Short; Short Interest Theory

Short Interest Theory
The belief that a large short interest in a particular security means the market price of the security is about to increase because the short positions must eventually be covered, or repurchased. The theory asserts that this cushion of potential buyers will serve to support a declining market or accelerate a rising market.

See: Bear Market; Bull Market; Close A Position; Selling Short; Short Interest; Short Position

Short Market Value
The number of shares of a short security multiplied by the current market price.

See: Current Market Value; Long Market Value; Selling Short

Short Position
Stock shares that an individual has sold short and has not yet covered, as of a particular date.

See: Close A Position; Long Position; Selling Short

Short Squeeze
A situation that occurs when the price of a security increases dramatically, thus pressuring short sellers to cover their short positions in order to avoid greater losses. The covering of short positions serves to raise the price of the security even more, thus increasing the losses of short sellers who have still not covered their short positions.

See: Close A Position; Selling Short; Short Interest Theory; Short Position

Short Swing Profit
A profit earned on a security held less than six months. Insiders are prohibited from taking short swing profits on the stock of their firm.

See: Insider; Short Term Gain (Loss)

Short Term
An investment with a maturity of a year or less.

See: Intermediate Term; Long Term; Maturity Date

Short Term Debt
A debt obligation due within a year.

See: Debt; Long Term Debt; Medium Term Bond

Short Term Gain (Loss)
A realized profit or loss on an investment held for six months or less.

See: Capital Gain; Capital Loss; Realized Profit (Loss)

SIA (Securities Industry Association)
A trade association for broker-dealers.

See: Broker; Dealer

Sideways Market
Situation that occurs when prices move within a narrow range, with minimal fluctuations.

See: Horizontal Price Movement; Range

Simplified Employee Pension Plan (SEP)
A type of pension plan whereby both the employee and employer contribute to the employee's individual retirement account.

See: Individual Retirement Account; Pension Fund; Qualified Pension Plan Or Trust

Simultaneous Transaction
A transaction which involves no risk for the broker-dealer because he is able to match purchase and sale orders for customers.

See: Transaction

SIPC (Securities Investor Protection Corporation)
A nonprofit corporation established by an act of Congress in 1970 in order to protect the customers of brokerage firms from the insolvency of those firms. All broker-dealers registered with the Securities and Exchange Commission and with a national exchange are required to join. SIPC provides up to $500,000 in protection, of which no more than $100,000 may be in cash.

See: Insolvency; Securities And Exchange Commission

Size
The number of shares that are available at a particular price.

See: Stock Ahead

SMA (Special Miscellaneous Account)
A memorandum account that records a customer's excess margin and buying power. Excess funds may come from several sources: sales proceeds, market value appreciation, dividends, and cash or securities put up in response to a margin call.

See: Buying Power; Margin; Margin Account; Margin Call

Small Investor
An individual that purchases small quantities of stocks and bonds--also called "retail investor".

See: Retail Investor; Institutional Investor

Soft Market
A market characterized by excess supply, thus causing a decrease in prices. Also called a buyer's market.

See: Weak Market

SL (Sold)
Abbreviation for sold.

See: BOT

Specialist
A member of an exchange who is responsible for maintaining a fair and orderly market in those securities for which he is registered. The specialist accomplishes this by buying and selling for his own account to reduce any temporary disparities between supply and demand, to the extent possible. The specialist may also act as a broker's broker by executing orders for other members in return for a share of the commission.

See: Broker's Broker; Commission; Floor Broker; Floor Trader; Market Maker

Special Miscellaneous Account (SMA)
A memorandum account that records a customer's excess margin and buying power. Excess funds may come from several sources: sales proceeds, market value appreciation, dividends, and cash or securities put up in response to a margin call.

See: Buying Power; Margin; Margin Account; Margin Call

Special Purpose Funds
Funds that invest primarily in a certain industry or group of related industries, or in a certain geographic area.

See: Mutual Fund

Speculation
Purchasing high-risk investments which may provide above average gains, but also carry a higher than average possibility for loss of principal.

See: Risk; Risk/Reward Ratio; Speculator

Speculator
An investor who is willing to assume great risk in return for potentially great rewards.

See: Speculation

Split
Partitioning the outstanding shares of a corporation into a larger number of shares, without affecting shareholders' equity or the total market value at the time of the split. For instance, if a stock valued at $100 splits 2-for-1, an investor who owns 100 shares would now own 200 shares valued at $50.

See: Reverse Split; Stock Split

Spot Market
Commodities market in which commodities are sold for cash and immediate delivery takes place.

See: Commodities

Spousal IRA
An individual retirement account (IRA) opened in the name of a nonworking spouse. A married couple that establishes such an IRA may contribute up to $2,250 between two IRAs as long as neither account exceeds a contribution of $2,000. If both spouses were employed, they could each contribute up to $2,000 for a combined total of $4,000.

See: IRA

Spread
1: The difference between a security's bid and asked price.

See: Asked Price

2: The difference between a new issue's public offering price and the proceeds received by the issuer--commonly know as the "underlying spread".

See: Gross Spread; Initial Public Offering; New Issue; Public Offering Price

Spread Option
The simultaneous purchase and sale of options of the same type and of the same class. For example, an investor may purchase an XYZ September 50 call and sell an XYZ September 40 call.

See: Bear Spread; Bull Spread; Class Of Option; Credit Spread; Debit Spread; Options; Option Spread; Spread; Spread Position

Spread Position
The existence of a spread option in an account, i.e. a long and short position in options of the same class and type.

See: Class Of Option; Long Position; Options; Option Spread; Short Position; Spread Option

Squeeze
A situation that occurs when the price of a security increases dramatically, thus pressuring short sellers to cover their short positions in order to avoid greater losses. The covering of short positions serves to raise the price of the security even more, thus increasing the losses of short sellers who have still not covered their short positions.

See: Close A Position; Selling Short; Short Interest Theory; Short Position