Primary Market
This three letter phrase for the first offering of a security to all investors.
What is an IPO (Initial Public offering)
The owner of a Put contract is said to have this outlook.
What is a bearish outlook?
A broker-dealer who stands ready to buy and sell a particular security.
What is a market maker?
This act regulates the secondary market, including the US exchanges and its participants.
What is the Securities Exchange Act of 1934?
Despite its unassuming name, there can be a lot of value in this, the most basic type of stock.
What is common stock?
Also referred to as underwriters, these companies are contracted by the issuer to bring the new issue to the market.
What are investment bankers
When the market value of a security is above the strike price of a call option for that security it is said to be this.
What is "in the money"?
A trade executed from a broker-dealers own account to sell to an investor.
(Bonus Points): What kind of fee is assessed to the investor?
What is position trading?
(Bonus Points): What is a Mark-Up?
This type of management company can be traded on the secondary market, and have a fixed number of shares.
What is a closed end investment company?
This feature allows an issuer to buy back shares of stock.
What is a callable feature?
This sinister word describes a group of broker dealers assembled to sell a new issue.
What is a syndicate?
The maximum loss a writer of an uncovered call can expect is this.
What is unlimited?
The spread between the best bid and best offer.
What is the inside market?
This type of company has a set termination date and a fixed number of units. It is known for not having any management fees.
What is a Unit Investment Trust?
Known and purchased more for income than growth, this type of stock usually doesn't have voting rights.
What is preferred stock?
Made by a publicly traded company, an offering of new securities that have been approved, but delayed for up to two years is referred to as this.
What is a shelf offering?
The break even of a put is found by doing this to the strike price and premium
What is subtracting the premium from the strike price?
Some securities trade on this exchange and are not required to meet the same reporting requirements as the NYSE or Nasdaq
What is the OTC Pink?
This investment company is in a continual primary offering, and therefore a prospectus is always required with sale.
What is an open ended investment company?
This type of stock guarantees that the owner will receive any missed dividends before dividends can be declared for the common stock holders.
What is cumulative preferred stock?
An underwriting contract where the underwriter acts as an agent and attempts to sell as many securities possible, but is not required to purchase unsold securities.
What is a best efforts contract?
The action taken after an investor first sells a put to exit without exercising the option.
What is a closing purchase?
Used by clients that have significant volumes of business, this type of Broker Dealer handles custody of securities and other services, using other broker dealers for execution.
What is a Prime broker dealer.
This is the acronym for the price at which an investor can purchase a share of a mutual fund.
What is the POP (Public Offering Price)
Often linked to T-Bill rates, this feature can change a dividend's value.
What is the adjustable rate feature?