CAC 40 Index
A broad-based index of 40 common stocks on the Paris Bourse.
C & F
“Cost and Freight” paid to a point of destination and included in the price quoted.
Cost, insurance and freight paid to a point of destination and included in the price quoted.
The sale of an option with a nearby expiration against the purchase of an option with the same strike price, but a more distant expiration. The loss is limited to the net premium paid, while the maximum profit possible depends on the time value of the distant option when the nearby expires. The strategy takes advantage of time value differentials during periods of relatively flat prices.
The period at market opening or closing during which futures contract prices are established by auction.
The date on which and after which selected issues of Treasury bonds can be redeemed before maturity.
A loan which may be terminated or “called” at any time by the lender. The loan is then immediately payable, with any accrued interest, by the borrower to the lender. These loans are used to finance purchases of securities and exclude personal loans extended by banks to its customers.
A contract that entitles the buyer/taker to buy a fixed quantity of a commodity at a stipulated basis or striking price at any time up to the expiration of the option. The buyer pays a premium to the seller/grantor for this contract. A call option is bought with the expectation of a rise in prices. See Put Option .
The amount a call option costs.
The degree of security that an investor has against a bond being redeemed. Practically, the number of years between today and the call date.
An exchange regulation under which an official bid price for a cash commodity is competitively established at the close of each day’s trading. It holds until the next opening of the exchange.
Another term for “exercised” when the option is a call. The writer of a call must deliver the indicated underlying commodity when the option is exercised or called.
Client buys a call and sells a call on the same security but with different expiration dates, different exercise prices, or both.
A securities feature that allows the issuer to retire the issue when desired. Should the issue be called, the issuer usually pays a premium.
Treasury bonds that can be redeemed by Uncle Sam five years before maturity.
The amount of money an individual or business has available.
A trading profit. Trading gains that occur in one year or less are short-term capital gains; those that occur in periods longer than one year are long-term capital gains. Short-term and long-term capital gains are treated differently for tax purposes.
Capital Gains Distribution
Payments to mutual fund shareholders of profits from the sale of securities in a fund’s portfolio. Capital gains distributions (if any) are usually made annually.
A trading loss. Losses are long- or short-term as are gains. See Capital Gain.
The common and preferred stock of a company.
The total dollar value of all common stock, preferred stock, and bonds issued by a corporation.
This market brings together all the providers and users of capital, all the financial products, like stocks and bonds which make the transfer of capital possible, and all the people and organizations which support the process.
A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index.
Effecting commodity or security transactions shortly prior to an option’s expiration date by depressing or preventing a rise in the price of the commodity or security so that previously written call options will expire worthless and the premium received therefrom will be protected.
An option with an established profit cap or cap price.
A member of a commodity exchange, usually a futures commission merchant, through whom another broker or customer elects to clear all or part of its trades.
Cost of storing a physical commodity or holding a financial instrument over a period of time. Includes insurance, storage, and interest on the invested funds as well as other incidental costs. It is a carrying charge market when there are higher futures prices for each successive contract maturity. If the carrying charge is adequate to reimburse the holder, it is called a “full charge”.Also see Negative Carry, Positive Carry and Contango.
The cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery months. When futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. A full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date
The interest expense on a debit balance created by establishing a position.
The portion of existing supplies remaining from a prior production period
Cash (CDs, Savings Accounts, Treasury Bills):
These investments provide safety of principal and scheduled returns (if held to maturity) and are ideal for short-term objectives and liquidity needs. Because of their relatively low after-tax returns, they are susceptible to inflation risk for longer term investment needs.
A customer account in which all securities purchased must be paid for in full.
Referring to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered.
The physical or actual commodity as distinguished from the futures contract. Sometimes called Spot Commodity or Actuals.
Cash commodity/cash market
The actual or physical commodity. The market in which the physical commodity is traded, as opposed to the futures market, where contracts for future delivery of the physical commodity are traded. See also Actuals
A sales agreement for either immediate or future delivery of the actual product.
Dividends that corporations pay on a per-share basis to stockholders from their earnings.
Amount of total payments, interest and occasionally principal received as current income from Treasury and agency securities.
A settlement on the same day as the trade date.
