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samurai bond
Bond issued by a foreign borrower in Japan; denominated in yen, it can be bought by non-residents of Japan
savings and loan (S&L)
US equivalent of a UK building society, providing funds for house purchase. Otherwise known as a thrift.
scrip issue
Also known as capitalisation issue or bonus issue. Issue of shares to shareholders without payment; a way for a company to transfer money from reserves to permanent capital.
secondary market
The buying and selling of existing stocks, shares, bonds, etc. New securities are placed in the primary market.
securities
Certificates or bearer warrants for stock, shares or bonds.
Securities and Exchange Commission (SEC)
Regulator of the US securities industry.
Securities and Futures Authority (SFA)
Regulatory authority for securities and futures brokers in the UK. It handles complaints against stockbrokers. It was formed through a merger in 1991 of the Securities Association and the Association of Futures Brokers and Dealers.
Securities and Investment Board (SIB)
UK regulatory body set up in 1986 to oversee the investment business.
settlement price
Average price at the close of the days trading. It is used to set the next days fluctuation limits and to determinr margin calls on futures contracts. At the London Metal Exchange the settlement is the morning official offer price.
share capital
Common shares outstanding.
share price discounts
Investment trust shares normally sell at a discount to the value of the underlying assets attributable to each share. When times are tough these discounts may widen, so the share price falls faster than the underlying assets.
short
Investors are short of a share or commodity if they have sold shares they do not possess, in the hope of buying them later at a lower price. See also long.
short term debt
A current liability that represents the portion of debt payable within one year, including any current portion of long term debt.
SIC codes and definitions
The 1987 US Standard Industrial Classification (SIC) system provides a standardised means of classifying business activities.
Smallcap index
Charts performance of the smaller quoted companies on an exchange.
special deposits
Proportion of a bank's assets that the Bank of England can require the bank to place on reserve with it.
spot market
Market in goods or securities for immediate delivery.
Special Drawing Right (SDR)
International reserve asset created by the IMF in 1969 and used by it for book-keeping purposes. The SDR currency basket consists of the weighted currencies of the G5 countries (US, Germany, UK, France and Japan).
split-capital trusts
Investment trusts with more than one class of capital such as income and growth shares.
spread
Yield spread represents the differential between the yields on two comparable bonds in different markets. If the spread tightens, this means the differential has narrowed, and if it widens, it has got bigger. A bid/offer spread is the difference between the price at which a market maker or dealer is prepared to sell a share, bond, commodity or any other tradable instrument, and the one at which s/he is prepared to buy.
stag
Someone who subscribes for a new issue in the hope of selling at a profit immediately dealing starts.
stock split
Division of shares into a larger number of shares of lower unit value. Proportional ownership of the shares remains the same.
stockbroker
Person or firm undertaking to arrange the sale or purchase of shares or other securities for an institution or member of the public.
stocklending
Legal and common practice whereby pension funds lend out their assets for a few days or weeks to other financial insti- tutions as a way of boosting their income.
stop order
Order for a broker to buy or sell shares or commodities when the price reaches a certain level.
swap
Exchange of a stream of payments over time agreed by two counterparties; normally used to transform market exposure from one interest rate base to another or one currency to another. See also currency swap
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