|account certification account certification||the process of verifying tax identification information; Fidelity uses Form W-9 for US citizens and Form W-8 for nonresident aliens and foreign entities|
|accrued interest accrued interest||the interest received from a security's last interest payment date up to the current date or date of valuation; an investor who sells a security with accrued interest will not receive that interest until the next interest payment date after the sale; the buyer receives all interest from the last payment date, including any interest that accrued while the bond was owned by the prior investor; the buyer then pays the seller all interest that has accrued from the last payment date up to but not including the settlement date for the trade; in a bond ladder’s summary calculations, the accrued interest field refers to the sum of all accrued interest from the securities in the ladder that will need to be paid if the ladder is purchased on that day|
|add-on offering add-on offering||when a publicly traded company issues additional shares to the public|
|adjusted options adjusted options||option contract that has been adjusted or changed from its original terms due to a corporate action, special dividend, or other occurrence impacting the underlying security|
|age of majority age of majority||legally recognized age of adulthood; 18 in most U.S. states|
|agency/GSE agency/GSE||agency bonds are issued by official U.S. government bodies (e.g., Tennessee Valley Authority (TVA); government sponsored entity (GSE) bonds are offered by lenders created by an act of Congress to assist groups of borrowers (e.g., farmers, ranchers, homeowners, mortgage lenders, etc.); the principal and interest of GSE bonds are not guaranteed by the U.S. government; Agency and GSE bonds are generally available in minimum denominations of $10,000, with subsequent investments in increments of $5,000; Fidelity makes these securities available in minimum denominations of $1,000, and subsequent investment increments of $1,000|
|allocation allocation||the amount of stock in an initial public offering (IPO) that is sold to a customer|
|Alternative Minimum Tax (AMT) Alternative Minimum Tax (AMT)||a separate tax system, complementary to the federal income tax system; the AMT system attempts to make sure that anyone who benefits from certain tax advantages will pay at least a minimum amount of tax|
|amendment amendment||additional registration document that is filed by the issuer with the SEC that has additional information regarding the proposed offering for that company|
|American Depositary Receipts (ADRs) American Depositary Receipts (ADRs)||securities offered by non-U.S. companies who want to list on an American exchange; each ADR represents a certain number of a company’s regular shares|
|ask yield to maturity ask yield to maturity||the rate of return an investor receives if an investment is held to the maturity date, calculated using the displayed price at which a third-party seller is offering to sell the securities|
|Asset allocation Asset allocation||
Asset allocation involves dividing your investment portfolio among the different asset classes—stocks, bonds, and cash. The process of picking which mix of assets to hold in your portfolio is a very personal one, depending largely on your goals, time horizon, and ability to tolerate risk.
If you need the money soon, you may consider investing conservatively and focus on lower-risk investments like certificates of deposit (CDs) and short-term bonds. If you have longer, consider taking on more risk for greater potential growth with a mix of stocks and longer-term bonds.
The key is to choose an asset mix that aligns with your goals, time horizon, and tolerance for risk—and to stick with it. As your needs in life change, so may the help you require. At every turn, Fidelity is here to help you plan—from choosing investments to managing your portfolio.
|auction auction||a security distribution system in which the price is set, based on auction bids, at the lowest level that will raise the requisite funds|
|auction date auction date||the date on which Treasury auction and Agency/GSE auction securities will be offered via Dutch auction|
|Auto Roll Auto Roll||a feature that provides customers with the ability to purchase certain eligible Treasury auction securities and/or new issue FDIC-insured certificates of deposit (CDs) with the proceeds of the principal of these securities at maturity automatically used to purchase a similar instrument; auto roll will continue to purchase a new security at the maturity of an older security unless the customer cancels the feature for that security, there is a material change to the Treasury auction schedule, or Fidelity is unable to find a replacement new issue CD that meets the initial size, duration and coupon frequency criteria of the maturing security|
|average coupon rate average coupon rate||the weighted-average coupon rates of all the bonds in a bond ladder|
|average high and low for the day average high and low for the day||
this is a fair market value option, which means your stock option plan takes the average of the highest and lowest trading price of your company stock for the day and uses that average to calculate the:
- taxable gain
- withholding taxes for nonqualified stock options
- Alternative minimum tax (AMT) for incentive stock options
|average price average price||the weighted-average price of the bonds in a bond ladder|
|average yield average yield||the weighted-average yield to maturity for the bonds in a bond ladder; when searching Fidelity’s bond inventory, this amount represents the average yield for all securities offered by Fidelity that meet the search criteria entered for a particular ladder|
|average yield to worst average yield to worst||the lowest possible average yield of all bonds in a bond ladder if the worst possible bond repayment scenarios take place, reflecting the lower of the yield to maturity or the yield to call based on the most recent Third Party price|
|basis point basis point||one one-hundredth (1/100 or 0.01) of one percent; used to express the yield|
|benchmark formula benchmark formula||
a formula to determine a performance standard against which a bond or other security can be measured
in the case of variable or step-rate securities, the addition or subtraction of a certain coupon rate differential over a benchmark
|benchmark reference benchmark reference||a group of securities or an index whose overall performance is generally agreed to be used as a standard against which relative investment performance is measured, or, in the case of variable or stepped rate securities, against which an interest rate differential or "spread" will be added or subtracted|
|beneficiary beneficiary||individual who receives the benefit from an estate, trust, retirement account, life insurance policy, or account with a transfer on death (TOD) designation|
|best efforts best efforts||arrangement whereby investment bankers acting as agents agree to do their best to sell an issue to the public; instead of buying the securities outright, these agents have an option to buy and an authority to sell the securities|
|bid bid||a proposal to purchase securities at a specified price; bids are infrequently available for municipal bonds and certificates of deposit (CDs) as compared to more liquid fixed income securities, such as U.S. Treasuries and corporate bonds|
|bid request bid request||the ability for customers to request that dealers competitively price a security that they are attempting to sell. This occurs when there are no bid quotes displayed on Fidelity.com or a customer wishes to sell a smaller quantity than the current minimum on Fidelity.com. Customers may choose to sell at the bid price before the expiration time or let the bid expire.|
|blackout period blackout period||a certain time frame when privileges to exercise or sell your shares may be restricted; refer to your plan rules for more information|
|Blue Sky Laws Blue Sky Laws||The registration of new issue securities with the state agency that reviews selling documents for accuracy and completeness. When seen as an attribute ("SKY") in a CD Results table or Details page, the phrase is used to point out those states that have Blue Sky Laws that prohibit the marketing and sale of that security to customers residing in that state.|
|Blue Sky State and Territory Abbreviations Blue Sky State and Territory Abbreviations||
|bond type bond type||the type of bond as delineated across the primary product sub-categories of corporates, municipals, Agencies/GSEs, Treasuries, or Certificates of Deposit; in the bond ladder tool, bond type indicates whether the ladder will invest in only municipal or taxable bonds; generally, tax-free municipal securities are considered inappropriate holdings for tax-advantaged accounts such as an IRAs and other retirement accounts; please consult your tax advisor for advice about your specific situation.|
|book book||list of all indications of interest for a new issue offering put together by the lead underwriter|
|Build America Bonds (BAB) Build America Bonds (BAB)||a category of taxable municipal bonds which have no implied backing from the federal government and can be one of two types; the first type of Build America Bond provides a Federal subsidy through Federal tax credits to investors in the bonds; the second type of Build America Bond provides a Federal subsidy through a refundable tax credit paid to state or local governmental issuers by the Treasury Department and the Internal Revenue Service|
|butterfly spread butterfly spread||
A butterfly spread is designed to profit from different levels of volatility with defined risk and profit. A long butterfly spread can help investors profit when volatility is low/decreasing and anticipate that the stock will remain close to the middle strikes during the life of the option. A long butterfly spread could be created by purchasing 1 at a lower strike price, purchasing 1 at a higher strike price, and selling 2 strike price in the middle (either all calls or all puts) or some multiple consistent with this ratio. A short butterfly spread could be created by selling 1 at a lower strike price, selling 1 at a higher strike price, and purchasing 2 of a strike price in the middle (either all calls or all puts) or some multiple consistent with this ratio which the trader's outlook would be for the underlying to exceed the outside strikes. The outside strikes (higher and lower strikes) are known as the wings and the middle strike is known as the body.
|buy/sell buy/sell||for the term 'buy/sell' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'|
|buy-sell agreement buy-sell agreement||for business with multiple owners; legal contract that stipulates the terms for remaining owners to purchase the interest of one that is departing|
|calendar calendar||refers to upcoming IPOs and secondary offerings; Fidelity maintains equity, bond, and municipal calendars|
|calendar spread calendar spread||
A calendar spread involves buying and selling the same type of option (either calls or puts) for the same underlying stock at the same strike price, but at different expiration dates. This type of strategy is also known as a time or horizontal spread due to the differing maturity dates.
|call feature call feature||a feature of a bond or other security that determines the terms under which it can be redeemed by the issuer before the scheduled maturity|
|call options call options||
The buyer of call options has the right, but not the obligation, to buy an underlying security at a specified strike price. Essentially, that means if you were to buy call options on XYZ stock, for example, you would have the right to buy XYZ stock at an agreed-upon price up, and until a specific date.
|call protection call protection||Provision of a bond that makes it non-callable or not subject to a scheduled call, even though other early redemption provisions may exist as specified in the prospectus or official statement.|
|call provision call provision||a feature of a bond or other security that determines the terms under which it can be redeemed by the issuer before the scheduled maturity|
|call schedule call schedule||the list of dates on which a fixed-income security can be redeemed prior to maturity by the issuer; also includes the corresponding call prices|
|callable callable||a bond or other security that may be redeemed by the issuer before the scheduled maturity; terms of this feature can be found in the bond's call schedule|
|called bonds called bonds||
securities that have either:
|cancellation cancellation||when an IPO or secondary issue has difficulty getting investor interest to raise the desired capital, the company issuing the shares may cancel the offering in favor for some other form of financing|
|capital gains tax capital gains tax||a tax on a positive return on an investment resulting from the sale price of a security being higher than the purchase price|
|capital loss capital loss||a negative return on an investment resulting from the sale price of a security being lower than the purchase price|
|cashless exercise (exercise and sell) cashless exercise (exercise and sell)||the exercise of the option and sale of the underlying shares take place simultaneously, so the broker uses the proceeds of the sale to pay the company for the exercise price and any tax withholding; the optionee receives the remaining cash, less any brokerage commission and fees|
|CD inflation protected (CDIP) CD inflation protected (CDIP)||A form of cd that compensates the investor for inflation via the value of the bond's or CD's principal. This is in contrast to an inflation linked CD (IFCD), which compensates the investor for inflation via an adjustable coupon.|
|charitable lead trust charitable lead trust||
trust designed to make payments to a charity for a set number of years or the duration of the grantor’s life; when the trust term ends, remaining assets are distributed to the donor and/or other beneficiaries
|charitable remainder trust charitable remainder trust||trust designed to make payments to the grantor and/or other noncharitable beneficiaries for a set number of years or the duration of the grantor’s life; when the trust term ends, remaining assets are distributed to one or more charities|
|charitable trust charitable trust||trust designed to benefit one or more charities|
|closing letter closing letter||sent by the IRS to the executor to indicate that the estate’s tax return is satisfactory; depending on state law, the executor may have to file a closing letter with the state tax bureau|
|COBRA COBRA||federal mandate for most employers with group health care coverage to offer employees the opportunity to temporarily continue group coverage under their existing plan if the coverage would otherwise cease due to termination, layoff, or death; covered individuals (including family members) may be eligible for the same level of benefits received prior to the death or termination, but are often responsible for the entire policy premium|
A collar is an options strategy that helps put a cap on both gains and losses for a stock position you own. There are 3 components to constructing a collar: Purchasing or having an existing stock position, selling a call (typically an out-of-the-money call), and buying a put (typically an out-of-the-money put).