A market in which goods are purchased either immediately for cash, as in a cash and carry contract, or where they are contracted for presently, with delivery occurring at the time of payment. All terms of the contract are negotiated between the buyer and seller.
The market for the cash commodity (as contrasted to a futures contract), taking the form of: (1) an organized, self-regulated central market (e.g., a commodity exchange); (2) a decentralized over-the-counter market; or (3) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.
The cost of a good or service when purchased for cash. In commodity trading, the cash price is the cost of buying the physical commodity on the current day in the spot market, rather than buying contracts in the futures market
The price in the marketplace for actual cash or spot commodities to be delivered via customary market channels
A method of settling certain futures or option contracts whereby the seller (or short) pays the buyer (or long) the cash value of the commodity traded according to a procedure specified in the contract. Instead of having the actuals delivered, cash is transferred upon settlement
Brokerage firm department that is responsible for receiving and delivering securities and money to and from other firms and clients.
See Chicago Board Options Exchange.
See Commodity Credit Corporation .
See Chicago Board of Trade.
See Certificate of Deposit.
See Commodity Exchange Authority.
A body established by a national government to regulate currency and monetary policy on a national and international level. In Indonesia it is the Bank of Indonesia. In the United States it is the Federal Reserve Board and in the United Kingdom it is the Bank of England.
The physical document evidencing ownership (a share of stock) or debt (a bond).
Certificate of Deposit (CD)
A negotiable certificate that evidences a time deposit of funds with a bank.
Certificated or Certified Stocks
Stocks of a commodity that have been inspected and found to be of a quality deliverable against futures contracts, stored at the delivery points designated as regular or acceptable for delivery by the commodity exchange. In grain called stocks in deliverable position. See Deliverable Stocks.
Stocks of a physical commodity that have been inspected by the exchange and found to be acceptable for delivery on a futures contract. They are stored at designated delivery points.
Cancel Former Order.
See Commodity Futures Trading Commission.
The difference between the current price and the price of the previous day of a security.
A clearing member of both the Mid-America Commodity Exchange and another futures exchange who, for a fee, will assume the opposite side of a transaction on the MCE by taking a spread position between the MCE and another futures exchange which trades an identical, but larger, contract. Through this service, the changer provides liquidity for the MCE and an economical mechanism for arbitrage between the two markets.
When technicians analyze the futures markets, they employ graphs and charts to plot the price movements, volume, open interest, or other statistical indicators of price movement. See also Technical analysis and Bar chart.
Technical trader who reacts to signals read from graphs of price movements
Colloquialism implying that a commodity is underpriced.
Usually refers to the selection of bonds deliverable against the expiring bond futures contract.
Chicago Board Options Exchange (CBOE)
Listed option trading was originated by this marketplace on April 26, 1973.
Chicago Board of Trade (CBT)
A major commodity exchange located 141 East Jackson Boulevard, Chicago IL.
Chicago Mercantile Exchange (CME)
The second largest futures exchange in the United States. Originally formed in 1874 as the Chicago Produce Exchange, the “Chicago Merc” was primarily a perishable agricultural products market (butter, eggs, poultry, etc.). The name was changed in 1919, and since then the CME has been an innovator in the industry. The CME trades financial futures, options, and stock index futures contracts. The CME is the largest exchange for futures contracts in live commodities, foreign currencies, and Eurodollars. Foreign currencies contracts traded include: German Mark, Canadian Dollar, French Franc, Swiss Franc, Mexican Peso, British Pound, Australian Dollar, and Japanese Yen. Futures contracts on the S&P 500, Nikkei 250, Major Market Index, and S&P 100 Stock Indexes and options on many of the their futures contracts are also traded at the CME. The CME is located at 30 S. Wacker Dr., Chicago, IL 60606.
An option which is transacted at the present but which at some prespecified future date is chosen to be either a put or a call option.
Excessive trading of an account by broker with control of the account for the purpose of generating commissions while disregarding the interests of the customer.
A system of trading halts and price limits on equities and derivative markets designed to provide a cooling-off period during large, intraday market declines. The first known use of the term circuit breaker in this context was in the Report of the Presidential Task Force on Market Mechanisms (January 1988), which recommended that circuit breakers he adopted following the market break of October 1987.
