See: Moody's Investors Service; Rating; Standard & Poor's 500 Index

Standard & Poor's 500 Index
A composite index that tracks 500 industrial, transportation, public utility, and financial stocks. The selection of stocks included in the index is determined by Standard & Poor's Corporation, which also publishes the index.

See: Index; Standard & Poor's Corporation

Statutory Voting
A method of voting whereby a shareholder receives one vote for each share and may cast his votes for each of the directorships. A shareholder, for example, who owns 1000 shares of a corporation that is electing three directors, can cast 1000 votes for each of the three candidates.

See: Cumulative Voting; Voting Right; Voting Stock

Stock
Ownership of a corporation as evidenced by shares which are a claim on the corporation's earnings and assets.

See: Stock Certificate

Stock Ahead
A condition that occurs when an order is not executed because there are other orders awaiting execution, which were entered earlier, at the same price. If two orders are entered for the same price at the same time, the order for the larger number of shares takes precedence.

See: Orders

Stock Buyback
A corporation's purchase of its own shares, usually to discourage a takeover attempt.

See: Takeover

Stock Certificate
A document evidencing ownership in a corporation.

See: Stock

Stock Dividend
A dividend that is paid in securities, rather than cash. The additional shares may be of the issuing company, or of a subsidiary.

See: Cash Dividend; Dividend; Dividend Reinvestment Plan

Stock Exchange
An organized marketplace where members gather to trade securities. Members may act either as agents for customers, or as principals for their own accounts.

See: Member Firm

Stockholder
An individual who owns one or more shares of a corporation's stock, whether common or preferred stock. Stockholders may earn dividends and stockholders who have common stock have voting rights with regard to matters that affect the corporation.

See: Common Stock; Corporation; Dividend; Preferred Stock; Shareholder; Voting Right

Stockholder Of Record
A stockholder whose name is registered on the books of the issuing corporation as owning the shares as of a particular date. Dividends and other distributions are made to stockholders of record.

See: Dividend; Record Date

Stockholders' Equity
The total equity ownership of a corporation by its shareholders, consisting of preferred stock, common stock, retained earnings, and capital surplus. It is the difference between a company's total assets and total liabilities.

See: Asset; Common Stock; Equity; Liability; Preferred Stock; Retained Earnings; Shareholder's Equity

Stock Power
A form used in the transfer of registered securities from one owner to another. A stock power replicates the assignment form on the back of the stock certificate, but it is separated from the certificate. Hence, a stock power is sometimes called an "assignment separate from certificate". Although both achieve the same goal, a stock power has a safety advantage in being separate.

See: Assignment; Bond Power; Certificate; Registered Security

Stock 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. Splits usually must be voted on by directors and approved by shareholders.

See: Equity; Outstanding Stock; Reverse Split; Shareholder's Equity; Split

Stock Symbols
A unique code, using all letters, given to all securities trading on the NYSE, AMEX or NASDAQ. The symbols identify the corporation and facilitates trading and ticker reporting.

See: AMEX; NASDAQ; NYSE; Order Ticket; Ticker Tape

Stop Limit Order
An order that becomes a limit order after a specified price (the "stop" price) has been reached. A stop limit order on a sale is placed below the current market (usually to limit losses or protect unrealized gains). A stop limit order on a purchase is placed above the current market (usually to protect short positions).

For listed securities, stop limit orders become limit orders when the stock trades at or beyond the stop price and will execute at the limit price or better if that price can be attained. Sell-stop limit orders on OTC securities become limit orders when the stock is bid at or lower than the specified price. Buy-stop limit orders on OTC securities become limit orders when the stock is offered at or higher than the specified price. Stop limit orders are not available for Bulletin Board securities.

See: Limit Order; Listed Security; Orders; OTC; Stop Order

Stop Order
An order that becomes a market order when a specified price (the "stop" price) has been reached. A stop order on a sale is placed below the current market (usually to limit losses or protect unrealized gains). A stop order on a purchase is placed above the current market (usually to protect short positions). Stop orders are not always executed at the stop price.

For listed securities, stop orders become market orders when the stock trades at or beyond the specified price. Sell-stop orders on OTC securities become market orders when the stock is bid at or lower than the specified price. Buy-stop orders on OTC securities become market orders when the stock is offered at or higher than the specified price. Stop orders are not available for Bulletin Board securities.

