Resources Archive

Trade Execution

What is Trade Execution? Trade execution is when a buy or sell order gets fulfilled. In order for a trade to be executed, an investor who trades using a brokerage account would first submit a buy or sell order, which then gets sent to a broker. On behalf of the investor, the broker would then…

Eurocurrency

What is Eurocurrency? Eurocurrency is a currency that is deposited at a foreign bank outside of its home country. Contrary to its name, the term does not refer to euros that are deposited outside of Europe. It is a general term that applies to all currencies that are deposited anywhere outside of its local country….

Structured Note

What is a Structured Note? A structured note is a hybrid security that combines multiple payoffs from multiple securities, usually a bond and a derivative. The bond component makes up approximately 80% of the investment and provides principal protection to investors. The derivative component makes up the remaining 20% of the investment and provides upside…

Stratified Random Sampling

What is Stratified Random Sampling? Stratified random sampling is a sampling method in which a population group is divided into one or many distinct units – called strata – based on shared behaviors or characteristics. Stratification refers to the process of classifying sampling units of the population into homogeneous units. In stratified random sampling, any…

Strangle

What is Strangle? Strangle is an investment method in which an investor holds a call and a put option with the same maturity date, but has different strike prices. In a strangle strategy, a holder in effect, combines the features of both a call and a put option into a single trade, and the overall…

Straight Line Basis

What is the Straight Line Basis? The straight line basis is a method used to determine an asset’s rate of reduction in value over its useful lifespan. Other common methods used to calculate depreciation expenses of fixed assets are sum of year’s digits, double-declining balance, and units produced. Straight line basis is the simplest technique…

Straight-Through Processing (STP)

What is Straight-Through Processing (STP)? Straight-through processing (STP) is an automatic solution for seamless electronic transactions and interactions without manual intervention. STP is commonly used by financial institutions to reduce transaction time and stock markets to facilitate seamless initiation and settlement of securities without manual intervention. The straight-through processing’s infrastructure provides fully electronic and smooth…

Stop-Limit Order

What is a Stop-Limit Order? A stop-limit order is a tool that traders use to mitigate trade risks by specifying the highest or lowest price of stocks they are willing to accept. The trader starts by setting a stop price (order to buy or sell a stock once the price’s reached a specific point), and…

Store of Value

What is a Store of Value? A store of value is an asset, currency, or commodity that maintains its value over a long period. An item would be considered a store of value if its value is either stable or increases over time but doesn’t depreciate. If an item can be held and converted into…

Stock Symbol

What is a Stock Symbol (Ticker)? A stock symbol is a form of identification that is used to identify publicly-traded companies using a series of letters. Ticker symbols are often abbreviations utilizing a company’s name to describe a company’s stock. Different stock exchanges follow different conventions for allocating stock symbols. For example, securities listed on…

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