Options of the same type – all calls or all puts on the same security.
Class of Options
Option contracts of the same type (call or put), style and underlying security.
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily mark-to-market basis for its clearing member.
The procedure through which the clearing house or association becomes buyer to each seller of a futures contract, and seller to each buyer, and assumes responsibility for protecting buyers and sellers from financial loss by assuring performance on each contract
A central reception and distribution center operated for its members who are made up of various brokerage firms. Many offer automated systems that expedite comparison procedures. Among these are NSCC (National Securities Clearing Corp.) and OCC (Options Clearing Corporation).
An adjunct to, or division of, a commodity exchange through which transactions executed on the floor of the exchange are settled. Also charged with assuring the proper conduct of the exchange’s delivery procedures and the adequate financing of the trading.
Clearing House Comparison (CHC)
A form used to submit trades to NSCC that have missed the normal entry methods. Such trades enter the system on the third business day of the trade cycle.
Financial safeguards to ensure that clearing members (usually companies or corporations) perform on their customers’ open futures and options contracts. Clearing margins are distinct from customer margins that individual buyers and sellers of futures and options contracts are required to deposit with brokers. See Customer Margin.
A member of the Clearing House or Association. All trades of a non-clearing member must be registered and eventually settled through a clearing member.
See Settlement Price.
A strategy for arranging bonds so that they all mature in the same year.
The period at the end of the trading Session officially designated by the exchange during which all transactions are considered made “at the close “.
Closed End Fund
A fund whose offering of shares is closed. That is, once the initial offering is completed, the fund stops offering its shares. The value of the shares is then determined by supply and demand, rather than by calculation of net asset value.
Closed-end Investment Company
This is a company which uses its capital to invest in other companies. Shares in a closed-end investment company are bought and sold on the stock market and the company’s capital remains relatively unchanged.
A transaction to eliminate a short position.
A transaction in which the seller’s intention is to reduce or eliminate a long position in a given series of options
Closing Price (or Range)
The price (or price range) recorded in trading that takes place in the final moments of a day’s trade that are officially designated as the “close “.
Liquidating an existing long or short futures or option position with an equal and opposite transaction. Also known as Offset.
A range of prices at which buy and sell transactions took place during the market close.
The transaction executed to close an option contract. The holder would sell to close while the writer would buy to close.
An asset pledged to support a loan. The loan value of marginable securities; generally used to finance the writing of uncovered options.
Collateral Trust Bond
A debt instrument issued by one corporation and backed by the securities of another corporation.
A position long or short different types of options on the same stock with different strike prices and/or expiration dates. Any position involving both put and call options that is not a straddle.
In listed options trading, an order to simultaneously buy a call and sell a put or to buy a put and sell a call on the same underlying security. Also called a Combo Order.
A letter filed with the applicable securities commissions by a company’s auditor when submitting unsigned financial statements for use in a prospectus. The letter says that the final format of the statements should not be materially different from those attached to the letter. The letter is required because the auditor does not sign the report until the final prospectus is prepared for distribution. The signing is done after the securities commissions have reviewed the prospectus and any required changes have been made.
An entity involved in the production, processing, or merchandising of a commodity.
Commercial Grain Stocks
Domestic grain in store in public and private elevators at important markets and grain afloat in vessels or barges in harbors of lakes and seaboard ports.
A short-term debt instrument issued by corporations. Its rate of interest is set at issuance and can be realized only if held to maturity.
The amount charged by a firm on an agency transaction.
Commission House Broker
A floor broker who is employed by a brokerage house to execute orders on the exchange floor for the firm and its customers.
See Open Interest.
An article of commerce or a product that can be used for commerce. In a narrow sense, products traded on an authorized commodity exchange. The types of commodities include agricultural products, metals, petroleum, foreign currencies, and financial instruments and index, to name a few.
Commodity Credit Corporation
A government-owned corporation established in 1933 to assist American agriculture. Major operations include price support programs, foreign sales, and export credit programs for agricultural commodities.
Commodity Exchange Authority
A regulatory agency of the U.S. Department of Agriculture established to administer the Commodity Exchange Act prior to 1975; the forerunner of the Commodity Futures Trading Commission
Commodity Exchange Commission
A commission consisting of the Secretary of Agriculture, Secretary of Commerce, and the Attorney General, charged with responsibility for administering the Commodity Exchange Act prior to 1975.