See: Listed Security; Market Order; Orders; OTC; Paper Profit (Loss); Round Lot; Stop Limit Order

Stopped Stock
A term used by a specialist who guarantees that a public order to buy or sell will be executed at the best bid or offer price in his book, unless it can be executed at a better price within a certain time period. This allows brokers to possibly obtain a better price for their clients without the fear of missing the market (if buying--the security rises, if selling--the security drops). For example, a broker with a market order to buy is stopped at 22 by a specialist. This means that the broker will not pay more than 22 for the stock, but may be able to buy at a better price.

See: Asked Price; Market Order; Missing The Market; Specialist

Street
Slang for "Wall Street". It is used to refer to the investing community as a whole.

See: Wall Street

Street Name
Said of securities held in the name of the broker-dealer rather than in the name of the client. The client remains the beneficial owner. All dividends that would otherwise be mailed directly from the company to the stockholder are credited to the client's account or forwarded as the client directs. Corporate reports and proxy statements are forwarded to the customer.

See: Beneficial Owner; Nominee; Proxy Statement

Strike Price
The predetermined exercise price of a put or call option--also called "striking price".

See: Call Option; Exercise; Exercise Price; Options; Put Option

Subject
Term used by a dealer giving bids and/or offers that must be reviewed before a final decision to buy or sell can be made.

See: Dealer; Firm Quote; Inside Quote; Nominal Quotation

Subscription Right
A certificate that evidences a shareholder's privilege to buy additional shares of new securities in proportion to the number of shares already owned. A company, when raising more funds by issuing new securities, may issue rights to its shareholders to give them the chance to buy additional shares before the general public. Because rights usually allow the stockholder to buy below the current market price, they ordinarily have a value of their own and are actively traded. Most rights are valid for a relatively short period. Failure to exercise or sell rights may result in monetary loss.

See: Ex-Rights; New Issue; Preemptive Right; Sweetener

Subscription Warrant
A certificate that gives a shareholder the right to purchase a security at a specified price within a predetermined time period or perpetually. At the issuance of the warrant, the specified price is usually higher than its current market value. Corporations issue warrants directly and they are sometimes offered along with a security as incentive to buy. Warrants are transferable and are traded on major stock exchanges. The abbreviation "WT" is used in newspaper stock listings.

See: Ex-Warrants; Perpetual Warrant; Subscription Right; Sweetener

Support Level
The lower level of a security's trading range where buying pressure tends to bid up the price of the security. That is, its price stops falling because there is more demand for the security than there is supply. If, however, the security's price falls below its support level, analysts consider this to be very bearish.

See: Bear; Oversold; Resistance Level

Survivorship Life Insurance
(also titled 'Second-to-Die' Insurance) This policy guarantees two lives, but will only pay out the terms of the policy upon the death of the second insured.

See: Term Life Insurance; Whole Life Insurance; Universal Life Insurance

Suspended Trading
A halt in the trading of a particular security that is usually temporary. This may occur because of an imbalance of buy and sell orders or because of a significant news announcement.

See: Delayed Opening; Trading Halt

Sweetener
A feature, such as being convertible or having a right or warrant attached, that is added to security offerings to make it more attractive to investors.

See: Convertible Securities; Kicker; Right; Warrant

Switching
In mutual funds, the movement of assets from one fund to another. This is usually done within a family of funds, but can be done between different fund families. Within a no load family, there usually is no charge or a nominal transaction fee. This is also usually true for a load family as long as the fund being switched into has the same sales charge (or less) as the one that the investor already owns. When switching to a mutual fund that belongs to a different family of funds, if the new fund is a no load--there is no charge, and if the new fund is a load fund--it is sales charge of the new fund.

An investor will switch mutual funds when their investment objectives change or because of market conditions.

See: Family Of Funds; Load Mutual Fund; Mutual Fund; No Load Mutual Fund

Syndicate Group
See Underwriting Group.

Syndicate Manager
See Managing Underwriter.

Systematic Risk
Risk that is common to all securities of the same class (stocks, bonds, options)--also known as "market risk". This risk cannot be eliminated by diversifying one's portfolio.

See: Diversification; Market Risk; Risk