Glossary - Paninsekuritas.co.id

Glossary

A	Acquisition One company taking control of another by purchasing a majority or all of the target company's outstanding shares. An acquisition can be unfriendly when an offer is far in excess of the market value of the shares, which is meant to induce current stockholders into selling.
	Annual Report A publication that is issued yearly by all publicly held corporations and freely available to all shareholders. It reveals the company's assets, liabilities, revenues, expenses, and earnings for the past year, along with other financial data.

B	Bear An investor who sells a security in the hope of buying it back at a lower price, as he thinks the market will go down. A bear market is a falling market in which bears would prosper.
	Bond Debt securities issued by governments and companies as a means of raising capital which generally entitle the holder to a fixed-rate of interest during their life and repayment of the amount of the bond at maturity.
	Bull An investor who buys a security in the hope of selling it at a higher price, as he thinks the market will go up. A bull market is a rising market in which bulls would prosper.

C	Capital Gain Profit earned on the sale of securities, either through dividends or by selling the securities at a higher price than they originally cost.
	Close-End Investment Fund A closed-end fund is one of three basic types of professionally managed investment companies along with open-end funds (more commonly known as mutual funds), and unit investment trusts. Closed-end funds have a fixed number of shares outstanding. Following an initial public offering (IPO), those shares trade throughout the day on an exchange between investors. Share prices are determined by the forces of supply and demand and can be more or less than the fund's net asset value (NAV).
	Collateral Securities or other property pledged by a borrower to secure repayment of a loan.
	Convertible Bonds A debt issue that may be exchanged, or converted, by the owner for a fixed number of common shares, or other securities, usually of the same company, in accordance with the terms of the issue.
	Corporate Bond A debt security issued by a corporation.
	Current Assets Assets of a company that are reasonably expected to be realized in cash, or sold, or consumed during one year.
	Current Liabilities Money owed and payable by a company, usually within one year.
	Current Yield The interest paid on the bond as a percent of the current market price.

D	Dividend The payment designated by the Board of Directors to be distributed pro rata among the shares out-standing. For preferred shares, the dividend is usually a fixed amount. For common shares, the dividend varies with the fortunes of the company and the amount of cash on hand, and may be omitted if business is poor or if the directors determine to withhold earnings to invest in plants and equipment. Sometimes a company will pay a dividend out of past earnings even if it is not currently operating at a profit.

E	Equity Ownership in a company, whereas bonds represent debt, stocks represent equity.

F	Face Value The value of a bond that appears on the face of the bond, unless the value is otherwise specified by the issuing company. Face value is ordinarily the amount the issuing company promises to pay at maturity. Face value is not an indication of market value.

G	Good Delivery Certain basic qualifications must be met before a security sold on the Exchange may be delivered. The security must be in proper form to comply with the contract of sale and to transfer title to the purchaser.
	Growth Stock Shares of a company known for a history of rapid earnings growth. Most growth stocks do not pay dividends because management reinvests earnings to feed the growth.

H	Hedge A hedge is typically accomplished by making approximately offsetting transactions that will largely eliminate one or more types of risk. Hedging Investors can use derivatives and covered warrants to hedge investments. For instance, if an investor owns a particular stock, he or she can neutralize the impact of an impending fall in price by buying a put option, selling futures or buying a put warrant.

I	IPO - Initial Public Offering An issue of new stock by a once private company to transform itself into a publicly held one. IPOs are usually done to raise cash for growing young companies that need larger sources of capital than the private sector can provide. The new shares are sold to one or more investment banks, which then sell them to the public.

J	JATS Jakarta Automated Trading System.
	JONEC Jakarta Stock Exchange Open Network Environment Client.
	JONES Jakarta Stock Exchange Open Network Environment Server.
	JOTS Jakarta Option Trading System.

L	Liabilities All claims against the assets of a corporation. Liabilities can include accounts, wages and salaries payable; dividends declared; accrued taxes; and fixed or long-term debt such as bonds and bank loans.
	Liquidity Depth of market to absorb buy and sell interest of even large orders at prices appropriate to supply and demand. The market must also adapt quickly to new information and incorporate that information into the stock's price. Liquidity is one of the most important characteristics of a good market.

M	Margin An account with a broker where a client is able to purchase securities on credit after the margin has been deposited.
	Maturity The date on which the borrower repays the principal amount of the obligation, with the last interest payment, to lenders.
	Market Order An order to buy or sell at the best price currently available on the Trading Floor.
	Market Price The last reported price at which the stock or bond sold, or the current quote.
	Market Value The current resale value of a security. The market value of an issue is easily computed as the closing price multiplied by the shares outstanding.
	Money Laundering The process of disguising money obtained from criminal activity.
	Mutual Fund A collective investment scheme in the US that pools investors’ money to be invested in stocks, bonds and other securities.

O	Overbought Refers to a stock that has risen sharply in price or to the market as a whole after a period of vigorous buying which, it is sometimes said, has left prices "too high".

P	Primary Market The process by which a corporation's stock is issued for the first time. It is then sold to the public on the secondary market.
	Portfolio The collection of different investment instruments owned by one individual or institution. A portfolio can consist of any combination of stocks, bonds, derivatives and such.

R	Recession A period of no economic growth and high unemployment.
	Rights When a company wants to raise more funds by issuing additional securities, it may give its stockholders the opportunity, ahead of others, to buy the new securities in proportion to the number of shares each owns. The piece of paper evidencing this privilege is called a right. Because the additional stock is usually offered to stockholders below the current market price, rights ordinarily have a market value of their own and are actively traded.

S	Secondary Market When stocks or bonds are traded or resold, they are said to be sold on a secondary market. The majority of all securities transactions take place on a secondary market.
	Settlement The conclusion of a transaction in which parties pay for securities purchased and take delivery of securities sold.

T	Technical Research Analysis of the market and stocks based on supply and demand. The technician studies price movements, volume, trends and patterns, which are revealed by charting these factors, and attempts to assess the possible effects of current market action or future supply and demand for securities and individual issues.

U	Underlying The security one has the right to buy or sell according to the terms of an option contract.
	Underwriting An arrangement by which a company is guaranteed an issue of shares will raise a given amount of cash. Underwriters undertake to subscribe for any of the issue not taken up by the public. They charge commission for this service.

W	Warrants Securities giving the holder a right to subscribe to a share or a bond at a given price and from a certain date.