| Term | Definition |
|---|---|
| S Corporation (S Subchapter) | A type of corporation that is not subject to corporate income tax |
| S&P 500 Index (Standard & Poor’s 500 Index) | A stock market index of 500 large companies |
| S&P 500 Dividend Aristocrats Index | A stock market index of companies that have increased dividends for 25 consecutive years |
| Safe Deposit Box | A secure box for storing valuables |
| Safe Harbors | Legal provisions that provide protection from liability |
| Safe Haven | An investment that is expected to hold its value during times of market turmoil |
| Sale | The exchange of goods or services for money |
| Sales and Purchase Agreement (SPA) | A contract for the sale of property |
| Sales Lead | A potential customer |
| Sales Tax | A tax on sales |
| Salvage Value | The value of an asset at the end of its useful life |
| Sampling | Selecting a subset of a population for analysis |
| Sampling Distribution | The distribution of a statistic from all possible samples |
| Sampling Errors | Errors that occur due to sampling |
| Samurai Bond | A bond issued in Japan by a foreign entity |
| Sarbanes-Oxley (SOX) Act of 2002 | A U.S. law related to corporate governance |
| Savings Account | A bank account that pays interest |
| Savings and Loan Crisis (S&L) Crisis | A financial crisis in the 1980s |
| Say’s Law of Markets | The theory that supply creates its own demand |
| Scalability | The ability to grow without increased costs |
| Scalping | A trading strategy that involves profiting from small price changes |
| Scarcity | The limited availability of resources |
| Scenario Analysis | A process of evaluating potential outcomes |
| Schedule 13D | A SEC filing required by investors who acquire more than 5% of a company’s stock |
| Schedule 13G | A SEC filing similar to Schedule 13D, but for passive investors |
| Schedule A | A tax form for itemized deductions |
| Schedule K-1 | A tax form for reporting income from a partnership or S corporation |
| Scope | The extent of something |
| Scrips | Certificates representing ownership in a company |
| Seasonality | Patterns that occur at certain times of the year |
| Seasonally Adjusted Annual Rate (SAAR) | A rate that has been adjusted for seasonal variations |
| SEC Form S-1 | A registration statement for a company’s initial public offering |
| SEC Yield | The yield on a mutual fund |
| Second World | A term used to describe communist countries |
| Secondary Market | The market for previously issued securities |
| 1035 Exchange | A tax-free exchange of annuity contracts |
| Section 1231 Property | Property used in a trade or business |
| Section 1245 | A tax provision related to depreciation recapture |
| Section 1250 | A tax provision related to depreciation recapture for real property |
| Sector | A group of similar companies |
| Sector Breakdown | The distribution of investments across different sectors |
| Secular | Long-term trend |
| Securities And Exchange Board of India (SEBI) | The regulator for the Indian securities market |
| Securities Act of 1933 | A U.S. law that regulates the issuance of securities |
| Securities and Exchange Commission (SEC) | The regulator for the U.S. securities market |
| Securities Exchange Act of 1934 | A U.S. law that regulates the trading of securities |
| Securities Lending | The practice of lending securities to other investors |
| Securitization | The process of pooling assets and creating securities backed by those assets |
| Security | A financial instrument representing ownership or debt |
| Security Market Line (SML) | A line that shows the relationship between risk and return |
| Seed Capital | The initial funding for a startup |
| Seigniorage | The profit made from issuing currency |
| Self-Directed IRA (SDIRA) | An IRA that allows for a wider range of investments |
| Self Employed Contributions Act (SECA) | A U.S. law related to self-employment taxes |
| Self-Employment | Working for oneself |
| Self-Regulatory Organization (SRO) | An organization that regulates its members |
| Sell in May and Go Away | A stock market adage |
| Sell-Side | The part of the financial industry that deals with selling securities |
| Seller Financing | Financing provided by the seller of a property |
| Selling, General, & Administrative Expense (SG&A) | Expenses related to selling, general, and administrative activities |
| Senior Bank Loan | A loan that has priority over other debt |
| Sensex | A stock market index in India |
| Sensitivity Analysis | A process of evaluating how changes in assumptions affect outcomes |
| Serial Correlations | Correlations between a time series and lagged values |
| Series I Bond | A U.S. savings bond that is indexed to inflation |
| Series 3 | A futures license |
| Series 6 | A mutual fund license |
| Series 7 | A general securities license |
| Series 9/10 | A supervisory license |