Commodity Futures Trading Commission (CFTC)
The Federal regulatory agency established by the CFTC Act of 1974 to administer the Commodity Exchange Act.
An enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts or commodity options.
Commodity Pool Operator (CPO)
Individuals or firms in businesses similar to investment trusts or syndicates that solicit or accept funds, securities or property for the purpose of trading commodity futures contracts or commodity options.
Commodity Price Index
Index or average, which may be weighted, of selected commodity prices, intended to be representative of the markets in general or a specific subset of commodities (for example, grains or livestock).
Commodity Trading Advisor (CTA)
Individuals or firms that, for pay, issue analyses or reports concerning commodities, including the advisability of trading in commodity futures or options.
A bond in which payment to the investor is dependent on the price level of such commodities as crude oil, gold, or silver at maturity
These funds invest in commodities and commodity futures and options. They are extremely volatile and should be considered speculative investments, although some investors use these funds for inflation hedges.
A security, issued in shares, that represents ownership of a corporation. Common stockholders may vote for the management and receive dividends after all other obligations of the corporation are satisfied.
Company and Industry Risk
Market valuations of companies that have publicly traded securities are based upon expectations of the company’s and its industry’s future performance. As these expectations change over time, market values will adjust accordingly.
The process by which two contra brokerage firms in a trade agree to the terms of the transaction. Comparison can be either through a clearing corporation or on a trade-for-trade basis (that is, ex the clearing corporation).
A method of purchasing new issues of Treasury bills, notes, and bonds in which the investor specifies the yield, and accordingly the price, he or she requires to purchase the security.
Computerized Trading System:
A Jakarta Futures Exchange computerized surveillance program that pinpoints in any trade the traders, the contract, the quantity, the price, and time of execution to the nearest minute.
The sale or purchase of 2 options with consecutive exercise prices, together with the sale or purchase of 1 option with an immediately lower exercise price and 1 option with an immediately higher exercise price.
(1) A market situation in which shorts attempting to cover their positions are unable to find an adequate supply of contracts provided by longs willing to liquidate or by new sellers willing to enter the market, except at sharply higher prices;
(2) in technical analysis, a period of time characterized by repetitious and limited price fluctuations.
A company directly or indirectly operating in a variety of industries, usually unrelated to each other. Conglomerates often acquire outside companies through the exchange of their own shares for the shares of the majority owners of the outside companies.
A trade notice, issued to customers of brokerage firms, that serves as written notice of the trade, giving price, security description, settlement money, trade and settlement dates, plus other pertinent information.
Consent to Loan Agreement
An agreement margin customers must sign to authorize the brokerage firm to lend the customer’s securities to itself or other firms.
The average of analysts recommendations for a single entity. As many brokers have different ratings systems, their recommendations must be standardized so that a consensus can be calculated. The I/B/E/S ratings are calculated using a standard set of recommendations, maintained by I/B/E/S, each with an assigned numeric value:
•1. Strong Buy
Each recommendation received from the analysts is mapped to one of the I/B/E/S standard ratings. Assigning a numeric value to the broker text enables I/B/E/S to calculate a consensus recommendation. This consensus recommendation appears as the mean (average) of the assigned values.
The money value of a transaction (number of shares multiplied by the price) before adding commission.
A shipment made by a producer or dealer to an agent elsewhere with the understanding that the commodities in question will be cared for or sold at the highest obtainable price. Title to the merchandise shipped on consignment rests with the shipper until the goods are disposed of according to agreement
Securities such as savings accounts and money market funds that do not fluctuate in price.
Consumer Price Index (CPI)
A measure of price changes in consumer goods and services. This index is used to identify periods of economic inflation or deflation.
Market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery month; the opposite of “backwardation”.
An order which can be executed only if another event occurs; i.e. “sell Oct 45 call 7.25 with stock 52 or lower”.
(l) A term of references describing a unit of trading for a commodity future or option; (2) An agreement to buy or sell a specified commodity, detailing the amount and grade of the product and the date on which the contract will mature and become deliverable.