|co-manager co-manager||underwriters for the initial public and secondary offerings who are not the lead manager controlling the offering; names of these underwriters appear on the bottom of the front page of the prospectus, with the most important manager appearing on the top left, and the co-managers arrayed from left to right in order of importance|
|combination spread combination spread||
A combination spread is a multi-leg options strategy involving either the purchase of a call and selling of a put, or the selling of a call and the purchase of a put.
|commission commission||the fee paid to a broker for executing a trade based on the number of shares traded or the dollar amount traded|
|common stock common stock||units of ownership in a public company for which the holders can typically vote on matters pertaining to the company and receive dividends from the company’s growth; common stockholders are the last to receive assets if the company liquidates|
|conditional call conditional call||identifies if there is a conditional call provision, which permits the issuer to redeem the security conditioned upon the occurrence of certain events as specified in the security's prospectus|
|condor options strategy condor options strategy||
The condor options strategy consists of 4 options, either all calls or all puts, and all typically have the same expiration date. The long condor is initiated at a debit and is constructed by buying the lowest strike, selling the lower middle strike, selling the higher middle strike, and buying the highest strike. An investor's outlook using a condor is that the price of the underlying will settle between the middle strikes and that implied volatility will decrease during your time horizon. The short condor is initiated at a credit and is constructed by selling the lowest strike, buying the lower middle strike, buying the higher middle strike, and selling the highest strike. An investor's outlook is that the price of the underlying will move outside the higher or lower strike. The outside legs (highest or lowest strikes) are referred to as the wings and the inside legs (two middle strikes) are referred to as the body.
|conduit bonds conduit bonds||revenue bonds issued by state agencies, which are generally third-party entities that act on behalf of the actual borrowers, typically private nonprofit (501(c)(3)) entities; the third-party conduit borrower—not the issuing agency—is responsible for interest payments and principal repayments|
|conservator conservator||an entity, typically the Federal Deposit Insurance Corporation, that may be appointed to take legal control over a financial institution and all of its assets|
|contemporaneous cost contemporaneous cost||For secondary market bonds and CDs, the displayed bid or offer price at which a bond or CD is offered at on Fidelity.com.|
|continuously callable continuously callable||a redemption of bonds that may occur at any time after the initial call date upon any required notice|
|control persons, insiders, or affiliates control persons, insiders, or affiliates||officers, directors, policy-making executives, major shareholders (generally owners of 10% or more of outstanding shares), and other people who are in a position to directly or indirectly control the management of the company; this includes spouses, family members who live with the control person, and other entities affiliated with control persons, as defined in Rule 144; securities trading by a control person of the issuer is subject to restrictions, regardless of whether the security is restricted; a control person must complete Rule 144 documentation and comply with Rule 144 when selling control securities|
|convertible bond convertible bond||
issues of bonds with an option allowing the bondholder to exchange the bond for a specified number of shares or common stock in the firm. This is disclosed at the time the bond is issued
bonds that contains a provision allowing the holder to exchange the bond for a specified number of shares of a different security (usually common stock) issued by the same company that issued the bond; terms of conversion are disclosed at the time the bond is issued
|convexity to worst convexity to worst||Convexity to Worst is the convexity of a bond computed using the bond's nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality|
|cooling off period cooling off period||time period, usually about 20 days, between the filing of the registration statement with the Securities and Exchange Commission (SEC) and the offer of those securities to the public; during the cooling off period, the syndicate and selling group members distribute tombstone notifications announcing the new issue, send preliminary prospectuses to qualified investors for review, and take indications of interest from customers|
|corporate bond corporate bond||a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate set at the time the bond is issued; generally have a face value of $1,000 and a specific maturity date|
|corporate debt corporate debt||a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate set at the time the bond is issued; generally have a face value of $1,000 and a specific maturity date|
|CorporateNotes ProgramSM CorporateNotes ProgramSM||a program that offers fixed rate senior and subordinated, unsecured obligations from a variety of independent issuers on a weekly basis, with a range of maturities and structures available; maturities range from 9 months to 30 years for both callable and non-callable securities; CorporateNotes may be purchased in principal amounts as low as $1,000 and in additional increments of $1,000; the risks involved are similar to other corporate bond investments, including but not limited to credit risk, and interest rate risk|
|coupon coupon||the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10% coupon will pay $100 per $1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed-income search results pages, the term "Step-Up" instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step-Up will reveal the step-up schedule for that security|
|coupon frequency coupon frequency||the frequency with which a fixed-income security pays interest (e.g., quarterly, semi-annually, yearly); see also payment schedule|
|coupon rate coupon rate||a bond's annual interest rate, expressed as a percentage of the bond's face value|
|coupon type coupon type||identifies how a bond's coupon is structured during the life of that security. Examples are Fixed, Variable, Step, etc|
|covered call explained covered call explained||
A covered call is an options strategy designed to generate income on stocks you own—and don't expect to rise in price anytime soon. A covered call involves owning shares of the underlying stock and selling a call (which grants the buyer the right, but not the obligation, to buy that stock at a set price until the option expires).
|covered non-public company covered non-public company||any non-public company satisfying the following criteria: income of at least $1 million in the last fiscal year or in two of the last three fiscal years and shareholders’ equity of at least $15 million; shareholders’ equity of at least $30 million and a two-year operating history; or total assets and total revenue of at least $75 million in the latest fiscal year or in two of the last three fiscal years|
|credit quality credit quality||a criteria used to evaluate the creditworthiness, or risk of default, of an individual fixed-income security; generally expressed through ratings provided by one of the credit ratings agencies|
|credit risk credit risk||the risk that the issuer of a fixed-income security may not be able to make regularly scheduled interest payments or repay the principal at maturity|
|credit shelter trust credit shelter trust||trust established to bypass the surviving spouse's estate in order to make full use of each spouse's federal estate tax exemption (also known as family trust, bypass trust, or B trust)|
|creditor creditor||an entity that extends credit to another entity by providing permission to borrow money; agreement generally includes the terms of the loan, such as interest rate, payment frequency, and date the principal the loan is due; in the context of bonds, an investor in bonds is described as a creditor of the entity that issued the bonds|
|creditworthiness creditworthiness||measurement of the risk of default of an individual fixed-income security or the issuer of a fixed-income security; generally measured by one of the major ratings agencies|
|current factor current factor||a decimal value reflecting the proportion of the outstanding principal balance of a mortgage security, which changes over time, in relation to its original principal value. “The Bond Buyer” publishes the “Monthly Factor Report,” which contains a list of factors for Ginnie Mae, Fannie Mae and Freddie Mac securities. Fannie Mae, Freddie Mac and trustees of private label REMICs also publish REMIC tranche factors|
|current factor effective date current factor effective date||the date that the new proportion of the outstanding principal balance of a mortgage security becomes valid|
|current rate effective date current rate effective date||for variable or step-rate securities, specifies the date on which the next coupon rate change will become effective for interest calculations|
|current yield current yield||the ratio of the annual dollar amount of interest paid on a security to the purchase price or market price of the security, stated as a percentage. For example, a $1,000 bond purchased at par with a 3 percent coupon pays $30 per year, or a current yield of 3 percent. The same bond, if purchased at a discount price of $800, would have a current yield of 3.75 percent. A $1,000 bond purchased at a premium price of $1,200 would have a current yield of 2.50 percent|
|CUSIP CUSIP||the nine-character alphanumeric identifier used to identify a U.S. or Canadian security|
|date (convertible information) date (convertible information)||the date until which the convertible end date feature is available|
|date/time date/time||for the term 'date/time' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'|
|dated date dated date||for some new issue fixed-income securities (e.g., bonds), this is the date on which coupon interest will begin to accrue|
|Day Day||Cancels at market close if not executed.|
|day count basis day count basis||indicates how many days in a month and days in a year are counted when performing interest calculations|
|De Minimis tax rule De Minimis tax rule||when municipal bonds are purchased in the secondary market at a discount, there will be tax implications if it is below the revised issue price. The De Minimis tax rule is price threshold whether the tax will be as a capital gain or ordinary income. If the market discount (revised issue price less the purchase price) is less than 0.25 multiplied by the number of full years to maturity after acquisition, the market discount is treated as a capital gain. Otherwise it will be taxed at your ordinary income tax rate. See our investments products & De Minimis Dilemma for more details|
|debt obligation/principal debt obligation/principal||an interest-bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency/GSE|
|debt refinancing debt refinancing||the act of retiring one debt issue and replacing it with another, usually at a lower interest rate, in order to reduce the issuer's borrowing costs|
|default default||if a bond issuer fails to make either an interest payment or principal repayment on its bonds as they come due, or fails to meet some other provision of the bond indenture, that bond is said to be in default; credit ratings agencies such as Moody's and S&P rate bonds to indicate the issuer's credit quality, and thus provide insight into the likelihood of default|
|delete delete||after expressing an open indication of interest in a new issue fixed-income offering for which securities have not yet been allocated, this option allows customers to cancel that indication of interest and end participation in the offering; once an indication of interest has been deleted, that customer will not be eligible to receive an allocation of securities, even if the indication of interest had previously been confirmed; while customers can attempt to delete an indication of interest at any time before securities are allocated, deletions are performed on a best efforts basis; there is no guarantee that an indication of interest can be deleted, in whole or in part|
the action by which a security used to settle a trade is delivered or received to/from the other side of the trade. Possible values are:
Delta is the sensitivity of an options price to the change in the price of the underlying asset.
|depth of book depth of book||refers to the display of numerous bids and offers in a given security in addition to the best bid and offer price; allows market participants to assess the liquidity of a given security; enables customers to see beyond the best bid or offer price, which may be of a limited quantity; is useful for customers who wish to purchase larger quantities of a given security|
|diagonal spread diagonal spread||
A diagonal spread involves buying one option and selling another option for the same underlying stock, but with different strike prices and different expiration dates.
