Broadcast SelectNet: This is an order that is seen by all Market Makers, and the system only allows one Market Maker to fill the order, you can't get double filled. See SelectNet.
Buy: Purchase of a security.
Buy to Close: You "close" a short option position when you buy it back.
Buy to Open: You "open" a long position when you buy an option.
C
Call Option: The right to buy 100 shares of the underlying security at a fixed price before a specified expiration date. Call buyers hope the price of the stock will rise. Call sellers hope the price will stay the same or go down.
Candlestick Chart: The candlestick chart is formed from the open, high, low, and close price for a specific time period. The color of the candlestick is determined by the relationship between the open and the close. If the close is higher than the open, a green stick is formed. If the close is lower than the open, a red stick is formed. The thin line above and below the stick represents the high and the low for the period and is referred to as the "wick."
Capital Appreciation: The growth of the earnings on an investment's principal.
Capital Gain: Arises when an investment is sold at a higher price than originally paid. In a mutual fund, capital gains are created when the fund buys and sells underlying securities at a premium over purchase price. These gains are then distributed to unitholders at least annually. Unitholders can also earn capital gains by redeeming their fund shares at higher prices than they originally paid.
Certificate of Deposit: Debt instruments issued by banks and savings and loans. Maturities range from overnight to many years. Certificates of Deposit are issued at par and pay fixed interest at intervals or maturity. Can be brokered through Broker Dealer.
Charting: The set of techniques used in technical analysis in which charts are used to plot price movements.
Common Stock: Securities that represent an ownership interest in a corporation.
Compounding: The computation of interest paid using the principal plus the previously earned interest.
Crossing the Market: Crossing the market occurs when the bid is higher than the lowest current offer or vice versa. Note: The NASDR prohibits investors from crossing the market intentionally.
Custodial Account: An account for the benefit of a minor with an adult as the custodian.
CyberXchange: CyberTrader's proprietary intelligent order routing method, which routes your order to the optimal counter party based on your predefined preferences.
D
Day (Only) Order: An order condition that causes your order to be canceled at the end of the current day's trading if the specified limits are not be met.
Defined Benefit Plan: A company retirement plan in which you expect to receive a fixed amount on a regular basis from your employer, i.e. a pension. The employer is responsible for investing.
Defined Contribution Plan: A company retirement plan such as a 401(k) or 403 (b), in which the employee elects to defer salary into the plan and directs the investments of that deferral.
Dilution: Effect on earnings per share and book value per share if all convertible securities were converted or all warrants or stock options were exercised.
Diversification: The allocation of assets among various types of investments.
Dividend Amount: Value of last quarterly cash dividend or the number of shares an investor receives for each share owned in a stock dividend.
Dividend Reinvestment: Dividends that are reinvested in the security that generated them.
Do Not Reduce (DNR): You may add this special condition on a limit order to buy, a stop order to sell, or on a stop-limit order to sell. This condition specifies that you do not want your limit or stop price
reduced when the stock goes ex-dividend and the market price of the stock is reduced by the amount of the dividend.
Dollar Cost Averaging: Buying securities at scheduled intervals at the same dollar amount.
Dow Jones Industrial Average (DJIA): Measure of the performance of the collection of 30 "blue-chip"
stocks traded on NYSE, considered the leaders of the market.
E
Earnings Per Share (EPS): Portion of a company's profit allocated to each outstanding share of common stock.
Earnings Per Share Date: Date of the last earnings announcement.
Electronic Communication Network (ECN): An electronic portal where by buy and sell orders are electronically matched and or posted. (Island [ISLD], Instinet [INCA], Attain [ATTN], Bloomberg [BTRD], Spear Leeds [REDI], Brass Utility [BRUT], Archipelago [ARCA], NexTrade [NTRD], MarketXT [MKXT].
Electronic Funds Transfer: Transferring funds between accounts and firms electronically.
Ex-Dividend Date: Date a stock split or dividend is reflected in the price of the security (if you buy a stock on the ex-dividend date, you are not entitled to the dividend); for splits, this is the trading day after the distribution is made.
F
Fiduciary: One is legally required to act in the best interest and trust of a beneficiary or minor.
Fill or Kill (FOK): An order condition that cancels an order if it cannot be filled immediately in its entirety. See All or None.
Fixed Income Securities: Debt securities or IOUs for borrowed money. They obligate the borrower to pay the owner interest during the term of the loan and to return the principal or face value, when the loan matures. A variety of institutions issue debt obligations including the U.S. government, state and local governments, publicly held companies, banks, and savings and loans.
G
Good Til Canceled (GTC): An order that remains open until it is either executed or expires.
H
High: The highest execution price of a trade that day, or on the last trading day.
I
Immediate or Cancel (IOC): An order condition that requires all or part of an order to be executed immediately. The part of the order that cannot be executed is automatically canceled.
Inside Market: The highest bid and lowest ask prices among all competing market makers in a NASDAQ security.
Invisible (INV): An order that is deemed "Invisible" or "Subscriber only" will not display on the ISLD order book. These orders will be matched, if possible, but an invisible order has less priority than other orders. If an order with a restriction (such as INV) is entered before an unrestricted order at the same price; the unrestricted order will execute first.
IRA: An Individual Retirement Account in which some or all of the contribution may be deductible from current taxes, depending on the individual's adjusted gross income and coverage by an employer sponsored retirement plan.
L
Last Split Date: The last date on which the shares of a security were increased or decreased by splitting.
Last Trade: The price at which the last trade was executed; after market close, this is the closing price.
Last Trade Date and Time: The date and time the security was last traded.
Level I: Displays the current best Bid and Ask prices, volume, close price from the previous trading day,