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Financial Education Center
Trading & Investing Basics
Financial Education Center
Trading and Investing Basics
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An account with two or more individuals acting as co–owners.
Joint Tenants with Rights of Survivorship (JTWROS)
A joint account which allows the remaining tenant(s) to retain the deceased tenant's interest in the account.
Tax–deferred retirement plan for a self–employed and unincorporated person or a person who has earned extra income aside from regular employment through personal services.
Last Sale Reporting
An electronic entry by NASD Members to The Nasdaq Stock Market of the price and the number of shares involved in a transaction in a Nasdaq security. The trade reported must be submitted to Nasdaq with 90 seconds of the execution of the trade.
A type of transfer that requires legal documentation in addition to the normal forms. Usually in the name of a deceased person, a trust, or other third party.
Letter of Renunciation
This applies to a rights issue and is the form attached to an Allotment Letter which is completed should the original holder wish to pass his entitlement to someone else or to renounce his rights absolutely.
The increment a stock moves in (this differs for each stock). Easily visible as the price difference between underlying bids or offers.
Any claim against the corporation, including accounts payable, salaries payable, and bonds.
In relation to dealing instructions, a restriction set on an order to buy or sell, specifying the minimum selling or maximum buying price.
Sets the highest price the customer is willing to pay for a buy order, or the lowest price the customer is willing to accept for a sell order. Buy orders may be executed at or below the limit price, but never higher. Sell orders may be executed at or above the limit price, but never lower.
Limited Tax Bond
A municipal bond whose ability to pay back principal and interest is based on special tax.
Limited Trading Authorization
An account in which the customer gives the power to buy and sell only in his account to another person.
(1) Closing out a position. (2) An action taken by the margin department when a client hasn't paid for a purchase.
The characteristic of a market that enables investors to buy and sell securities easily.
An option that trades on a national option exchange.
Securities that trade on a national exchange.
Stock that has qualified for trading on an exchange.
The sales charge on the purchase of the shares of some open–end mutual funds.
Mutual Fund that is sold for a sales charge by a brokerage firm or other sales representative. Such funds may be stock, bond or commodity funds, with conservative or aggressive objectives.
Loan Consent Agreement
An agreement whereby the customer gives the brokerage firm permission to lend his securities.
Loan Market Value
Value of securities in customer's account.
Stock bearing a fixed rate of interest. Unlike a Debenture, loan stocks may be unsecured.
The amount of money, expressed as a percentage of market value, that the customer may borrow from the firm.
(1) In a customer's account, securities that are either fully paid for (a cash account) or partially paid for (a margin account). (2) Any position on the firm's security records that has a debit balance.
Bonds that mature in more than ten years.
A gain on the sale of a capital asset where the holding period was twelve months or more and the profit was subject to the long term capital gains tax.
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