Stocks and Shares
Abbreviation used to uniquely identify a publicly traded company's stock.
What is a Ticker Symbol?
An account that allows investors to borrow money from a broker to purchase securities.
What is a Margin Account?
A stock market index that tracks 500 of the largest companies listed on stock exchanges in the U.S.
What is the S&P 500?
A market condition where prices are rising or are expected to rise.
What is a Bull Market?
A financial contract that gives the holder the right, but not the obligation, to buy a stock at a specific price before a certain date.
What is a Call option?
Nickname for shares of large, well-established, and financially sound companies.
What are Blue Chip stocks
This type of call will occur when a customer uses DTBP and holds overnight.
What is a Regulation T call?
A stock market index that includes 30 significant publicly traded companies in the U.S.
What is the Dow Jones?
The practice of selling a security that the seller does not own, with the hope of buying it back at a lower price.
What is Short Selling?
The process by which the seller of an option is obligated to fulfill the terms of the contract, either by buying or selling the underlying asset at the strike price, after the option holder decides to exercise their option.
What is an assignment?
Payments made to shareholders from a company's profits.
What are Dividends?
This call occurs when a customer opens and closes a position intraday when NAV is below 25k and flagged as a PDT account.
What is a Day Trade call?
A valuation ratio calculated by dividing a company's current share price by its earnings per share.
What is P/E Ratio?
A type of stop order that moves with the market price to lock in gains or limit losses, adjusting automatically in favorable conditions but remaining fixed if the price moves against the investor.
What is a trailing stop?
The price at which an option can be exercised.
What is the strike price?
A method to measure a company's total value based on its share price and number of outstanding shares
What is Market Cap?
Financial assets that can be used as collateral in a margin account for borrowing funds to purchase additional securities.
What are marginable securities?
A statistical measure of the average price of a security over a specific period of time.
What is Moving Average?
An order placed to buy or sell a stock once it reaches a specific price
What is a Limit Order?
The cost of purchasing an option, paid upfront to the seller.
What is Premium?
The process when a company first sells its shares to the public
What is an IPO?
ONBP is based on the lesser of these two values.
What is SMA and Margin Excess?
A measure of market risk and investors' fear or uncertainty, often associated with the S&P 500 index.
What is the Volatility Index (VIX)?
An order to automatically sell a stock at market when it falls to a certain price to limit losses.
What is a Stop Loss order?
Max gain and loss on a short call.
What is premium and unlimited?