Those grades of a commodity which have been officially approved by an exchange as deliverable in settlement of a futures contract.
(1) A board of trade or exchange designated by the Commodity Futures Trading Commission to trade futures or options under the Commodity Exchange Act; (2) Sometimes the futures contract itself (e.g., corn is a contract market).
See Delivery Month
The actual amount of a commodity represented in a contract.
A type of accumulation plan in which an investor in mutual funds makes a firm commitment to invest a given amount of money over a given time.
A director, officer or other affiliate of the issuer or a stockholder who owns at least 10% of any class of outstanding stock.
Securities owned by one of those parties mentioned in Control Person
Any account for which trading is directed by someone other than the owner. Also called a Managed Account or a Discretionary Account.
The tendency for prices of physicals and futures to approach one another, usually during the delivery month. Also called a “narrowing of the basis “.
When trading options on futures contracts, a position created by selling a call option, buying a put option, and buying the underlying futures contract, where the options have the same strike price and the same expiration.
A riskless transaction in which the arbitrageur buys the underlying security, buys a put, and sells a call. The options have the same terms.
A factor used to equate the price of T-bond and T-note futures contracts with the various cash T-bonds and T-notes eligible for delivery. This factor is based on the relationship of the cash-instrument coupon to the required 8 percent deliverable grade of a futures contract as well as taking into account the cash instrument’s maturity or call.
Convertible Issue (Bond)
A securities feature that permits the issue holder to convert to another issue, usually common stock. This privilege can be used only once. The preferred stock or bond holder can convert from that issue to another, but not back.
Convertible Preferred Stock
A preferred stock that may be converted into common stock of the same company at specific prices or rates.
A security that is convertible into another security. Generally, a convertible bond or convertible preferred stock is convertible into the underlying stock of the same corporation. The rate at which the shares of the bond or preferred stock are convertible into the common is called the conversion ratio.
As it applies to the Treasury sector, a stripped Treasury zero that converts into a current income obligation five years before maturity.
The period, usually 20 days, between the filing of the registration statement on a new issue with the SEC and the effective date of the offering.
An account in which the individuals may act on behalf of the partnership as a whole.
(1) To corner is to secure such relative control of a commodity or security that its price can be manipulated;
(2) In the extreme situation, obtaining contracts requiring delivery of more commodities or securities than are available for delivery.
See Feed Ratio
A business organization under the law with certain rights and responsibilities in which the worth is divided into shares of stock.
A document stating that the corporation’s board of directors has authorized a particular individual to act on behalf of the corporation. This document is necessary when the corporation opens a cash or margin account.
A sudden decline in the price of a security after a period of market strength.
Cost of Tender
Total of various charges incurred when a commodity is certified and delivered on a futures contract.
In technical analysis, the method by which a trader takes a position contrary to the current market direction in anticipation of a change in that direction.
(1) On Bearer Stocks, the detachable part of the certificate exchangeable for dividends.
(2) Denotes the rate of interest on a fixed interest security – a 10% coupon pays interest of 10% a year on the nominal value of the stock.
Coupon (Coupon Rate)
A fixed dollar amount of interest payable per annum, stated as a percentage of principal value, usually payable in semiannual installments.
Also called nominal yield. A bond’s coupon payment divided by par value.
The total net profit a company has available for distribution as dividend, divided by the amount actually paid gives the number of times that the dividend is covered. To buy back as a closing transaction an option that was initially written.
A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put.
A call option that is sold against stock owned by the writer of the call.
Covered Call Option Writing
A strategy in which one sells call options while simultaneously owning an equivalent position in the underlying security or strategy in which one sells put options and simultaneously is short an equivalent position in the underlying security.
A put option that is sold by the owner of a put of the same class with an equal or longer expiration date and an equal or higher exercise price.
Covered Put Write
A strategy in which one sells put options and simultaneously is short an equal number of shares of the underlying security.
An option strategy in which one call and one put with the same strike price and expiration are written against 100 shares of the underlying stock. In actuality, this is not a “covered” strategy because asignment on the short put would require purchase of stock on margin. This method is also known as a covered combination.
Covered Straddle Write
The term used to describe the strategy in which an investor owns the underlying security and also writes a straddle on that security. This is not really a covered position.
