Banking & Investment Theme 5 - Stock Trading

By: Dr. Nabil Chaiban

1 2 N T 3 4   5 6   O S O P Y R 7   8                 9                     P U M A R R Y A P U T M A R K E T M A K E R               A T R I E L A     10           R O S A N F L S                 V F H D A E O U 11                       12       13           A U C T I O N M A R K E T D L R W R I T E R                   L H R E L Y R S I       14               15             U E T E X E R C I S E P R I C E H E                   E M T H A E D E S               O E N Y L S E               16 N R I E D T T Z               E M C E O S E           Y B A C R   17                 18 19 O B U L L I S H K O L Q           N A C I U     20   21                 D N F L O T A T I O N S A 22           I A D U T R 23             24 25                     G E A R I N G U L O A D F U N D P E T               D N Y L O D E               E C S O N S R   26                           N V O T I N G T R U S T B E L             T V S O C Y           U E N U R     27                   R R Y I E L D C U R V E 28                                   H O S T I L E T A K E O V E R S I P       D T O 29                             R E D E M P T I O N F E E I R       U E T 30                           Z E R O M I N U S T I C K S

Across Hedging risk by buying the stock and buying a put on the same day. A brokerage or bank that maintains a firm bid and ask price in a security by being ready to buy or sell at publicly quoted prices, maintaining liquidity for that security. A market where buyers and sellers enter bids and offers simultaneously, such as the New York Stock Exchange. The seller of an option contract. The stated price per share at which the underlying asset may be traded between the holder and writer of the options contract. Also called strike price. A term used to describe rising security prices. A company's shares offered on the market for the first time. A company's debt expressed as a percentage of its equity capital. A mutual fund with shares sold at a price including a sales charge, usually purchased through a salesperson. The deposit of shares, along with transfer of voting rights to a trustee for a specific period of time. This is a graph showing the yields for different bond maturities. A takeover against the will of the target company's management and board members. The fee applied when assets are withdrawn from a mutual fund before a specified time period, usually 60 to 90 days after the initial investment in the fund. A stock trade at a price that is equal to the preceding trade but lower than the last different price.

Down The interest rate stated on the face of the bond. Debt obligations issued by the U.S. Department of Treasury, so interest and principal is guaranteed by the U.S. Government. An option is out-of-the-money if the price of the underlying security is below the strike price of a call option, or above that of a put. The holder would suffer an immediate loss if he was to exercise the right and purchase or sale the underlying security. An option strategy involving a simultaneous long or short positions of both put and call option contracts, on the same underlying security and same series designation. Stock that represents ownership in the issuing corporation, with a specific dividend which accumulates if not paid. In the case of bankruptcy, it has a claim on assets ahead of common stockholders but after debentures. Wholesale quote sheets for corporate bonds used by dealers. The face value of a bond. A bond that matures within five years. A method of evaluating securities by relying on market data, such as price charts and volume to predict future market trends. The person or business receiving a payment. Bonds that do not pay interest periodically. Instead these bonds are purchased at a discount and held to maturity, when all compounded interest is paid and the bondholder collects the face value of the bond. Securities that are traded on a national exchange. An unaudited financial report submitted every quarter to the SEC by public companies, containing the company's financials and other relevant information. A quantity of securities smaller than 100 shares, which is considered the standard unit of trading. The terms and agreement of a corporate bond, usually on the face of the bond certificate. A short put option position in which the writer of the put does not have a short position or the underlying security of the option contract.