Business / Finance Glossary

Simple Linear Trend Model: A regression analysis between only two variables, one dependent and the other explanatory.

Simple Moving Average: An extrapolative statistical model that asserts that earnings have a base level and grow at a constant amount each period.

Simple Prospect: The mean, calculated at any time over a past period of fixed length.

Simple Rate Of Return: An investment opportunity in which only two outcomes are possible.

Simplified Employee Pension (SEP) Plan: The return from investments figured by dividing income plus capital gains by the amount of capital invested. The effect of compounding is not taken into account.

Simulation: A pension plan in which both the employee and the employer contribute to an individual retirement account. Also available to the self-employed.

Singapore International Monetary Exchange (SIMEX): The use of a mathematical model to imitate a situation many times in order to estimate the likelihood of various possible outcomes. See: Monte Carlo simulation.

Single Option: A leading futures and options exchange in Singapore.

Single-Country Fund: A single put option or call option, as opposed to a spread or straddle, which involves multiple puts and calls.

Single-Factor Model: A mutual fund that invests in individual countries outside the United States.

Single-Index Model: A model of security returns that acknowledges only one common factor. The single factor is usually the market return. See: Factor model.

Single-Payment Bond: A model of stock returns that decomposes influences on returns into a systematic factor, as measured by the return on the broad market index, and firm specific factors. Related: Market Model

Single-Premium Deferred Annuity (SPDA): A bond that makes only one payment of principal and interest.

Single-Premium Life Insurance: An IRA-like annuity into which an investor makes a lump-sum payment that is invested in either a fixed-return instrument or a variable-return portfolio, which is taxed only when distribution . . . View Full Definition

Single-State Municipal Bond Fund: A whole life insurance policy requiring one premium payment, which accrues cash value much more quickly than a policy paid in installments.

Sinker: A mutual fund investing only in government obligations within a single state, with state tax-free dividends, but taxed capital gains.

Sinking Fund: A bond with interest and principal payments coming from the proceeds of a sinking fund.

Sinking Fund Requirement: A fund to which money is added on a regular basis that is used to ensure investor confidence that promised payments will be made and that is used to redeem debt securities or preferred stock issues.

Sit Tight: A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.

Size: Directive from the trader to the customer to be patient, emphasizing that one's piece of business will be executed.

Size Out The Book: Refers to the magnitude of an offering, an order, or a trade. Large as in the size of an offering, the size of an order, or the size of a trade. Size is relative from market to market and se . . . View Full Definition

Skewed Distribution: Overt action to exclude a public bid or offer from participation in a print through trading a larger size in the book. Can never size out a market order. See: Priority, shut out the book.

Skewness: Probability distribution in which an unequal number of observations lie below (negative skew) or above (positive skew) the mean.

Skip-Day Settlement: Negative skewness means there is a substantial probability of a big negative return. Positive skewness means that there is a greater-than-normal probability of a big positive return.

Skip-Payment Privilege: Settling a trade one business day beyond what is normal.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226