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secondary market A market that provides for the purchase or sale of previously owned securities (not an IPO). Most securities trading is done in the secondary market. |
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Securities and Exchange Commission (SEC) The primary federal regulatory agency of the securities industry. |
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Securities Industry Association (SIA) The principal trade association and lobbying group for broker/dealers. |
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Securities Investor Protection Corporation (SIPC) A nonprofit membership corporation established by Congress that insures securities and cash in customer accounts up to $500,000$100,000 of which may be in cashagainst a brokerage bankruptcy. |
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security An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government, or other organization, that offers evidence of debt or equity. |
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SelectNet Instituted in conjunction with SOES by the SEC, SelectNet is an electronic means of showing Nasdaq orders to all market makers. Order execution is entirely at the discretion of the market maker. |
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selling short Selling a security and then borrowing the security for delivery with the intent of replacing the security at a lower price. Short sales can be executed only through a brokerage margin account. |
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short sale See selling short. |
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Sixth Market The electronic trading of securities by the self-directed investor. |
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size The number of stock shares available at the bid and ask prices. |
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small cap Securities with a capitalization of less than $250 million. |
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Small Order Execution System (SOES) An NASD program through which over-the-counter orders for no more than 1,000 shares of a qualified issues can be automatically matched and executed to the best available price. |
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special cash account See cash account. |
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specialist A stock exchange member who serves to make a market for certain securities, maintaining an inventory of those securities and standing ready to buy and sell shares as necessary to maintain an orderly market for those shares. |
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specialist's book See book. |
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speculation Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains. See also prediction. |
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spread The difference between the best bid and best offer of a given security. |
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Standard & Poor's 500 Index (S&P 500) A market-value weighted index of 500 blue-chip stocks, considered to be the benchmark of the overall United States stock market. Each stock is "capitalization weighted," ensuring that each company's influence on the index performance is directly proportional to its relative market value. |
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