Encyclo - TD Waterhouse - Investing glossary

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TD Waterhouse - Investing glossary
Category: Economy and Finance > Investing
Date & country: 24/11/2007, UK
Words: 137

Put Option
The right but not the obligation to sell at an agreed price at or within a stated future time.

Quote Vendors
Screen-based computer system providing instant information on prices of shares, foreign exchange and commodities.

Redemption Date
The date on which a security (usually a fixed interest stock) is due to be repaid by the issuer at its full face value. The year is included in the title of the security; the actual redemption date being that on which the last interest is due to be paid.

An organisation that takes responsibility for maintaining a company's share register.

Renounceable Documents
Temporary evidence of ownership, of which there are three main types:

Recognised Investment Exchange. An investment exchange which meets FSA requirements for recognition.

Rights Issue
An invitation to existing shareholders to purchase additional shares in the company.

Regulatory News Service. A service operated by the Exchange, in its role as competent authority for listing, which ensures that price-sensitive information from listed companies is collected and then disseminated to all RNS subscribers at the same time. Return to the top of the page

The SEAQ Automated Execution Facility. This enables small trades in UK shares to be carried out automatically at a computer terminal instead of over the telephone.

Scrip Issue
See Capitalisation Issue.

The Stock Exchange Automated Quotations system for UK securities. This is a continuously updated computer database containing price quotations and trade reports in UK securities. SEAQ carries the market makers' bids and offers for the UK securities and is part of the Exchange's Sequence programme.

SEAQ International
The Exchange's electronic price quotation system for non-UK equities. Similar to SEAQ, it is part of the Exchange's Sequence programme.

A service which supports the trading of listed UK equities in which turnover is insufficient for the market making system. It is distributed via a number of screen-based information services. It shows current orders, company information, historical trading activity for each stock and the sole market maker, where only one is registered. It is part o…

Secondary Market
Marketplace for trading in securities that are not new issues.

General name for stocks and shares of all types. In common usage, stocks are fixed interest securities and shares are the rest.

An integrated, reliable computer system developed by the Exchange to deliver a wider range of better quality trading and information services to market participants. The SEAQ, SEATS and SEAQ international trading service operate on the new system.

Stock Exchange Electronic Trading Service (See Order Book)

Once a deal has been made, the settlement process transfers stock from seller to buyer and arranges the corresponding movement of money between buyer and seller (see Talisman and Crest).

Settlement Day
Day on which bought stock is due for delivery to the buyer and the appropriate payment to the seller.

See Securities.

See Gilts or Gilt-Edged Securities.

Self Regulating Organisation. An organisation recognised by the FSA and responsible for monitoring the conduct of business by, and capital adequacy of investment firms.

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

Stamp Duty
A UK tax currently levied on the purchase of shares.

See Securities

The computerised settlement system used by the Exchange until April 1997, which acted as a central clearing house for transactions in equities (see CREST).

Tender Offer
In an offer by tender, buyers of shares specify the price at which they are willing to buy.

The PLUS Market
Formally known as OFEX, the PLUS Market is separate from the London Stock Exchange but authorised and recognised by the Financial Services Authority. The PLUS market provides a trading platform for primary and secondary equity market services.

The best buying and selling prices available from a market maker on SEAQ and SEAQ International in a given security at any one time.

Traded Options
Transferable options with the right to buy and sell a standardised amount of a security at a fixed price within a specified period.

A deal made on the Exchange or subject to the rules of the Exchange.

The form signed by the seller of a security authorising the company to remove his/her name from the register, and substitute that of the buyer.

An arrangement by which a company is guaranteed that an issue of shares will raise a given amount of cash. The underwriters undertake to subscribe for any of the issue not taken up by the public. They charge commission for this service.

Unit Trust
A portfolio of holdings in various companies, divided into units and managed by professionals.

A tradable security providing the holder with the right to buy specific shares at a set price on a future date.

White Knight
A company which rescues another company which is in financial difficulty, especially one which saves a company from an unwelcome take-over bid.

The return earned on an investment taking into account the annual income and its present capital value. There are a number of different types of yield, and in some cases different methods of calculating each type. Return to the top of the page