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Glossary

Stock

Financial Term

Stock, also known as equity or share, refers to a small portion of ownership in a company. When a company decides to raise capital, it can issue stocks to the public, allowing investors to purchase these shares and become part owners of the company. The ownership of stocks entitles the shareholder to a portion of the company*s profits, as well as the ability to vote in certain company decisions.

In the financial industry, stocks are traded on stock exchanges such as the New York Stock Exchange (NYSE) or the Nasdaq. The price of a stock is determined by the supply and demand of the market, where buyers and sellers trade stocks based on their beliefs about the company*s prospects and performance.

Investors can use stocks as a way to diversify their portfolio and potentially earn a return on their investment through capital gains or dividends. However, there is also a risk involved as the value of a stock can also decrease due to factors such as a poor company performance or broader economic conditions.

Overall, stocks play a crucial role in the financial industry as a means of raising capital for companies and providing investors with opportunities to participate in the growth of businesses.


More Glossary Terms Beginning with S
  • S&P 500 Index
    is the Standard & Poors 500 Composite Stock Price Index, a widely recognized, unmanaged index of common stock prices. You may not invest directly in the S&P 500 Index, and, unlike the Fund, benchmark indices do not incur fees or expenses.   Indices
    Financial Term Letter: S
  • S&P GSCI Commodity Index
    is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures that is diversified across the spectrum of commodities. The returns are calculated on a fully-collateralized basis with full reinvestment. The combination of these attributes provides investors with a representative and realistic picture of realizable returns attainable in the c
    Financial Term Letter: S
  • S-Curve Method
    A mathematical function which depicts an initial slow change, followed by a rapid change and then ending in a slow change again. This results in an "S" shaped line when depicted graphically. The actuarial application of these curves fit the reported data to date for a particular cohort of claims to an S-curve to project future activity for that cohort.
    Insurance Term Letter: S
  • Sales per Employee
    A ratio that measures companys productivity by dividing cumulative Sales of the past twelve months, by the number of employees. Sales Per Employee displays how much a single employee contributes over the twelve months period to the total sales of the company. Sales Per Employee Formula = (Sales trailing twelve months / Employee)
    Fundamental Analysis Letter: S
  • Salt
    also known as sodium chloride, has many end uses. Salt is used as feedstock for chlorine and caustic soda manufacture; these two inorganic chemicals are used to make many consumer-related end-use products, such as polyvinyl chloride (PVC) plastic made from chlorine and paper-pulping chemicals manufactured from caustic soda. Chemical Manufacturing Industry
    Manufacturing Term Letter: S
  • Salvage
    The amount of money an insurer recovers through the sale of property transferred to the insurer as a result of a loss payment.
    Insurance Term Letter: S
  • Sampling
    Selecting a fractional but representative part of a mineral deposit for analysis.
    Manufacturing Term Letter: S
  • Scrap Iron and Steel
    Iron and steel scrap is a vital raw material for the production of new steel and cast-iron products. Steel scrap recycling conserves raw materials, energy, and landfill space. Iron & Steel Industry Operating Statistics
    Manufacturing Term Letter: S
  • Second Injury Fund
    The employer of an injured, impaired worker is responsible only for the workers compensation benefit for the most recent injury; the second-injury fund would cover the cost of any additional benefits for aggravation of a prior condition. The cost is shared by the insurance industry and self-insureds, funded through assessments to insurance companies and self-insureds based on either premiums or lo
    Insurance Term Letter: S
  • Second-line
    Treatment following first-line treatment; used if the initial treatment is unsuccessful or if the disease re-occurs.
    Health Care Term Letter: S
  • Securitization
    A process whereby loans or other receivables are packaged, underwritten and sold to investors. In a typical transaction, assets are sold to a special purpose entity, which purchases the assets with cash raised through issuance of beneficial interests (usually debt instruments) to third-party investors. Whether or not credit risk associated with the securitized assets is retained by the seller depe
    Financial Term Letter: S
  • Securitization Income
    Includes non-credit provision components of the net gains or losses from securitization activities; changes in fair value of the interest-only strip; excess spread related to securitized cardmember loans; and servicing income, net of related discounts or fees. Excess spread, which is recognized as earned, is the net cash flow from interest and fee collections allocated to the third-party investors
    Financial Term Letter: S