|discount discount||the amount below the stated 'face' or par value when a fixed-income security (e.g. a bond) is bought or sold; for example, if a bond's face value is $1,000 and it sells for $900, it was sold at a discount|
|disqualifying disposition disqualifying disposition||
when beneficial tax treatment is waived due to selling shares without waiting the IRS mandated time frame for special tax treatment; you can see, on your brokerage account lots page, the date in which you would be able to sell the shares without acquiring a disqualifying disposition
- for incentive stock options (ISOs): o1 year from the date of exercise or 2 years from the date the stock options were granted
- for qualified employee stock purchase plans (ESPPs): 1 year from the purchase date and more than 2 years from the offering period
|distribution method distribution method||the method by which the value of your restricted stock is to be distributed to you: cash to brokerage account, shares to brokerage account, or via payroll|
|domicile country domicile country||indicates the country where the company for the security is incorporated|
|due diligence due diligence||reasonable investigation conducted by the parties involved in preparing a disclosure document to form a basis for believing that the statements contained therein are true and that no material facts are omitted|
|dummy CUSIP dummy CUSIP||temporary nine-character alphanumeric identifier used to identify a U.S. or Canadian security; for bonds, this displays for New Issue Certificates of Deposit (CDs) and New Issue Municipals; converts to a CUSIP on settlement|
durable power of attorney
durable power of attorney
|authority granted to another person to make certain decisions on a person’s behalf; unless this authority is revoked before the person becomes incapacitated, it extends to the end of natural life|
|duration duration||a quantitative measure that indicates the degree to which a bond's price will fluctuate in response to changes in comparable interest rates|
|duration to worst duration to worst||the duration of a bond computed using the bond's nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality|
|EDGAR – Electronic Data Gathering, Analysis, and Retrieval EDGAR – Electronic Data Gathering, Analysis, and Retrieval||Securities and Exchange Commission (SEC) computer database system that allows issuers to file reports with the SEC by computer instead of having to file physical documents; this data is available to the general public via the Internet|
|effective date effective date||the day a newly registered security can be offered for sale|
|Employee Stock Purchase Plan (ESPP) Employee Stock Purchase Plan (ESPP)||a type of stock plan that allows employees to purchase shares of company stock via accumulated payroll deductions, sometimes at a discount|
|enrollment period enrollment period||the period of time, predetermined by your employer, when an eligible employee is able to enroll in the Employee Stock Purchase Plan|
|escrow end date escrow end date||the final effective date of a fund established to hold funds pledged and to be used solely for a designated purpose, typically to pay debt service on an outstanding issue in an advance refunding|
|estimated annual income (EAI) estimated annual income (EAI)||estimate of annual income from a specific security position over the next rolling 12 months; calculated for U.S. government, corporate, and municipal bonds, and CDs by multiplying the coupon rate by the face value of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate bonds (including treasury, agency, GSE, corporate, and municipal bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed-end funds, and certain types of bonds|
|estimated proceeds estimated proceeds||this is an estimate of the cash or share proceeds from an exercise or sell order; this estimate shows all proceeds after any estimates for costs or taxes are deducted; actual cash proceeds at time of order execution may be different|
|estimated yield (EY) estimated yield (EY)||estimate of a specific security position's annual yield for the next 12 months; calculated by dividing the estimated annual income (EAI) for the security position by the market value of that position, which may be higher or lower than the original purchase price|
|exchange exchange||the trading exchange (e.g., New York Stock Exchange) where a security is primarily traded|
|exchange traded fund (ETF) exchange traded fund (ETF)||a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund; unlike mutual funds, ETFs trade like common stocks on an exchange, experiencing price changes throughout the day as they are bought and sold|
|executor executor||person named in the will who is responsible for managing the decedent's estate (also known as a personal representative or executrix)|
|exercise exercise||allows you to capture the value between the grant price and the current trading price of your company stock, paying out in either cash or shares, depending on exercise methods allowed by the company|
|exercise and hold exercise and hold||a form of stock option exercise in which you exercise your option to acquire shares of your company stock and hold the stock; when you do this, you need to have funds available in order to pay the exercise cost and required tax withholdings; funds must be available through cash on deposit in your Fidelity Account®, or, if you have been approved for margin, available margin to borrow against other securities in your Fidelity Account|
|exercise and sell (cashless exercise) exercise and sell (cashless exercise)||a form of stock option exercise in which you exercise your option to acquire shares of your company stock and sell the stock immediately; the cash proceeds from the sale are used to pay the exercise cost, required tax withholding, and brokerage commissions and fees; you receive the remaining net cash proceeds in your Fidelity Account; this form of exercise does not require you to provide cash for the exercise|
|exercise and sell to cover exercise and sell to cover||the exercise of options and sale of stock sufficient to cover the total exercise cost; you hold the remaining shares in the account|
|exercise date exercise date||the date you make an action with your stock options and start the process to receive either cash or shares|
|exercise price exercise price||the price per share that you must pay to your company to exercise the stock option; the exercise price is also known as the grant price|
|expected yield expected yield||For new issue fixed-income securities (e.g., bonds), this is the estimate of what the annual rate of return will be for the security. The actual yield for the security may be different.|
|expiration date expiration date||the last date that you are able to exercise your stock options; after this date your options have no value|
|extraordinary redemption - fixed income extraordinary redemption - fixed income||a provision which allows a bond issuer the right to call its bonds before maturity if certain specified events occur (as specified in the offering statement), such as natural disasters,cancelled projects, to almost anything else|
|face value face value||the stated value of an investment at maturity; the face value of a corporate bond, for example, is typically $1,000; for bond ladders, face value is the stated aggregate value of the underlying securities at maturity; for example, if there are five rungs in the ladder with 20 bonds in each rung and each bond has a $1,000 face value, the total face value of the ladder is $100,000; also known as par value or par amount|
|fair market value (FMV) fair market value (FMV)||
the value of your company stock at the time of exercising your options; fair market value is specified in your employer's stock option plan and is used to determine the amount of gain that is treated as compensation for federal income tax purposes; in your plan documents and under your grant information, the process used for fair market value by your company is stated; the fair market value will be one of the following:
- prior business day's close
- average high and low for the day
- real-time price
- today's close
|family limited liability company family limited liability company||entity designed for the transfer of a business, property, or other assets from parents to children to minimize estate tax liability and possibly provide protection from creditors|
|family limited partnership family limited partnership||partnership arrangement designed for the transfer of business, property, or other assets between family members, often from parents to children, in an effort to minimize estate tax liability and possibly provide protection from creditors|
|FDIC certificate FDIC certificate||a unique number assigned by the Federal Deposit Insurance Corporation (FDIC) to identify institutions and the issuance of insurance certificates|
|Federal Deposit Insurance Corporation (FDIC) Federal Deposit Insurance Corporation (FDIC)||
An independent agency of the federal government, created in 1933, charged with preserving and promoting public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions up to applicable limits; by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
Further information on the FDIC and FDIC coverage may be found at http://www.fdic.gov.
|federally tax exempt/taxable federally tax exempt/taxable||
a field that displays on the Search Secondary Market Offerings screen when you are searching for municipal bonds. You can select one of the following options from the drop-down list to refine your criteria:
On the search results screens the table titled "Your Key Search Criteria" will show that the bonds have taken this criteria into account. "Federally Taxable" displays if the bond's income is subject to Federal income taxes. "Federally Tax Exempt" displays if not.
Even though some bond's income are federal income tax exempt, they may be subject to the alternative minimum tax.
|Fidelity Account® Fidelity Account®||most stock plans deposit shares or cash into this account and, from this point, assets can be distributed to fit your needs; this is a nonretirement brokerage account, with trading and cash management features that help you monitor and manage your stock plan|
|Fill or kill Fill or kill||Fills completely or cancels.|
|final prospectus final prospectus||prospectus that is printed after the deal has been made effective and can be offered for sale; it contains the information not available in preliminary prospectus, such as number of shares issued and the offering price|
|FINRA FINRA||Financial Industry Regulatory Authority (FINRA) - the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly|
|firm commitment firm commitment||arrangement whereby investment bankers make outright purchases from the issuer of securities to be offered to the public|
|first coupon date first coupon date||the date when the first coupon interest payment from a new issue fixed-income security (e.g., a newly issued bond) will be made|
|first settlement date first settlement date||the first settlement date for a security as a new issue. Settlement date is the date by which a buyer must pay for the securities delivered by the seller.|
|fixed rate capital securities fixed rate capital securities||
hybrid securities that combine the features of corporate bonds and preferred stock.
Generally have a stated maturity, although some are perpetual, offer attractive yields, and usually pay monthly or quarterly interest or dividends that are fully taxable.
Tend to have higher yields than corporate bonds because they are subordinate in right of payment to all senior debt of the issuer. Issued as shares, with one share being issued at an amount generally lower than the typical $1000 face value for corporate bonds, such as $10 or $25.Generally, the minimum quantity for fixed rate capital securities is 100 shares, with additional investments available in 1-share increments.
|flipper flipper||investor who has acquired shares of an IPO at its offering price and sells it immediately—which Fidelity currently defines as within 15 calendar days following pricing|
|float float||number of a company’s shares which are available for trading|
a security that is incorporated in a foreign country
it can also indicate the percentage or dollar amount of your portfolio or one or more selected accounts that is invested in securities outside the U.S. Portfolio and account analysis shows the foreign exposure for your current holdings. This only applies to holdings that are classified as equities.
Gamma is directly related to delta. Whereas delta will change based on a price move in the underlying asset, gamma is the rate of change, or sensitivity, to a price change in the underlying for delta. Basically, gamma measures how much delta will change based on a $1 move in the underlying position.
|general obligation bond general obligation bond||referring to a type of municipal bond, general obligation bonds are issued by governmental entities but are not backed by revenues from a specific project, such as a toll road. Some general obligation bonds are backed by dedicated taxes on property, while others can be payable from general funds. The latter types of bonds are often referred to as "backed by the full faith and credit" of the governmental entity. While in many instances, "general obligation" means that the issuer has unlimited authority to tax residents to pay bondholders, there are cases in which the issuer or governmental entity may have limited or no taxing authority.|
|generation-skipping transfer (GST) tax generation-skipping transfer (GST) tax||excise tax levied in addition to any gift or estate tax, imposed on the transfer of property to a beneficiary other than a spouse who is two or more generations younger than the donor|
|generation-skipping trust generation-skipping trust||trust designed to use the generation-skipping transfer (GST) tax exclusion so that assets may be distributed to beneficiaries who are two or more generations younger than the donor, such as grandchildren, without incurring GST tax|
|global indicator global indicator||a security that is held by a global custodian outside of the US|
|go public go public||process by which a privately held company first offers shares of stock to the public; this is done via an initial public offering (IPO)|
|Good 'til canceled Good 'til canceled||Cancels after 180 days if not executed.|
|Good 'til canceled (Options) Good 'til canceled (Options)||Cancels after 180 days if not executed or the option expires.|
|government bond government bond||debt obligations of the U.S. government that are issued with maturities of ten or more years; versus government bills issued at one year or less and government notes issued at one to ten years|
|grant grant||each new option or stock award given is a different grant that contains an amount of stock or options determined by your company|
|grant agreement grant agreement||document issued by the company setting forth the number of shares, grant/exercise price, vesting schedule, and other terms of the stock awards|
|grant ID grant ID||the identification number that is assigned to each grant in order to differentiate between awards|
|grant price grant price||the price per share that you must pay to your company to exercise the stock option; the grant price may also be referred to as the exercise price|
|grant type grant type||whether a stock option grant is a tax-advantaged incentive stock option (ISO) or a nonqualified stock option (NSO)|
|grantor grantor||with respect to trusts, the person who creates the trust using his or her own assets (also known as donor or settlor)|
|grantor retained annuity trust (GRAT) grantor retained annuity trust (GRAT)||irrevocable trust that pays a fixed annuity to the grantor for a defined term, with the remainder of the trust passing to a noncharitable beneficiary|
|grantor retained unitrust (GRUT) grantor retained unitrust (GRUT)||trust that pays a fixed percentage back to the donor for a period of time; designed for the transfer of business or property assets and shifts future appreciation to children through the use of gift tax rather than estate tax|
|green shoe green shoe||part of the underwriting agreement which, in the event the offering is oversubscribed, allows the issuer to authorize additional shares (typically 15%) to be distributed by the syndicate; also called the overallotment option|
|gross spread gross spread||difference between the offering price and the net proceeds given to the company; the difference is made up of various fees charged to the issuer, including the selling concession, manager’s fees, underwriting fees, and reallowance|
|health care proxy health care proxy||type of power of attorney that gives a designated individual decision-making power over one's medical affairs; may include "living will" provisions, as well (also known as durable power of attorney for health care)|
|health savings account (HSA) health savings account (HSA)||individual, tax-advantaged savings accounts offered by employers in conjunction with high-deductible health plans (HDHP) to cover qualified medical expenses; contributions are not subject to federal income tax at the time of deposit|
|heir heir||individual who is eligible to inherit the assets of someone who died without a will; also commonly used to describe any beneficiary or inheritor (also known as heir at law)|
|heir at law heir at law||individual who is eligible to inherit the assets of someone who died without a will; determined by state intestacy laws of the state of the deceased's primary residence|
|high yield high yield||Non-investment grade bonds rated below Baa3 on Moody's credit rating scale, and below BBB- or the equivalent on S&P's or Fitch's credit rating scale. Credit ratings are assigned based on an issuer's ability to pay interest and principal. High yield credit ratings denote that the issuer's financial position is relatively weak, and its bonds should be considered a speculative investment. In bond results tables, the Attribute HY is used to indicate that a particular bond is a high yield or non-investment grade bond.|
|histogram histogram||relative distribution of volume and open interest for options within each expiration|
|historical inflation factor historical inflation factor||this is yesterday's inflation factor|
|holding company holding company||company that owns enough shares of another company to secure voting control|
|holding period holding period||this refers to the amount of time that stocks or options must be held before they can be sold or exercised; the holding period requirements are described in the plan documents|
|hot issue hot issue||IPO that trades at a significantly higher price on the secondary market than its initial offering price—this usually occurs when demand of the issue far exceeds the supply; the Securities and Exchange Commission (SEC) defines an issue as hot when it trades 5% higher than its offering price in the secondary market|
|illiquid illiquid||refers to a noncash asset that cannot be sold quickly or easily without the risk of loss in value|
|Immediate or cancel Immediate or cancel||Fills as many shares as possible and cancels remainder.|
|implied volatility implied volatility||
Implied volatility, also known as IV, is a measure of what the market expects volatility to be in the future for a given stock.