| Series 24 | A general securities principal license |
| Series 57 | A securities trader license |
| Series 63 | A uniform securities agent license |
| Series 65 | An investment advisor representative license |
| Series 66 | A combined Series 63 and Series 65 license |
| Series B Financing | A round of funding for a startup |
| Series EE Bond | A U.S. savings bond |
| Service Charge | A fee for services |
| Service Sector | The part of the economy that provides services |
| Severance Pay | Pay given to an employee who is terminated |
| Shadow Banking System | Financial institutions that are not subject to traditional bank regulation |
| Shadow Pricing | The value of a resource that is not traded in the market |
| Share Certificate | A document representing ownership in a company |
| Share Class | A type of stock with different rights and privileges |
| Share of Wallet (SOW) | The percentage of a customer’s spending that goes to a particular company |
| Share Repurchase | A company buying back its own shares |
| Shareholder | An owner of shares in a company |
| Shareholder Activist | A shareholder who seeks to influence a company’s policies |
| Shareholder Equity (SE) | The owners’ stake in a company |
| Shareholder Equity Ratio | A measure of a company’s financial leverage |
| Shareholder Value | The value of a company to its shareholders |
| Shareholder Value Added (SVA) | A measure of the value created for shareholders |
| Shareholders’ Agreement | An agreement among shareholders |
| Shares | Units of ownership in a company |
| Sharing Economy | An economy based on sharing resources |
| Sharpe Ratio | A measure of risk-adjusted return |
| Shell Corporation | A company that exists on paper only |
| Sherman Antitrust Act | A U.S. law that prohibits monopolies |
| Shooting Star | A candlestick pattern |
| Short (or Short Position) | A bet that an asset’s price will decline |
| Short Call | A bet that an asset’s price will decline |
| Short Covering | Buying back shares to close out a short position |
| Short Interest | The total number of shares that have been sold short |
| Short Interest Ratio | A measure of short selling activity |
| Short Put | A bet that an asset’s price will decline |
| Short Run | A period of time when some inputs are fixed |
| Short Sale | A sale of an asset that the seller does not own |
| Short Selling | The practice of selling borrowed assets |
| Short Squeeze | A rapid increase in the price of an asset due to short covering |
| Short-Term Debt | Debt that is due in less than one year |
| Short-Term Investments | Investments that are held for less than one year |
| Shortfall | A deficiency |
| Shrinkage | Loss of inventory due to theft or damage |
| Shutdown Points | The point at which a business should shut down |
| Signature Loan | A loan that does not require collateral |
| Silent Partner | A partner who does not participate in the management of the business |
| Silk Route | An ancient trade route |
| Silo Mentality | A lack of communication between departments |
| Simple Agreement for Future Tokens (SAFT) | A contract for future cryptocurrency tokens |
| Simple Interest | Interest calculated only on the principal |
| Simple Moving Average (SMA) | A technical indicator |
| Simple Random Sample | A type of sample |
| Simplified Employee Pension (SEP) | A type of retirement plan |
| Sinking Fund | A fund used to retire debt |
| Six Sigma | A quality management methodology |
| Skewness | A measure of the asymmetry of a distribution |
| Skin in the Game | Having a personal stake in the outcome |
| Slippage | The difference between the expected price of a trade and the actual price |
| Small and Mid-size Enterprise (SME) | A small or medium-sized business |
| Term | Definition |
|---|---|
| Small Business Administration (SBA) | A U.S. government agency that provides support to small businesses |
| Small Caps | Companies with a small market capitalization |
| Smart Beta | An investment strategy that uses quantitative factors |
| Smart Beta ETF | An exchange-traded fund that uses a smart beta strategy |
| Smart Contracts | Self-executing contracts on a blockchain |
| Smart Money | Experienced investors |
| Smoot-Hawley Tariff Act | A U.S. law that raised tariffs |
| Smurf | A person who launders money by making small deposits |
| Social Audits | Evaluations of a company’s social performance |
| Social Economics | The study of the relationship between economics and society |
| Social Enterprise | A business with social goals |
| Social Entrepreneur | A person who starts a social enterprise |
| Social Justice | Fairness in society |
| Social Media | Online platforms for communication |
| Social Networking | The use of social media to connect with others |
| Social Responsibility | A company’s obligation to society |
| Social Sciences | The study of human society |
