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Saitori

Saitori members of the Tokyo Stock Exchange function as middlemen in transactions between regular members. Saitori members cannot trade for their own account, nor can they accept orders from members of the public.

SAPIB

Sociedad Anónima Promotora de Inversión Bursátil (Stock Investment Promoting Corporation) - A type of Mexican company which, once registered, has a three year transition period before it is required to comply with the full regulatory regime governing public companies. The shares of a SAPIB may only be bought and traded by certain institutional and qualified investors.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002, was signed into law by U.S. President George W. Bush and became effective on July 30, 2002.The Act contains sweeping reforms for issuers of publicly traded securities, auditors, corporate board members, and lawyers. It adopts tough new provisions intended to deter and punish corporate and accounting fraud and corruption, threatening severe penalties for wrongdoers, and protecting the interests of workers and shareholders.

Scrip issue

See Capitalisation issue

SEAQ

An electronic system for displaying market-makers' quotations in UK quotations admitted to the London Stock Exchange. SEAQ forms the interface between the market-makers and their customers allowing the entry and display of bid and ask prices on the SEAQ system.

SEAQ International

The London Stock Exchange's electronic price quotations system for non-UK equities, similar to SEAQ.

SEATS

A London Stock Exchange service which supports the trading of listed UK equities in which turnover is insufficient for the market making system.

SEC

The Securities and Exchange Commission, established by Congress to protect investors in securities transactions.

Second Marché

Second Market of Euronext Paris. This market is chiefly intended for medium-sized firms.

Secondary market

Trading in a new issue, either OTC or on an exchange, immediately following its original issuance.

Secondary offering

A registered offering of a large block of a security that has been previously issued to the public. The blocks being offered may have been held by large investors or institutions, and proceeds of the sale go to those holders, not the issuing company. Also called secondary distribution.

Securities analyst

An individual who does investment research and makes recommendations to buy, sell, or hold. Most analysts specialize in a single industry or business sector.

Securitised derivative

Instruments that derive their value from another security (the underlying security), such as a share, share price index, currency or bond.

Security

Generic name for a stock or share. Stocks are fixed-interest securities and shares are the rest.

SEDOL code

The stock code used to identify all securities issued in the UK or Eire. The SEDOL code, which is the basis of the ISIN code for UK securities, consists of a 7-digit number allocated by the master file service of the London Stock Exchange.

Self-regulatory organisation (SRO)

In the UK a recognised controlling body which regulates a specified class of investment business.

Seller/grantor

Also known as the option writer. The seller of an option is subject to a potential obligation if the buyer chooses to exercise the option.

SEQUAL

The London Stock Exchange trade confirmation service.

Serial expiration

Options on the same underlying futures contract which expire in more than one month.

Series

All options of the same class which share a common strike price.

Settlement date

The date by which an executed order must be settled by the transference of securities and funds between buyer and seller.

Settlement price

The official closing price for a future set by the clearing house at the end of each trading day.

Share price index

An index measuring movements in the prices of shares but not their dividends; as opposed to a total return index, which measures both price movements and dividend income.

Shares

See Security

Shares outstanding

The number of shares that have been issued that are actually in the hands of investors.

Short interest

The total number of shares of a security sold short.

Short sale

The sale of a security or commodities futures not owned by the seller at the time of the trade. Short sales are usually made in anticipation of a decline in the price.

SICOVAM code

A 5-digit code allocated to French securities.

Single stock futures

Futures contracts on individual stocks.

Sinking fund

The repayment of debt by an issuer at stated regular intervals through purchases in the open market or drawings by lot.

Size

(i) The number of shares or bonds which are available for sale.
(ii) A term used when there are a large number of shares for sale.

Société des Bourses Françaises (SBF)

This body applies regulations drawn up by the Conseil des Bourses de Valeurs to market operations of the French stock exchanges. Its activities include registering trades and listings and keeping investors informed of transactions.

Sociétés de Bourse

Member firms on the French Bourses. Sociétés de Bourse, previously known as Agents de Change, are empowered to conduct trade in securities and financial instruments, manage private and institutional portfolios, and set up and manage investment funds. Member firms are also entitled to deal as principals.

Specialist

A member of a US stock exchange who holds an exclusive franchise to trade in one or more securities on the exchange floor. The specialist in return is obliged to maintain a fair and orderly market in the stocks in which he or she is registered.

Split

The division of the outstanding shares of a corporation usually into a larger number of shares.

Spot commodity

The actual physical commodity, as opposed to the futures contract.

Spot month

The contract month closest to delivery or expiry.

Spot price

The price at which the spot or cash commodity is currently trading in the spot market.

Spread

(i) The difference between the bid and ask price of a security.
(ii) The difference between the price of two related futures contracts.
iii) For options, transactions involving two or more option series on the same underlying security.

Stag

One who applies for a new issue in the hope of being able to sell the shares alloted to him/her at a profit as soon as dealing starts.

Stammaktie

German for ordinary share.

Stamp duty

In the UK, a tax levied on the purchase of shares.

Stillhalter option

Swiss form of covered warrant.

Straddle

The simultaneous purchase/sale of both call and put options for the same share, exercise/strike price and expiry date.

Strike price

Also called exercise price. The price at which an options holder can buy or sell the underlying instrument.

Strip

For futures, buying (selling) the strip involves the simultaneous purchase (sale) of contracts of 4 or 6 consecutive delivery months in the same futures contract. For options, a stock option contract made up of 2 puts and one call.

Subscription warrant

A type of security that entitles the holder to purchase a specified number of shares at a fixed price within a fixed- or perpetual-time period. The conversion price per share at which the warrants are exercised is adjusted in the event of a rights issue or a stock split.

Sukuk

Tradable asset-backed financial certificates, designed to be compliant with Shari'ah. Can be regarded as an Islamic equivalent of a bond.

SuperMontage

The next-generation electronic trading system in both order display and execution for Nasdaq securities, launched by The Nasdaq Stock Market in 2002.

Swap

A forward type of contractual agreement to exchange one type of cash flow or asset for another, according to predetermined rules.

Swiss certificate (schweizer zertifikat)

Original share certificate of a foreign company, mainly originating in the US, the UK or Canada, which is quoted on a Swiss Stock Exchange and is registered in the nominee name of a specified Swiss nominee endorsed in blank. For dividend payments or participation in corporate actions it must be stamped by the nominee company.

Swiss Index

The most relevant indices of SWX Swiss Exchange are: the Swiss Market Index (SMI) which comprises 20 blue chips, the SLI Swiss Leader Index (SLI), which comprises the 30 biggest stocks traded on the Swiss market and the Swiss Performance Index (SPI) which comprises all listed stocks except investment firms and companies with less than 20 percent free float.