|in the money in the money||a stock option is "in the money" when the current market price of your company stock is above the grant price|
|incentive stock option (ISO) incentive stock option (ISO)||
a stock option is the opportunity, granted to you by your company, to purchase a certain number of shares of your company's common stock at a pre-established grant price over a defined period of time
ISOs meet the IRS requirements for special tax treatment; with ISOs, you do not have to pay regular income taxes at the time you exercise your stock options if you hold your shares the later of 1 year from the date of exercise or 2 years from the date the stock options were granted (the waiting period)
- if you decide to sell your stock option shares after the waiting period, you will be subject to a capital gains tax on the difference between the sale price and the grant price
- if you sell your shares prior to or on the 1‑year anniversary of the date on which the shares were granted, the shares you sell are subject to a disqualifying disposition, which means that, generally, you will be required to pay income tax on the difference between the fair market value at the time you exercise the stock options and the grant price
- if you exercise the stock options prior to the 2-year anniversary of the date on which the stock options were granted, hold them, and then sell them between the 1-year and 2-year anniversary on which the stock options were granted, you pay short-term capital gains on the difference between the fair market value on the date you sold the shares and the grant price
|increment increment||the quantity in which additional bonds can be purchased beyond the initial investment quantity; for example 5, meaning $5000 face value|
|indenture indenture||a contract that explains the various terms, options and intricacies of a bond|
An index is used to measure the changes in particular types of securities' values (e.g., stocks).
Major stock market indexes include (where the text in parenthesis is the trading symbol for the index):
S&P 500 (.SPX) – Standard and Poor's 500
DJIA (.DJI) – Dow Jones Industrial Average
NASDAQ (.IXIC) – NASDAQ Composite Index
Russell 2000 (.RUT) – Russell 2000 Index
Technology (.XCI) – AMEX Computer Technology Index
Internet (.IIX) – AMEX Internet Index
Broker/Dealers (.XBD) – AMEX Securities Broker/Dealer
Oil & Gas (.XIO) – AMEX Oil Index
Gold & Silver (.XAU) – Phlx Gold Silver Index
Utilities (.DJU) – Dow Jones Utilities Average
Transportation (.DJT) – Dow Jones Transportation Average
Airlines (.XAL) – AMEX Airlines Index
In a chart, you can select an index and compare the change in its value against the changes in value for a particular security.
In fixed income investing, an index is referenced in the context of a Structured Product’s. The Structured Product tracks the rise and fall of a particular index and offers a return that is some percentage of the index's appreciation as outlined in the Structured Product's prospectus.
|index fund index fund||a type of mutual fund with a portfolio designed to match or track the components of a market index|
|index start level index start level||the value or level of the index that forms the basis of a Structured Product's return on the issue date of the Structured Product. The percent gain of the index equals the index level at the Structured Product's maturity minus the index start level divided by the index start level. Assuming the index appreciates over the life of the Structured Product, the Structured Product will deliver a return equal to the percentage appreciation of the index multiplied by the Participation Rate|
|indicated annual dividend (IAD) indicated annual dividend (IAD)||estimate of a security's dividend payments for the next 12 months; calculated using prior and/or declared dividends for that security; sourced from third-party vendors and derived using either a historical methodology (HM) or a projected methodology (PM), depending on available information; PM annualizes the most recent regular cash dividend; HM accumulates the regular cash dividends paid over the past twelve months; if there is less than one year of dividend history, the accumulated dividends are annualized; HM or PM figure, whichever is calculated, is then multiplied by the reported quantity of the security|
|inflation factor inflation factor||for Treasury Inflation Protection Securities (TIPS) and Certificates of Deposit: Inflation Protected (CDIPs), it is calculated by dividing the latest Reference CPI by the Reference CPI on the Dated Date of the bond. The factor is the number the face value of the bond is multiplied by to calculate the adjusted principal|
|inflation linked CDs (IFCD) inflation linked CDs (IFCD)||A form of CD that compensates the investor for inflation via an adjustable coupon. The IFCD coupon is composed of a fixed component and a portion adjusts from coupon period to coupon period that reflects the inflation during that time. This is in contrast to a Treasury Inflations Protected Security (TIPS) or CD Inflation Protected (CDIP) that make the inflation adjustment through the adjusting the value of the bond's or CD's principal.|
|insiders insiders||persons such as management, directors, and significant stockholders who are privy to information about the operations of a company that is not known to the general public; insiders are subject to various restrictions and or limitations regarding equity stock offerings|
|insured insured||This refers to municipal bonds where the repayment of the principal and payment of coupon interest is guaranteed by a third-party (a party other than the issuer). The insurer guarantees the payment of principal and coupon interest in the event that the issuer fails to do so.|
|interest interest||the amount paid by a borrower to a creditor, or bondholder, as compensation for the use of borrowed money|
|interest accrual date interest accrual date||
for new issue fixed-income offerings (e.g., bonds), this is the date on which coupon interest will begin to accrue
for secondary market fixed-income offerings (e.g., bonds), this is generally the date the last coupon interest payment was paid
|interest income interest income||the dollar amount of all interest earned on government and corporate debt obligations and short-term certificates of deposit, as well as interest earned from cash in a brokerage account; for bond ladders it represents the estimated annual income that will be received from the securities that make up the rung; the income is calculated by multiplying the coupon rate by the quantity of bonds (face value)|
|international international||a security that can be traded in a non-US marketplace and settled in a foreign currency, or an asset class that invests in securities outside of the U.S. See also, Asset Class, Fixed Income, Small Cap, Mid Cap, and Large Cap|
|intestate intestate||describes the death of an individual with no will; all property and assets that would otherwise be governed by a will are passed to beneficiaries according to state intestacy laws|
|investment-grade or investment-grade bonds investment-grade or investment-grade bonds||the broad credit designation given to corporate and municipal bonds which have a high probability of being paid and minor, if any, speculative features; bonds rated Baa and higher by Moody's Investors Service or BBB and higher by Standard & Poor's are deemed by those agencies to be "investment grade"|
|IPO IPO||privately held company offers its shares to the public—an initial public offering (IPO)|
|irrevocable life insurance trust (ILIT) irrevocable life insurance trust (ILIT)||irrevocable trust funded with a life insurance policy and designed to exclude life insurance proceeds from the taxable estate while providing liquidity to the estate and/or the trust's beneficiaries; it generally cannot be changed once it is created|
|irrevocable trust irrevocable trust||trust that cannot be changed once it is created (during the grantor's lifetime or at his or her death)|
|ISIN ISIN||the International Securities Identification Number. It is a 12-character alpha-numerical code that uniquely identifies a specific security. The first two characters identify the country; the third through eleventh character is the National Securities Identification Number; and the 12 character is a check digit|
|issue date issue date||
this is the first date on which a fixed-income security (e.g., bond) could be bought
For a new issue offering, this is generally the expected date on which the security will be allocated to those participating in the offering.
|issue price issue price||price at which a new security will be distributed to the public prior to the new issue trading on the secondary market; commonly referred to as offering price|
|issue price - fixed income issue price - fixed income||the price paid for fixed‐income securities purchased directly from the issuer; for example, a Treasury Auction bond purchased directly from the U.S. government would cost $1,000 at face value|
|issuer issuer||a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc.)|
|issuer (of an option) issuer (of an option)||the company that grants stock options to an optionee|
|issuer events issuer events||
Issuer Events reflect information that pertains to Corporate bonds and Agencies/GSEs (For Municipal Bonds see Material Events). They are designed to bring the investor's attention to key changes of the status of a particular issue or underlying issuer. Examples of Issuer Events include:
Issuer upgrades and downgrades from major credit ratings agencies.
Bond placed on or removed from credit watch by major ratings agencies.
Bond has matured or been called.
Fidelity makes these events available to its customers for informational purposes only. The information has been sourced from third parties and Fidelity has made no independent evaluation of the information or its accuracy, completeness, or timeliness.
On the Secondary Corporate or Agency Bond Search Results Table, "IE" displays in the Attributes column if there are Issuer Events for an issue and would not display if there were none. Available Issuer Events can be viewed. Select "IE" or the issuer name to access Issuer Events.