Money received in an account. A credit transaction is one in which the net sale proceeds are larger than the net buy proceeds (cost), thereby bringing money into the account.
Outlines the conditions of credit arrangement between the broker and customer concerning a margin account.
The funds available to a client in a cash or margin account. In a short sale, this balance represents the customer’s liability.
This risk usually relates to bond investments and refers to the financial soundness of the firm which issued the bonds. The higher the credit rating, the lower the expected return from interest payments because of the very high likelihood of receiving interest and principal back. (This helps most of us sleep well at night!) The lower the credit rating, the higher the bond return needs to be to attract investors, and the more uncertainty involved in collecting both interest and principal. For firms with high credit risk, and especially for bond issues in default, the principal value of the bonds can fluctuate greatly based on perceived changes in the firm’s ability to repay the bondholders.
The difference in value between 2 options, where the value of the short position exceeds the value of the long position.
Crop (Marketing) Year
The time span from harvest to harvest for agricultural commodities. The crop marketing year varies slightly with each ag commodity, but it tends to begin at harvest and end before the next year’s harvest, e.g., the marketing year for soybeans begins September 1 and ends August 31. The futures contract month of November represents the first major new-crop marketing month, and the contract month of July represents the last major old-crop marketing month for soybeans.
Reports compiled by the U.S. Department of Agriculture on various ag commodities that are released throughout the year. Information in the reports includes estimates on planted acreage, yield, and expected production, as well as comparison of production from previous years.
Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets follow similar price trends (e.g., using soybean meal futures to hedge fish meal).
The current exchange rate between differing currencies.
The purchase of soybean futures and the simultaneous sale of soybean oil and meal futures. See Reverse Crush.
This means “with dividend.” Buyers of shares quoted cum dividend are entitled to an upcoming already-declared dividend.
This means “with rights.” Buyers of shares quoted cum rights are entitled to forthcoming rights.
A preferred stock feature that entitles the holder to the later payment of dividends that were not paid when due. The dividends are, in this sense, “cumulative.” The dividends accumulate and must be paid (along with present dividends) before common stockholders may receive any dividends.
Cash and assets such as accounts receivable and inventories, which in the normal course of business can be converted into cash within a year. Current assets are found on the company’s balance sheet.
Money owed to the company and due to be paid within a year, such as accounts payable. Current liabilities are found on the company’s balance sheet.
Current Ratio or Working Capital Ratio
Current assets of a business divided by current liabilities, thus measuring how much the value of current assets exceeds its liabilities. This is one of the tests to determine how much cash a company has on hand to cover its current liabilities.
Cash-in-hand payments received from interest and dividends.
The number of years until a bond matures, regardless of its original maturity when issued.
Current Return or Yield
The annual income from an investment expressed as a percentage of the investment’s current value. On stock, this is calculated by dividing yearly dividends by the market price of the security. On bonds, this is calculated by dividing yearly interest by current price. For example, if the income is $50 a year on an investment with a value of $1,000, the current yield is 5%.
Investments traded in foreign markets or which pay interest or dividends in foreign currencies entail the risk of declines in the currency’s value relative to the U.S. dollar. Some investment managers attempt to manage this risk with various hedging techniques. These are not consistently effective, but diversification into many major currencies can help limit this risk.
A bond’s coupon payment divided by its market price.
CUSIP (The Committee on Uniform Security Identification Procedure) –
An inter-industry security coding service. Each type of security has its own unique CUSIP number.
The person or institution responsible for protecting the property of another.
Customer (Account) Statement
Sometimes referred to as month-end statement. This is a statement of the customer’s positions and activity. It must be sent out quarterly, but if there is monthly activity in the account, it is sent out monthly.
Within the futures industry, financial guarantees required of both buyers and sellers of futures contracts and sellers of options contracts to ensure fulfilling of contract obligations. FCMs are responsible for overseeing customer margin accounts. Margins are determined on the basis of market risk and contract value. Also referred to as performance-bond margin. See Clearing Margin.
The expiration dates applicable to various classes of options. There are three cycles: January/April/July/October, February/May/August/November, and March/June/September/ December.
Stock in an industry that is particularly sensitive to swings in economic conditions, such as mining or forestry.