Stock Market Glossary - S
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S
Scalpers A person trading in the market who holds a position for a very short period of time.
Settlement Price Average price a contract trades at the open and then at the close from each trading day.
Spot Price The current price at which a particular commodity can be bought or sold.
Spread Difference between the bid and the ask prices of an asset.
Straddle Strategy used in options where the investor holds a position in both a call and put with the same strike price.
Strangle Strategy used in options where the investor holds a position in both a call and put with different prices.
Strike Price The stated price per share for which underlying stock may be traded at when the option is exercised.
Strip A strategy created by being long in one call and two put options with the exact same strike price.
Swap The exchange of one security for another to change the maturity or quality of issues.
Sell The process of trading an asset for money.
Selling Short When an investor borrows stock stock from a broker, sells it, and eventually buys it back on the market to return the borrowed shares to the broker. If the stock declines in price between the time the investor sells the shares and buys them back, a profit is realized.
Share Repurchase A companys plan to buy back shares of stock from its investors to decrease the number of shares outstanding.
Short Interest The total number of shares that have been sold short.
Short Sale A transaction where an investor sells borrowed stock, expecting the price to decline.
Spot Price The current price a security can be bought or sold at.
Stock Split The increase in a company's number of outstanding shares to decrease the share price. The total value of all the shares remains the same.
Stop-Limit Order An order given to buy or sell a stock if it reaches or goes below a certain price.
Stop-Loss Order An order given to buy or sell a stock if it reaches or goes below a certain price.
Stop Order An order to sell a stock when its price falls to a particular point to limit an investor's losses.
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