Issuer Events are also available as part of Fidelity's Event Alerts services. Holders of corporate and agency bonds can elect to receive an event alert to be sent to them electronically whenever an Issuer Event is generated on one of their holdings.
|joint ownership with right of survivorship joint ownership with right of survivorship||ownership arrangement in which two or more individuals own the whole of an asset equally; when one owner passes away, assets pass to the other joint owner(s)|
|last coupon last coupon||Date issuer anticipates to pay the penultimate interest payment.|
|lead underwriter lead underwriter||underwriter who, among other things, is in charge of organizing the syndicate, distributing member participation shares, and making stabilizing transactions; the lead underwriter’s name appears on the left side of a prospectus cover|
|limit order limit order||A limit order sets the maximum price at which you’re willing to buy or the minimum price at which you’re willing to sell. Limit orders guarantee price, but do not guarantee execution|
|Limit order Limit order||Sets the maximum price at which you're willing to buy or minimum price at which you're willing to sell.|
|liquidity liquidity||degree to which an asset can be bought or sold quickly or the ability to be otherwise converted to cash quickly|
|listed listed||indicator specifying whether the bond is listed and tradeable on the NYSE|
|lockup period lockup period||time period after an IPO when insiders at the newly public company are restricted by the lead underwriter from selling their shares in the secondary market|
|long term care (LTC) insurance long term care (LTC) insurance||insurance that covers the needs of disabled persons not generally covered by health insurance, Medicare, or Medicaid|
|lot lot||refers to the number of shares you purchased in 1 transaction; for example, if you bought the same stock a few times during the year, you will have purchased multiple lots|
|make whole call make whole call||a corporate issue with an implicit call at an increasing premium as interest rates decline. Issuers may call these bonds at par plus a premium. This premium is derived from the yield of a comparable Treasury security plus additional basis points. The "street" treats these issues as non-call bonds due to the fact that it would be prohibitively expensive for a company to exercise this call option|
|marginable security marginable security||a security that can be bought by borrowing on margin. The Federal Reserve determines which securities are marginable. Marginable securities you hold in your account are held in margin which increases your margin buying power. On the fixed-income security (e.g., bond) details screen, Yes displays if the security is marginable. No displays if it is not.|
|mark-down mark-down||For secondary market bonds and CD sells, the difference (dollar and %) between the Prevailing Market Price (PMP) and the trade price. Mark-down is calculated as: Mark-down / Total initial price x 100. The mark-down includes, but may not be limited to, Fidelity’s $1 per bond pricing. Details available on our fee schedule.|
|market capitalization market capitalization||method of calculating the value of a company that is equal to the number of shares outstanding multiplied by the price of each share of the stock|
|market fluctuation market fluctuation||the rise or fall in a security's price or portfolio's value within a short-term period; may be slight or dramatic depending on market and other conditions|
|market order market order||A market order is the quickest way to place a trade by executing at the next available price when the market is opened. Market orders guarantee execution, but do not guarantee price|
|Market order Market order||Executes at the next available price when the market is open.|
|mark-up mark-up||For secondary market bonds and CD purchases, the difference (dollar and %) between the Prevailing Market Price (PMP) and the trade price. Mark-up is calculated as: Mark-up / Total initial price x 100. The mark-up includes, but may not be limited to, Fidelity’s $1 per bond pricing. Details available on our fee schedule.|
|material events - fixed income material events - fixed income||the disclosure of certain enumerated events affecting a municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax-exempt status of the security; (7) modifications to rights of securities holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and education|
|maturity, maturity date(s) maturity, maturity date(s)||the date on which the principal amount of a fixed-income security is scheduled to become due and payable, typically along with any final coupon payment; it is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature; for example, if the issuer is offering 25 bonds and the maturity dates for the individual bonds range over a 10-year period, one might see 8/4/2002, 2003-2005, 2007, 2008, 2009, 2010; this would indicate that the securities mature on 8/4 of the years listed|
|maximum maximum||the highest value that can be specified when refining a particular search for fixed-income secondary market offerings; for example, the maximum coupon or ask price|
|maximum rate maximum rate||the maximum coupon rate that a stepped or variable rate security can adjust to. For bond ladders, it indicates the maximum coupon you would like to receive on any security in the ladder|
|Medallion Signature Guarantee Medallion Signature Guarantee||
Fidelity requires a Medallion Signature Guarantee when it is essential to ensure the authenticity of the signature. A signature guarantee is a widely accepted way to protect customers and investment companies from the legal repercussions resulting from invalid or illegal endorsements.
You should be able to obtain a signature guarantee from a bank, a broker, a dealer, a credit union (if authorized under state law), a securities exchange or association, a clearing agency, or a savings association.
A notary public cannot provide a signature guarantee. We cannot accept a notarization instead of a signature guarantee.
|minimum minimum||the lowest value that can be specified when refining a particular search for fixed-income secondary market offerings; for example, the minimum coupon or ask price|
|minimum rate minimum rate||the minimum coupon rate that a stepped or variable rate security can adjust to. For bond ladders, you can indicate the minimum coupon you would like to receive on any security in the ladder|
|Moody's Moody's||an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk|
|Moody's rating Moody's rating||
a bond rating system used by Moody's to specify its assessment of the quality of bonds (e.g., Aaa for best quality bonds, Baa for a lower quality than Aaa, etc.).
Moody's® is a registered trademark of Moody's Investors Service, Inc.
Moody's ratings ("Ratings") are proprietary to Moody's or its affiliates and are protected by copyright and other intellectual property laws. Ratings are licensed to Licensee by Moody's. RATINGS MAY NOT BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
|municipal general obligation bond municipal general obligation bond||a type of municipal bond backed by the full faith, credit, and taxing power of the issuer, specifically its ability to collect taxes; only entities that have the right to levy and collect taxes can issue general obligation bonds; certain governmental entities are subject to legal limits on the amount of taxes that they can impose, and their issues are called limited-tax general obligation bonds; unlimited-tax bonds are issued by government entities that are not subject to those limits|
|naked call naked call||
A naked call involves the seller of a call (who does not own the underlying shares) having the obligation to sell the underlying shares of stock at the strike price of the call. The seller of naked calls has unlimited risk, because the stock price can rise indefinitely. The profit potential is limited to the premium received when the call was sold.
|naked put naked put||
A naked put involves the seller of a put having the obligation to buy the underlying stock at the strike price at any time until the expiration date, without setting aside the full cash amount to fund the purchase if the option is exercised. Although not unlimited, the risk is substantial because the price of the underlying stock can fall to zero. The profit potential is limited to the premium received when the put was sold.
|net value net value||the amount your options or shares are in the money; this is the value of your grants prior to taxes that may need to be withheld|
|new issue new issue||a security publicly offered for sale for the first time|
|new issue order new issue order||a specific type of order, for a new issue municipal security or new issue structured product security, submitted by a customer to let Fidelity know that they want to become eligible to receive an allocation of a new issue; information submitted includes the brokerage account from which the funds to pay for the securities will be deducted, the security's CUSIP, and the maximum quantity of securities that the customer would be willing to purchase; by placing a new issue municipal or new issue structured product order, customers are expressing their desire to participate in a new issue offering. For new issue municipal orders, unless the order is cancelled by the customer, they will participate in the allocation process, allocations may be made in whole, in part, or not at all; updates regarding the order are sent to the customer as an alert that is sent by email or viewable in the Service Message Center|
|next coupon date next coupon date||the date (MM/YY) of the bond's next coupon payment|
|next reset date next reset date||the next date upon which a new rate will be established for stepped and variable rate securities|
|next reset rate next reset rate||the next rate that will be established for stepped and variable securities|
|nonqualified stock option (NSO) nonqualified stock option (NSO)||
a stock option is the opportunity, granted to you by your company, to purchase a certain number of shares of your company's common stock at a pre-established grant price over a defined period of time
NSOs do not meet certain IRS requirements that allow you special tax treatment; with NSOs, you are taxed when you exercise the stock options; you pay ordinary income taxes on the difference between the fair market value at exercise and the grant price (net value)
|offer price offer price||the price at which a security may be purchased; conversely, bid price is the price at which a security may be sold|
|offering date offering date||the first day a security is publicly offered for sale|
|offering period offering period||the time period when your company collects your contributions from your paycheck and holds the money until it is time to purchase shares at the end of the offering period|
|offering price offering price||price for which a new security issue will be sold to the public; also known as “issue price”|
|offering range offering range||price range at which the company expects to sell its stock in a public offering|
|On-the-close On-the-close||Fills only at the closing price; accepted between 9:30 a.m. and 3:40 p.m. ET.|
|On-the-open On-the-open||Fills only at the opening price; accepted between 4:15 p.m. and 9:28 a.m. ET.|
|open order open order||an order status indicating that an order has been placed and that no part of that order has been executed|
|option adjusted convexity option adjusted convexity||
the change in price of the bond not explained by option-adjusted duration. It is a measure of the curvature of the price-yield relationship of a bond after adjusting for any embedded options. The calculations are based on the Black-Karasinski model (an option valuation model in which the interest rate term structure is lognormal), for which the key assumptions are:
|option adjusted duration option adjusted duration||bond prices typically move in the opposite direction to changes in interest rates. If interest rates rise, bond prices usually fall (and vice versa). Duration is a measure that helps approximate the degree of price sensitivity of a bond to changes in interest rates. Although stated in years, duration is often explained as an estimate of the percentage price change of a bond in response to a one percent change in interest rates. Bonds with higher duration have greater sensitivity to changes in interest rates and will generally experience a more significant drop in value as interest rates rise. For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond. For example, if a bond is called, interest payments cease and principal is returned earlier than the bond's maturity. The option-adjusted measure of duration is referred to as Option Adjusted Duration (OAD).|
|option adjusted spread option adjusted spread||A bond's yield is typically comprised of two components: 1) the yield on a similar benchmark security (typically Treasury securities) and 2) a premium above the yield on a similar benchmark security which seeks to compensate an investor for the credit risk associated with a particular bond. This premium is referred to as yield spread or simply "spread." For bonds with embedded options (for example callable or puttable bonds), the spread measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond. For example, if a bond is called, interest payments cease and principal is returned earlier than the bond's maturity. The option-adjusted measure is referred to as Option Adjusted Spread (OAS).|
|option agreement option agreement||this document is reviewed before accepting a new grant that is a contract, between you and your company, that sets forth the terms and rules|
|option chain option chain||
An option chain is the list of all the options available for an underlying stock, usually sorted by expiration date.
|option levels option levels||
there are 5 levels of options trading approval, the following strategies are available:
|option strategy option strategy||consists solely of either calls or puts, or a combination of both, to take advantage of a specific market forecast|
|optionee optionee||anyone who has been granted stock options and still holds them|
|options expiration options expiration||
An options expiration date is the specific date and time that the contract expires.
