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...
What is a Stock Market Crash? A stock market crash refers to a drastic, often unforeseen, drop in the prices of stocks in the stock market. The sudden drop in stock prices may be influenced by economic conditions, catastrophic event(s), or speculative elements that sweep across the market. Most flash crashes are usually short bursts...
What is the Stock Exchange Daily Official List (SEDOL)? The stock exchange daily official list (SEDOL) is a seven-digit code used to identify all securities listed and trading on the United Kingdom securities market. Companies and issuers use SEDOL to identify assets, such as investment trusts, insurance-based securities, and other common stock forms. SEDOL is...
What is a Stock Exchange-Traded Fund (ETF)? A stock exchange-traded fund (ETF) is a listed investment product that captures a basket of assets that often tracks a popular stock index’s performance. As with a financial asset, an ETF is a fund that is traded at a market-determined price and allows an investor to trade shares...
What is a Call Premium? A call premium refers to the amount above par value an investor receives when the debt issuer redeems the security earlier than its maturity date. If a security is redeemed before it reaches maturity, the owner of the security loses the incremental profits that would’ve been generated. The call premium...