STOCK MARKET GLOSSARY

A business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.

Stock Market Terms starting with - A

Abandonment

Controlling party giving up rights to property voluntarily.

Abandonment option

The option of terminating an investment earlier than originally planned.

ABC agreement

A contract between an employee and a brokerage firm outlining the rights of the firm purchasing an NYSE membership for that employee.

Ability to pay

Refers to the borrower's ability to make interest and principal payments on debts. See: Fixed charge coverage ratio.

In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values. In context of taxation, notion that tax rates should be determined according to income or wealth.

Abnormal returns

The component of the return that is not due to systematic influences (market-wide influences). In other words, abnormal returns are above those predicted by the market movement alone. Related: excess returns.

Stock Market Terms starting with - B

Baby bond

A bond with a par value of less than $1000.

Back away

In the context of general equities, to withdraw from a previously declared interest, indication, or transaction; broker-dealer's failure, as a market maker in a given security, to make good on a bid/offer for the minimum quantity.

Back fee

The fee paid on the extension date if the buyer wishes to continue the option.

Back months

In the context of futures and options trading, refers to the months of contracts with expiration dates farthest away. See farthest month.

Back office

Brokerage house clerical operations that support, but do not include, the trading of stocks and other securities. All written confirmation and settlement of trades, record keeping, and regulatory compliance happen in the back office.

Back on the shelf

In the context of general equities, permanently cancelled order/interest in a stock by a customer. See: Take a powder.

Back taxes

Due taxes that have not been paid on time.

Back up

(1) When bond yields rise and prices fall, the market is said to backup.
(2) An investor who swaps out of one security into another of shorter current maturity is said to back up.

Back on the shelf

In the context of general equities, permanently cancelled order/interest in a stock by a customer. See: Take a powder.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.

Stock Market Terms starting with - C

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Cabinet security

A stock or bond listed on a major exchange with low daily traded volume.

Cable

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 index

A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forward segment of the official list of the Paris Bourse.

Cage

A section of a brokerage firm used for receiving and disbursing funds.

Calendar

List of new issues scheduled to come to market shortly.

Calendar effect

Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

Calendar spread

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

Call

An option that gives the holder the right to buy the underlying futures contract.