|original issue amount original issue amount||the amount or quantity offered to the public at the time of original issuance|
|Original Issue Discount (OID) Original Issue Discount (OID)||the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID|
|out of the money out of the money||a stock option is "out of the money" or "under water" when its grant price is above the current market price|
|outlier bid outlier bid||occurs when the bid sourced on a customers’ behalf is not consistent with most recent trade activity or other available pricing information about the security a customer is attempting to sell. It can also be deemed by a third-party dealer to be outside their predetermined parameters.|
|outstanding shares outstanding shares||number of shares that have been issued by the company that are held by the insiders and the general investing public|
|overallotment overallotment||part of the underwriting agreement which, in the event the offering is oversubscribed, allows the issuer to authorize additional shares (typically 15%) to be distributed by the syndicate; also called the green shoe|
|oversubscribed oversubscribed||situation in which investors have expressed an interest in buying more shares of a new security than will be available; under this condition, the price of the security has a greater likelihood of opening higher in the secondary market than is the offering price|
|par par||the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $1,000 for a corporate bond|
|par value par value||the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $1,000 for a corporate bond|
|participant participant||an eligible employee who is taking part in an employer-provided equity compensation plan|
|participation rate participation rate||the extent to which an investor will participate in the potential appreciation or depreciation of an underlying index or basket of securities. Generally a feature of structured products. If the participation rate of the structured product is less than 100%, the investor will realize a return that is less than the return of the linked index or customized basket. For example, if the participation rate is 80%, the investor will receive only 80% of any positive return on the index or basket, assuming no other limits on return potential. The participation rate will vary by product, and factors such as index type, maturity, and caps affect the rate.|
|pay frequency pay frequency||the frequency with which a fixed-income security pays interest (e.g., monthly, quarterly, semi-annually, yearly)|
|per capita per capita||method of distributing assets so that each child receives the same proportion of the total assets; should one child pass away prematurely, the assets are then distributed among the remaining children|
|per stirpes per stirpes||method of distributing estate assets so that each branch of the family (i.e., child and his or her descendants) receives the same proportion of the total assets, regardless of how many members each branch has|
|performance award plan performance award plan||typically, a grant of company shares or units in which the recipient's rights in the shares or units are contingent on the achievement of pre-established performance goals; details of performance awards vary greatly based on company-defined rules|
|pipeline pipeline||supply of new issues that are tentatively scheduled to come to market; pipeline is also referred to as “visible supply”|
|plan document plan document||a client-supplied document that provides a legal description of the plan rules and how the plan functions|
|positions positions||refers to the stock you hold in your account for a particular company; for example, if you hold stock in 2 different companies within your account, you have "2 positions"|
|postponement postponement||when an offering that had a tentative “pricing” date is pushed back in timing to a later date; postponement may occur when market conditions threaten the viability of the offering; extremely adverse market conditions could lead to cancellation of the offering|
|power of attorney (POA) power of attorney (POA)||authority granted to another person to make certain decisions on a person’s behalf; POA authority ends when the person granting authority revokes authority, becomes incapacitated, or dies; durable POA extends authority past the point of incapacitation to the end of natural life|
|preferred stock preferred stock||stocks that pay a fixed dividend; have dividend and asset preference over common stocks, but behind debt in the case of bankruptcy; generally does not come with voting rights; either perpetual (have no maturity) or maturities of 30 years or more; can be callable|
|preliminary prospectus preliminary prospectus||offering document printed by the issuer containing a description of the business, discussion of strategy, presentation of historical financial statements, explanation of recent financial results, management and their backgrounds and ownership; the preliminary prospectus has red lettering down the left-hand side of the front cover and is sometimes called the “red herring”|
|premium premium||if the opening price of an IPO in the secondary market is higher than its offering price, the difference would be the premium|
|premium, fixed income premium, fixed income||the amount above the stated face or par value when a fixed-income security (e.g., a bond) is bought or sold; for example, if a bond's face value is $1,000 and it sells for $1,200, it was sold at a premium|
|pre-refunded bonds pre-refunded bonds||a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs|
|pre-refunded price pre-refunded price||the value, in par terms, at which the security shall be redeemed|
|prevailing market price (PMP) prevailing market price (PMP)||For secondary market bonds and CDs viewable online, PMP is the contemporaneous cost, which is the displayed bid or offer price at which the bond is offered at on Fidelity.com. For secondary market bonds and CDs not viewable online, PMP is calculated based on the inter-dealer market price prevailing at the time of the customer transaction.|
|previous factor previous factor||the previous month’s decimal value reflecting the proportion of the outstanding principal balance of a mortgage security, which changes over time, in relation to its original principal value|
|previous factor effective date previous factor effective date||the date that the previous month’s proportion of the outstanding principal balance of a mortgage security became valid|
expressed as a percentage of the par value for bonds. For example, a price displaying 101.500 means 101.500% of the par value of a bond which is generally $1000. So the price of the bond in this example would be $1,015.00.
for the term 'price' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'.
|price (ask) price (ask)||a proposal by a trading desk or third-party to sell securities at a specified price; offers are infrequently available for municipal bonds and certificates of deposit (CDs) as compared to more liquid fixed income securities, such as U.S. Treasuries and corporate bonds|
|price (bid) price (bid)||a proposal by a trading desk or third-party to purchase securities at a specified price; bids are infrequently available for municipal bonds and certificates of deposit (CDs) as compared to more liquid fixed income securities, such as U.S. Treasuries and corporate bonds|
|price range price range||price range at which the company expects to sell its stock in a public offering; also referred to as “offering range”|
|pricing date pricing date||for a new issue fixed-income security, the date on which the price was set|
|primary country primary country||the country in which the trading market resides, for the primary SEDOL identifier for the bond|
|principal repayment principal repayment||the payment of the face value of a bond or CD by the issuer; this can be due to the securities reaching maturity date, or because the issuer redeemed the securities prior to maturity due to a call or other form or redemption|
|prior business day's close prior business day's close||
this is a fair market value option that means your stock option plan uses your company stock's prior trading day's closing price to calculate the:
- taxable gain
- withholding taxes for nonqualified stock options
- alternative minimum tax (AMT) for incentive stock options
|private foundation private foundation||tax-exempt organization with only a few main contributors, created for the purpose of ongoing charitable giving|
|private placement private placement||investment in a company by a group of private investors—the offering is limited both by the amount of shares or units and the number of investors; recipients receive restricted stock from the issuer|
|privately held privately held||company whose shares have never been offered publicly for sale|
|probate probate||legal process of settling an estate during which the validity of the will is proven, the deceased's assets are collected and accounted for, debts and taxes are paid, and remaining probate estate assets are distributed|
|probate inventory probate inventory||listing of all assets and liabilities related to the deceased's estate|
|provision provision||a portion of a bond's covenant that determines certain characteristics about the bond, such as the conditions under which it can be called or redeemed by the issuer, or the rate and price at which it can be converted into common stock (if applicable)|
|purchase date purchase date||company-determined date after the offering period where your company takes all the money you have contributed through the Employee Stock Purchase Plan and buys as many shares of your company stock as possible; sometimes this is done at a discount, depending on company rules|
|purchase price purchase price||the price paid to purchase the company's stock through the Employee Stock Purchase Plan on the purchase date|
|put options put options||
The buyer of put options has the right, but not the obligation, to sell an underlying security at a specified strike price. Essentially, that means if you were to buy put options on XYZ stock, for example, you would have the right to sell XYZ stock at an agreed-upon price, up and until a specific date.
|puttable bond puttable bond||a type of bond that gives the holder with the right to require an issuer to repurchase the bond, allowing the holder to purchase a higher coupon bond with the proceeds received from exercising the put option; puts can generally be exercised on pre-determined dates; customers are encouraged to read the prospectus to understand the type of put feature and any associated limitations|
|qualified domestic trust (QDOT) qualified domestic trust (QDOT)||trust structured to allow the surviving spouse of a non-U.S. citizen to benefit from the marital estate tax exclusion in the deceased spouse's estate|
|qualified personal residence trust (QPRT) qualified personal residence trust (QPRT)||trust whereby the grantor retains the right to live in the personal residence held in trust, with the residence passing to the beneficiaries at the end of the selected term; it may reduce gift and/or estate taxes by taking advantage of the difference in value of the property when it is transferred to the trust versus when it is distributed to the beneficiaries|
|qualified terminable interest property (QTIP) trust qualified terminable interest property (QTIP) trust||trust designed to provide lifetime income to a surviving spouse while transferring the remainder interest to beneficiaries of the grantor's choosing, often used for children from previous marriages; assets in the trust will be included in the surviving spouse’s estate at death|
for bond ladders, this represents the number of bonds or face value of bonds/CDs for that particular issue or rung. Generally, 1 bond equals $1,000 face value.
for the term 'quantity' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'.
|quiet period quiet period||time period in which companies are forbidden by the Securities and Exchange Commission (SEC) to promote or hype the offering; starts the day a company files a registration statement and lasts up to 25 days after a stock starts trading|
|ratio spread ratio spread||
A ratio spread is a multi-leg option trade of either all calls or all puts whereby the number of long options to short options is something other than 1:1. Typically, to manage risk, the number of short options is lower than the number of long options (i.e. 1 short call: 2 long calls).
|real-time price real-time price||
this is a fair market value option, which means your stock option plan uses the market price for the stock at the time your exercise order executes to calculate the:
- taxable gain
- withholding taxes for nonqualified stock options
- alternative minimum tax (AMT) for incentive stock options
|recent trades recent trades||
for corporate, government sponsored enterprises and municipal bonds, you can view recent trade history of a particular issue. On the Results Tables, Depth of Book pop-ups and Bond Details - Analytics page, there is a link to recent trading activity. Click View Recent Trades to view the time, price, yield and quantity of each trade.
Those trades listed include all trading activity occurring in that CUSIP across the US bond markets. In other words, they are not only Fidelity's most recent trades (if at all), or exclusively the trades of Fidelity's customers.
The Buy/Sell row will display one of the following acronyms
For additional information, view the Buy/Sell term in the Recent Trades page.
|recharacterization recharacterization||the process of reversing a Roth IRA conversion, whereby assets and earnings converted to a Roth IRA are converted back to the original IRA from which the assets originated|
|red herring red herring||another name for the preliminary prospectus; the offering document printed by the issuer containing a description of the business, discussion of strategy, presentation of historical financial statements, explanation of recent financial results, management and their backgrounds, and ownership|
|redeem redeem||the act of an issuer calling, or purchasing a fixed-income security from the holder, generally at face value, prior to the stated maturity date; the bond indenture can provide details on possible redemptions|
|redemption redemption||the act of an issuer calling, or purchasing a fixed-income security from the holder, generally at face value, prior to the stated maturity date; the bond indenture can provide details on possible redemptions|
|redemption price redemption price||the stated value of an investment at maturity when redeemed - typically at maturity or when called. For bonds and certificates of deposit (CDs), price is provided in terms of a percentage of face value or "par". For example, if you own 5 bonds, where each bond equals $1000 in face value with a redemption price of 100.00 then the Redemption Principal would be $5,000.00. 5 bonds x $1,000 x 100% = $5,000.00|
|registration registration||procedure by which a company who would like to go public files a registration statement with the SEC which contains a description of the company, its management, and its financials; the material is reviewed by the SEC for its completeness, amount of disclosure, and its presentation of accounting information before the SEC declares the registration effective, which allows it to be traded to the public|
|reopening—treasury issues reopening—treasury issues||
Additional amounts of a previously-issued security re-auctioned, or "reopened," during a Treasury auction. Reopened securities have the same maturity date and interest rate as the original securities, but a different issue date, and usually, a different price. The price of a reopened security is determined at auction. If the price of the reopened security is greater than its face value, the purchaser has to pay a premium.
Regardless of the reopened security's price, purchases may have to pay accrued interest, the interest the security earned from its original issue date or most recent coupon date until the second auction date. Accrued interest is paid back to the investor in their first semiannual interest payment.
|required minimum distribution (RMD) required minimum distribution (RMD)||
mandatory, minimum yearly withdrawals that generally must be taken starting in the year the accountholder turns 72, upon retirement, or at death
|reset frequency reset frequency||how often the coupon rate will adjust for a stepped or variable rate security|
|restricted stock award (RSA) restricted stock award (RSA)||a grant of company stock in which your rights to the stocks are restricted until the award vests, also known as a lapse in restrictions; once the shares vest, they are deposited into your Fidelity Account® and are yours to hold, sell, or transfer|
|restricted stock unit (RSU) restricted stock unit (RSU)||a grant valued in terms of company stock that is restricted until the award vests; after the vesting requirement is satisfied, your company distributes shares or the cash equivalent|
|revenue bond revenue bond||referring to a type of municipal bond, revenue bonds are secured by revenues generated by the issuer or by certain taxes such as sales, fuel, or hotel occupancy taxes. The only exception is when a municipality issues bonds as a conduit issuer. In those cases, while the municipality is the issuing entity, a third party is responsible for payments of both interest and principal.|
|revocable trust revocable trust||trust that gives one the ability to pass trust assets to beneficiaries without the delay or expense of probate, but over which the ability to change or terminate during one's lifetime is retained (also known as living trust)|
Rho describes an option's sensitivity to a change in interest rates.
|risk factors risk factors||considerations that are disclosed in the preliminary prospectus that might materially affect the company’s financials, stock price, or reputation in a negative way|
|road show road show||also called the “dog and pony show,” a tour taken by a company preparing for an IPO in order to attract interest in its securities; attended by potential buyers, including institutional investors, analysts, and money managers by invitation only—members of the media are forbidden to attend|
|rules of succession rules of succession||state intestacy laws that determine which survivor(s) inherit the estate of an individual that died without a will|
|S&P rating S&P rating||
a bond rating system provided by Standard & Poor's (S&P) to rate the quality of bonds based on the rating agency's assessment of the quality of the bonds (e.g., AAA is best quality, A- is a lower quality than AAA, etc.). A rating of BBB- is the lowest S&P credit rating that is still classified as investment grade.