| Social Security | A U.S. government program that provides benefits to retirees, survivors, and disabled individuals |
| Social Security Administration (SSA) | The U.S. government agency that administers Social Security |
| Social Security Number (SSN) | A U.S. identification number |
| Social Welfare System | Government programs that provide assistance to individuals |
| Socialism | An economic system where the government owns the means of production |
| Socially Responsible Investing (SRI) | Investing in companies that meet certain social criteria |
| Société Anonyme (S.A.) | A type of company in France and other countries |
| Soft Skills | Personal attributes that enable effective communication |
| Software-as-a-Service (SaaS) | Software that is delivered over the internet |
| Sole Proprietorship | A type of business organization with one owner |
| Solvency | The ability to meet long-term obligations |
| Solvency Ratio | A measure of solvency |
| Sortino Ratio | A measure of risk-adjusted return that penalizes downside risk |
| Sovereign Wealth Fund (SWF) | A government-owned investment fund |
| Special Drawing Rights (SDR) | An international reserve asset |
| Special Economic Zones (SEZ) | Areas with special economic regulations |
| Special Power of Attorney | A power of attorney for a specific purpose |
| Special Purpose Acquisition Company (SPAC) | A company formed to acquire an existing company |
| Special Purpose Vehicle (SPV) | A legal entity created for a specific purpose |
| Special Warranty Deed | A type of deed |
| Specialization | Focusing on a particular task |
| Speculation | Investing in risky assets |
| Speculator | A person who engages in speculation |
| Spiders (SPDR) | Exchange-traded funds |
| Spillover Effect | The impact of an event on other areas |
| Spinning Top Candlestick | A candlestick pattern |
| Spinoff | A separation of a business unit into a separate company |
| Spoofing | A type of market manipulation |
| Spot Exchange Rate | The current exchange rate |
| Spot Market | The market for immediate delivery |
| Spot Price | The current price |
| Spot Rate | The interest rate for immediate delivery |
| Spot Trade | A trade that settles immediately |
| Spread Betting | Betting on the price movement of an asset |
| Spreads | The difference between two prices or rates |
| Stable Value Fund | A type of investment fund |
| Stagflation | A combination of high inflation and high unemployment |
| Stagnation | Slow economic growth |
| Stakeholder | Anyone affected by a company’s actions |
| Stalking-Horse Bid | A bid made to set a floor price |
| Standard & Poor’s (S&P) | A credit rating agency |
| Standard Deduction | A deduction used in calculating taxable income |
| Standard Deviation | A measure of volatility |
| Standard Error | A measure of statistical accuracy |
| Standard Industrial Classification (SIC Code) | A system for classifying industries |
| Standard of Living | The level of wealth and comfort available to a person |
| Standardization | Making products or processes uniform |
| Standby Letters of Credit | A guarantee of payment |
| Stare Decisis | A legal principle of following precedent |
| Startup | A new business |
| State-Owned Enterprise (SOE) | A company owned by the government |
| Statement of Retained Earnings | A financial statement |
| Statistical Significance | The likelihood that a result is not due to chance |
| Statistics | The science of collecting and analyzing data |
| Statute of Frauds | A law requiring certain contracts to be in writing |
| Statute of Limitations | A law limiting the time in which a lawsuit can be filed |
| Statutory Reserves | Reserves required by law |
| Step-Up in Basis | An increase in the basis of an asset |
| Sterling Overnight Interbank Average Rate (SONIA) | A benchmark interest rate |
| Sticky Wage Theory | The theory that wages do not adjust quickly to changes in economic conditions |
| Stipend | A payment |
| Stochastic Modeling | A type of modeling that incorporates randomness |
| Stochastic Oscillator | A technical indicator |
| Stochastic RSI (StochRSI) | A technical indicator |
| Stock | A share of ownership in a company |
| Stock Analysis | The process of evaluating stocks |
| Stock Appreciation Right (SAR) | A type of stock-based compensation |
| Stock Compensation | Compensation paid in stock |
| Stock Dividend | A dividend paid in stock |
| Stock Exchange Daily Official List (SEDOL) | A security identifier |
| Stock Exchange-Traded Fund (ETF) | An exchange-traded fund that tracks a stock market index |
| Stock Keeping Unit (SKU) | A code used to track inventory |
| Stock Market | A market for trading stocks |
| Stock Market Crash | A sudden and dramatic decline in stock prices |
| Stock Option | The right to buy or sell stock at a certain price |
| Stock Quote | The current price of a stock |
| Stock Screener | A tool used to filter stocks |