In the S&P Rating field on some search results screens fixed income secondary market offerings (e.g., bond), this field displays the rating or NR, not rated, if Standard and Poor's Corporation has not rated the security.
S&P is a registered service mark of The McGraw-Hill Companies, Inc.
|SEC SEC||Securities and Exchange Commission, a federal government agency that regulates and supervises the securities industry; the commission administers federal laws, formulates and enforces rules to protect against malpractice, and seeks to ensure that companies provide full disclosure to investors|
|secondary market secondary market||a market where securities are bought and sold between investors, as opposed to investors purchasing securities directly from the issuers; secondary market activity generally takes place on a major exchange, such as the New York Stock Exchange, or on electronic communications networks (ECNs)|
|secondary offering secondary offering||public sale of previously issued securities held by large investors, usually corporations or institutions|
|sector sector||refers to the area of the economy from which a corporate bond issuer primarily derives its revenues, such as financial or industrial. Within each Sector are Industry Groups; for example, chemical and petroleum would be Industry Groups under the industrial Sector; the Sector and Industry Groupings are relatively static, although the inventory available within a given Grouping changes subject to market activity; NOTE: There may be cases when certain bonds are not classified, in which case searching by all sectors will yield the most results|
|securities lending securities lending||a practice in which securities are lent to an approved borrower; mutual funds can lend a portion of their portfolio's securities with the intent to earn incremental return for shareholders; income can be earned by fees paid by borrowers and revenue from investing the cash collateral pledged toward the loan|
|SEDOL SEDOL||Stock Exchange Daily Official List – An identification code, consisting of seven alphanumeric characters, that is assigned to all securities trading on the London Stock Exchange and on other smaller exchanges in the U.K.|
|selling concession selling concession||commission paid to brokers to help distribute a public securities offering|
|selling group selling group||group of broker/dealers that helps an underwriting syndicate distribute securities of a public offering|
|settlement date settlement date||date on which an executed trade of securities must be paid for|
|share (stock) share (stock)||a unit of equity ownership in a company|
|share amount share amount||amount of shares the bond or note is convertible into|
|shareholder shareholder||any person who owns shares of a company’s stock|
|shelf filing shelf filing||Securities and Exchange Commission rule which allows a company to register a public offering with the SEC which will be made available for sale at some unspecified future date|
|SIC code SIC code||Standard Industrial Classification is a four-digit code that identifies the sector specific industry that a company is a member of|
|sink defeased sink defeased||termination of certain of the rights and interests of the bondholders and of their lien on the pledged revenues or other security in accordance with the terms of the bond contract for an issue of securities. This is sometimes referred to as a "legal defeasance." Defeasance usually occurs in connection with the refunding of an outstanding issue after provision has been made for future payment of all obligations related to the outstanding bonds, sometimes from funds provided by the issuance of a new series of bonds. In some cases, particularly where the bond contract does not provide a procedure for termination of these rights, interests and lien other than through payment of all outstanding debt in full, funds deposited for future payment of the debt may make the pledged revenues available for other purposes without effecting a legal defeasance. This is sometimes referred to as an "economic defeasance" or "financial defeasance." If for some reason the funds deposited in an economic or financial defeasance prove insufficient to make future payment of the outstanding debt, the issuer would continue to be legally obligated to make payment on such debt from the pledged revenues|
|sinking fund price sinking fund price||The sinking fund price is the price, corresponding to a certain date, at which a given part of the bond issue could be redeemed by the issuer. Note that the issuer may be able to meet its sinking fund commitments by purchasing the bonds on the open market at a price below the quoted price on the schedule.|
|sinking fund protection sinking fund protection||
A sinking fund is a requirement included with certain bond issues, for part of the issue to be repaid on a regular basis before the stated maturity date of the bond. The issuer typically buys back a stated amount of the issue on a specified date—often having the flexibility to buy back from bond holders at the pre-specified price (usually par) or at the prevailing market price, whichever is cheaper.
Like a call feature, sinking fund payments might begin soon after the bond has been issued or they may be deferred for 10 or more years from the date of issue. Consult the sinking fund schedule for this information. Unlike a call feature, however, if an issue has a sinking fund provision, it is a requirement, not an option, for the issuer to buy back the increments of the issue as stated.
If you are considering the purchase of a bond with sinking fund features, be sure to consider (but don't rely on), the fact that a portion of the bonds issued may be returned before the maturity date. For example, even if the issuer has a commitment to buy back 5% of a given issue on a certain date, there is no guarantee that every investor will have 5% of their investment redeemed. The issuer may either purchase the required amount from a small number of institutions or purchase them on the open market.
In some situations, the presence of a sinking fund could be regarded as a positive feature of a bond. It could be perceived as an additional solvency hurdle for the issuer because the issuer must find the necessary funds to return some of the debt issue's principal before the stated maturity date of the bond. Yet for this very reason sinking funds are frequently found on long-dated, lower quality issues. The presence of a sinking fund is not an added guarantee of an investment. In extreme circumstances a bond may be falling in price and the issuer will be able to meet all of its sinking fund commitments by purchasing on the open market. The weaker an issuer becomes, the more likely the bond's price is to fall and the more likely sinking fund commitments can be met by open market purchases.
Sinking Fund Protection refers to a bond that does not have a sinking fund as part of its structure. On the Search Secondary Offerings page, the search criterion for Sinking Fund Protection defaults to Yes, which excludes bonds with a sinking fund feature. Selecting All will include bonds with sinking funds in your search returns.
|sovereign debt sovereign debt||fixed-income securities issued by a national government in that country's local currency; in addition to the credit risks presented by the issue and the issuing country, may also be subject to currency risk|
|special mandatory redemption special mandatory redemption||some types of mandatory redemptions occur either on a scheduled basis (made in specified amounts or in amounts then on deposit in the sinking fund) or whenever a specified amount of money is available in the sinking fund ("sinking fund redemptions"). A specific extraordinary redemption may be triggered by, among other things, bond proceeds remaining unexpended by a specified date (an "unexpended proceeds redemption"), a determination that interest on the bonds is taxable (a "tax call"), a change in use of a project financed with bond proceeds that would cause interest on the bonds to become taxable (a "change in use call"), a failure of the issuer to appropriate funds needed to pay debt service on lease rental bonds or certificates of participation that are subject to appropriation (an "appropriation or non-appropriation call"), or the destruction of the facilities from which the bonds are payable (a "calamity or catastrophe call").|
|special optional redemption special optional redemption||optional redemptions often can be exercised only on or after a specified date, typically for a municipal security beginning approximately ten years after the issue date. The occurrence of certain one-time or extraordinary events specified in the bond contract (an "extraordinary redemption") may trigger an optional (an "extraordinary optional redemption") redemption. An extraordinary optional redemption may be triggered by, among other things, bond proceeds remaining unexpended by a specified date (an "unexpended proceeds redemption"), a determination that interest on the bonds is taxable (a "tax call"), a change in use of a project financed with bond proceeds that would cause interest on the bonds to become taxable (a "change in use call"), a failure of the issuer to appropriate funds needed to pay debt service on lease rental bonds or certificates of participation that are subject to appropriation (an "appropriation or non-appropriation call"), or the destruction of the facilities from which the bonds are payable (a "calamity or catastrophe call")|
|spinoff spinoff||conversion of a subsidiary or division of an existing company into a stand-alone entity|
A spread involves buying one option and selling another (either both calls or both puts). The payoff is based on the difference between the exercise prices. Types of spreads include bull call, bull put, bear call, and bear put. Spreads are limited risk, limited reward options strategies.
|spread to treasury spread to treasury||the difference in yield between the offered yield of the bond you are researching and the yield of its Treasury of similar maturity. The spread is measured in percentage points. For example, if the Ask Yield to Worst on a corporate bond is 2.00%, and the Spread to Treasury of similar maturity is 0.50%, then the underlying Treasury's Ask Yield to Worst is 1.50%. 2.00% - 0.50% = 1.50%|
|Standard & Poor's (S&P) Corporation Standard & Poor's (S&P) Corporation||an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions|
|standard market session standard market session||for equities: 9:30 a.m. to 4:00 p.m. ET when U.S. markets and exchanges (e.g., NASDAQ and NYSE) are generally open for trading; for bonds: 8:00 a.m. to 5:00 p.m. ET, when over-the-counter markets are open for trading (bond trading hours may vary based on marketplace participation)|
|state state||this can refer to either the two-character abbreviation for the state where a driver's license was issued, provided during Fidelity’s Electronic Funds Transfer online setup; or a way to specify the state where bonds are issued when refining a search of municipal bond offerings; for bond ladders, customers can search Fidelity's municipal bond offerings inventory by selecting the state where the bonds are issued to refine their search|
|statutory notice statutory notice||notification that is legally required to be made, usually within a specified period of time|
|stock appreciation right (SAR) stock appreciation right (SAR)||an award that provides the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time|
|stock option stock option||gives you the right, but not the obligation, to purchase the stock of your company at a fixed price (the grant price) for a fixed period of time|
|stock option netting stock option netting||an option to elect to receive shares at the time of exercise to cover the option's cost and required tax withholding; this option will allow you to avoid using any of your own cash during the exercise, and there is no need to sell shares in order to cover costs and taxes|
|stock split stock split||an increase in a corporation's number of outstanding shares of stock without any change in shareholder equity or market value at the time of the split|
|stock swap stock swap||a form of stock option exercise in which you exercise your option to acquire shares of your company stock by exchanging shares of a stock you currently own instead of cash to pay the exercise cost|
|Stop limit Stop limit||Triggers a limit order when a price you've set is reached; it can be used to help manage your potential gains or losses if the security price declines.|
|Stop loss Stop loss||Triggers a market order when a price you've set is reached; it can be used to help manage your potential gains or losses if the security price declines.|
|stop order stop order||stop orders are generally used to protect a profit or to prevent further loss if the price of a security moves against you; they can also be used to establish a position in a security if it reaches a certain price threshold or to close a short position; not all securities or trading sessions (pre- and post-market) are eligible for stop orders|
The straddle options strategy involves either buying a call and a put or selling a call and a put at the same strike sharing the same expiration date. A long straddle is the purchase of a call and a put for a debit. An investor's outlook is that the options market has underpriced the movement from the underlying, but the risk is limited to the debit paid. The short straddle is the sale of a call and a put for a credit. An investor's outlook is that the option market has efficiently priced the movement and the underlying will not exceed the credit received through that time period, and implied volatility will fall during your time horizon. Risk is unlimited to the upside and substantial to the downside.