| Stock Split | An increase in the number of outstanding shares |
| Stock Symbol (Ticker) | A code used to identify a stock |
| Stockbroker | A person who buys and sells stocks on behalf of clients |
| Stockholders’ Equity | Same as Shareholder Equity |
| Stop-Limit Order | A type of order to buy or sell a stock |
| Stop-Loss Order | A type of order to sell a stock when it reaches a certain price |
| Stop Order | Same as Stop-Loss Order |
| Stop Payments | An order to a bank to stop payment on a check |
| Store of Value | Something that can be used to store wealth |
| Straddle | An options strategy |
| Straight Line Basis | A method of depreciation |
| Straight-Through Processing (STP) | The automated processing of transactions |
| Strangle | An options strategy |
| Strategic Alliance | A partnership between two or more companies |
| Strategic Financial Management | The process of managing finances to achieve strategic goals |
| Strategic Management | The process of setting goals and making decisions |
| Stratified Random Sampling | A type of sampling |
| Strength, Weakness, Opportunity, and Threat (SWOT) Analysis | A framework for analyzing a business |
| Stress Testing | A process of evaluating how a financial institution would perform under adverse conditions |
| Strike Price | The price at which an option can be exercised |
| Structural Unemployment | Unemployment due to changes in the economy |
| Structured Finance | A type of financing |
| Structured Note | A type of investment |
| Student Loan Forgiveness | Cancellation of student loan debt |
| Subjective Probability | Probability based on personal judgment |
| Sublease | A lease from a tenant to another party |
| Subordinated Debt | Debt that has a lower priority than other debt |
| Subordination Agreement | An agreement that subordinates debt |
| Subprime Loan | A loan to a borrower with poor credit |
| Subprime Mortgage | A mortgage to a borrower with poor credit |
| Subrogation | The right of one party to stand in the place of another party |
| Subscription Agreement | An agreement to purchase securities in a private placement |
| Subsidiary Rights | Rights to use a work in different ways |
| Subsidy | A government payment to support a business or industry |
| Substantially Equal Periodic Payment (SEPP) | A method of withdrawing money from a retirement account |
| Substitute | A good that can be used in place of another good |
| Substitution Effect | The change in demand due to a change in relative prices |
| Sukuk | Islamic bonds |
| Sum of Squares | A statistical measure |
| Sum-of-the-Parts Valuation (SOTP) | A valuation method |
| Summa Cum Laude | A Latin term meaning “with highest honor” |
| Sunk Cost | A cost that has already been incurred |
| Superannuation | Retirement benefits |
| Supplemental Executive Retirement Plan (SERP) | A retirement plan for executives |
| Supply | The amount of a good or service that producers are willing to sell |
| Supply Chain | The network of organizations involved in producing and distributing a product |
| Term | Definition |
|---|---|
| Supply Chain Management (SCM) | The management of the supply chain |
| Supply Curve | A graph showing the relationship between price and quantity supplied |
| Supply Shock | A sudden change in supply |
| Support (Support Level) | A price level at which a security is likely to find support |
| Supranational | An organization that transcends national boundaries |
| Surcharge | An additional charge |
| Surety | A guarantee |
| Surplus | An excess |
| Surplus Lines Insurance | Insurance that is not readily available in the standard market |
| Survivorship Bias | A bias that occurs when only successful examples are considered |
| Sustainability | The ability to maintain something over time |
| Sustainable Growth Rate (SGR) | The maximum rate at which a company can grow without needing external financing |
| Swap | An agreement to exchange cash flows |
| Swap Execution Facility (SEF) | A trading platform for swaps |
| Swap Rate | The fixed rate in an interest rate swap |
| Swaption (Swap Option) | An option to enter into a swap |
| Sweat Equity | Equity earned through work |
| Sweep Account | A bank account that automatically transfers funds |
| Swing Trading | A trading strategy that involves holding positions for a few days or weeks |
| Swingline Loan | A short-term loan |
| Switching Costs | The costs incurred by switching suppliers |
| Symmetrical Distribution | A distribution that is evenly balanced |
| Syndicate | A group of underwriters |
| Syndicated Loan | A loan provided by a group of lenders |
| Synergy | The benefit from combining two or more entities |
| Synthetic | A financial instrument that mimics another instrument |
| Systematic Investment Plan (SIP) | A method of investing regularly |
| Systemic Risk | The risk of a collapse of the entire financial system |
| Systematic Sampling | A type of sampling |