The strangle options strategy involves either buying a call and a put or selling a call and a put with the same expiration date, but at different strike prices. The long strangle involves purchasing a call and a put, usually both out of the money at a debit. An investor's outlook is that the underlying is going to exceed the break-even for either prior to or by the expiration date. The risk is the debit paid. The short strangle strategy involves the sale of a call and a put, usually both out of the money at a credit. An investor's outlook is that the underlying will not exceed the break-even by expiration, and implied volatility will decrease. The risk is unlimited to the upside and is substantial to the downside.
|strike price strike price||
The strike is the price per share for which the underlying security may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract.
|successor trustee successor trustee||individual named in the terms of a trust to assume the role of trustee should the originally appointed trustee be unable or unwilling to assume or continue in the role; for living trusts, the individual named in the trust to succeed as trustee upon the owner's death|
|survivor's option survivor's option||also known as a "death put," a feature of certain debt instruments allowing for the estate of a deceased investor to "put back" or redeem both principal and interest of that instrument without penalty; CDs or bonds that carry a survivor's option usually redeem for par value when the survivor's option is exercised; partial withdrawal of the owner’s interest is not permitted; the survivor’s option must be invoked by the estate prior to any account re-registrations or transfer; issuers may limit the permissible early withdrawal of CDs or bonds to the FDIC insurance limits (currently $250,000 for each insurable capacity), and/or may limit the amount being put back in a particular time period|
|symbol symbol||an identifier that is used throughout the financial community to identify a security. It is typically used to identify equities, including the ticker symbol for the underlying stock that a convertible security can convert into. Occasionally used as an identifier for exchange traded bonds|
|syndicate syndicate||group of underwriters who assist the lead manager or syndicate manager in distributing a new securities issue|
|syndicate manager syndicate manager||also referred to as the lead underwriter or managing underwriter who, among other things, is in charge of organizing the syndicate and distributing member participation shares to other members of the syndicate|
|tax loss harvesting tax loss harvesting||
Tax-loss harvesting is the practice of selling one or more tax lots (investments in a stock or bond) at a loss to offset capital gains elsewhere in your account. This strategy may also potentially help reduce your tax liability on ordinary income and may improve your after-tax performance.
|taxable estate taxable estate||fair market value of all assets owned by the deceased, minus funeral expenses, debts owed by the deceased, and assets passed to a surviving spouse|
|tax-exempt income tax-exempt income||interest from municipal bonds as well as distributions from mutual funds that qualify as exempt interest dividends; this income is generally not subject to regular federal income taxes; note that Fidelity reports this information to the IRS, and may be required to report the information to tax authorities in California among other states; the total amount or a portion of tax-exempt income (reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to report tax-exempt income on Form 1040, and may be required to report it on your state tax return as well|
|tenants by entirety tenants by entirety||form of joint ownership of an asset by spouses in which both own the asset equally; upon death of one spouse, ownership passes automatically to the surviving spouse|
|tenants in common tenants in common||form of joint ownership of an asset in which ownership can be unequal and one owner's interest can be sold, mortgaged, or willed without the consent of the remaining owner(s); there is no ability to name a beneficiary, so interest in these assets will always fall under the deceased owner's will|
|term term||an indicator of how long a security position or lot was held; possible values are Long: held for more than 1 year; Non-Reportable: lot or position was closed as the result of a transaction other than a sale; no reportable gain/loss was reported, the holding period and resulting term are not reported; Short: held for 1 year or less; and Unknown: Fidelity does not know how long the position or lot was held; this state typically exists because the shares were transferred to Fidelity from another institution and the holding period prior to the transfer was not communicated; for fixed-income securities, this is the period of time from the security's issue date until the maturity date; for example, for a 10-year corporate bond the term is 10 years|
|third-party price third-party price||
depicts a security's price formulated from a third-party vendor's proprietary pricing methodology; to establish this modeled price, a host of factors such as recent trade activity, size, timing, and yields of comparable bonds are used; in the case of a comparable bond, the vendor assigns a "fair market" yield to the security, then extrapolates a representative price based on the fair market yield assigned; in many cases, this modeled price provides price discovery and transparency for bonds that may not have traded for days, months, or even years; understandably, in scenarios where a security hasn't traded recently, attempting to accurately predict the "market price" can be a challenging endeavor; nevertheless, the vendor prices bonds on a daily basis
Note: Given the nature of the modeled pricing provided, it is not accurate to characterize such pricing as a "closing price" or to suggest that the price was based on specific recent (prior day's end of day) trading activity
|third-party providers third-party providers||
Fidelity's fixed income inventory is composed of offerings from Fidelity Capital Markets and other third-party providers.
Fidelity may source bonds directly from national and regional broker dealers or use national and regional broker dealers that are affiliated with Tradeweb (FKA as BondDesk), KCG BondPoint, and The MuniCenter offering platforms.
Note that Fidelity’s combined inventory will generally not represent the universe of outstanding securities of a given bond type.
|TIGRs TIGRs||Treasury Income Growth Receipts; U.S. Government-backed bonds that have been stripped of their coupons and sold at a deep discount; discontinued in 1986 when replaced by treasury STRIPS|
|time in force time in force||
a time limitation that indicates how long an order will remain open
|today's close today's close||
this is one of the fair market value options, which means your stock option plan uses the price for the stock as of the market close on the day your stock exercise order executes to calculate the:
- taxable gain
- withholding taxes for nonqualified stock options
- alternative minimum tax (AMT) for incentive stock options
|tombstone tombstone||advertisement placed in print media that serves as an official advisory of a securities offering having been completed for a company; it lists all the managers and co-managers who participated in the event|
|TRACE eligibility TRACE eligibility||identifies whether security is TRACE eligible or not. Eligible securities are determined by the FINRA and transactions in these securities are reported to the FINRA TRACE reporting engine by Fidelity|
|trades time limits trades time limits||
you can place a time limitation on a stock trade order by selecting one of the following time-in-force types:
- day—this limitation has a default expiration time of 4:00 p.m. Eastern time (ET). You may select your own order expiration time between 10:00 a.m. ET and 4:00 p.m. ET in 30-minute increments (e.g., 10:00 a.m., 10:30 a.m., 11:00 a.m., etc.); if all or part of your order is not executed by the time you've selected for expiration, your order will be canceled
- good 'til canceled—for orders placed on Fidelity.com, this limitation has a default order expiration date of 180 calendar days from the order entry date at 4:00 p.m. ET; you may select your own order expiration date and/or time, up to 180 calendar days from the order entry date; if all or part of your order is not executed by the date and/or time you've selected for expiration, any open portions of your order will be canceled
- fill or kill—requires that the order is immediately completed in its entirety or canceled; fill or kill is used only under very special circumstances; if you do not fully understand how to use fill or kill, talk with a Fidelity representative before placing this limitation on an order
- immediate or cancel—requires that a broker immediately enter a bid or offer at a limit price you specify; all or a portion of the order can be executed; any portion of the order not immediately completed is canceled
- on the open—requires that the order is executed as close as possible to the opening price for a security; all or any part of the order that cannot be executed at the opening price is canceled
- on the close—requires that the order is executed as close as possible to the closing price for a security; all or any part of the order that cannot be executed at the closing price is canceled
|trading flat trading flat||a term applied to bonds that trade without accrued interest, typically due to financial distress; i.e., when a bond trades flat, the buyer is not responsible for paying the seller any interest that has accumulated since the last coupon payment|
|Trailing stop limit % and $ order Trailing stop limit % and $ order||Sets a trigger price which follows the security price as the market moves in your favor; when selling, triggers a limit order once the stock trades at or below your trigger price.|
|Trailing stop loss % and $ order Trailing stop loss % and $ order||Sets a trigger price which follows the security price as the market moves in your favor; when selling, triggers a market order once the stock trades at or below your trigger price.|
|tranche tranche||French word used to describe segments of the IPO being sold in different countries; a multi-tranche distribution is commonly used for large U.S. and foreign IPOs where there is demand both in the U.S. and in their home country|
|transfer on death (TOD) transfer on death (TOD)||a provision of a brokerage account that allows the account's assets to pass directly to an intended beneficiary; the equivalent of a beneficiary designation|
|transfer on death (TOD) deed transfer on death (TOD) deed||legal document that conveys title to a property and has a provision for the transfer of the property to another person or persons immediately upon the death of the owner(s)|
|Treasuries Treasuries||debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and/or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero-coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions|
|treasury auctions treasury auctions||the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single-priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one-month (30 day), three-month (90 day), and six-month (180 day) maturities are auctioned weekly; treasury notes with two- and five-year maturities are auctioned monthly; Notes with three-year maturities are auctioned in February, May, August, and November; treasury bonds with 10-year maturities are auctioned in February, May, August, and November. Treasury Inflation Protected Securities (TIPS) are issued in 5-, 10-, and 20-year maturities and are auctioned in January, April, July, and October|
|treasury benchmark treasury benchmark||the Treasury benchmark is selected as the Treasury bond with a maturity date closest to the bond you are studying. The Treasury benchmarks exclude zero coupon bonds and Treasury Bills|
|Treasury bonds Treasury bonds||debt obligations of the U.S. Government with maturities of 10 years or longer; coupon interest for Treasury bonds is exempt from state and local taxes, but is federally taxable; interest income may also be subject to alternative minimum tax|
|Treasury inflation protected securities (TIPS) Treasury inflation protected securities (TIPS)||a type of Treasury note that adjusts for inflation by providing inflation compensation in addition to the coupon; the inflation component, affecting principal, is based on the Consumer Price Index (CPI), adjusting it upwards for inflation or downwards for deflation; the adjustment impacts semi-annual interest paid and the principal at maturity; since TIPS' principal adjusts semi-annually, the coupon varies as well; at maturity, a TIPS pays the greater of the adjusted or original principal; this provision protects the investor from the loss of any principal in the event of a sustained period of deflation; investors in TIPS sacrifice some yield as a trade-off for the inflation protection; the inflation adjustment is federally taxable on an annual basis, although not paid out until maturity|
|Treasury inflation-protected securities (TRACE) Treasury inflation-protected securities (TRACE)||the Trade Reporting and Compliance Engine (TRACE) is the FINRA-developed vehicle that facilitates the mandatory reporting of over the counter secondary market transactions in eligible fixed income securities; all broker/dealers who are FINRA member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC approved set of rules|
|treasury security treasury security||debt obligations of the U.S. government that are issued at various intervals and with various maturities|
|treasury stock treasury stock||stock a company issues then buys back, at which time it is placed in the company’s treasury, where it earns no dividends and carries no voting privileges|
|trustee trustee||person or institution that is the legal owner of a trust; responsible for managing the assets placed into a trust and otherwise acting according to its terms|
|underwriter underwriter||brokerage firm that raises money for companies using public equity and debt markets; underwriters are financial intermediaries that buy stock or bonds from an issuer and then sell these securities to the public, a process which is highly regulated by the SEC and the National Association of Securities Dealers|
|Uniform Gifts to Minors Act (UGMA) Uniform Gifts to Minors Act (UGMA)||state law that allows adults to contribute to a custodial account in the name of a minor beneficiary without having to establish a trust or name a legal guardian; such funds are irrevocable gifts to the minor and may only be used for the benefit of the minor|
|Uniform Transfers to Minors Act (UTMA) Uniform Transfers to Minors Act (UTMA)||state law that extends the coverage of the Uniform Gifts to Minors Act (UGMA) so that transfers to a custodial account in the name of the minor beneficiary may be simplified; such funds are irrevocable gifts to the minor and may only be used for the benefit of the minor|
|use of proceeds use of proceeds||how the company plans to use the monies it generated from an IPO or secondary offering|
|use of proceeds - fixed income use of proceeds - fixed income||the area or activities to which the funds raised from a municipal bond issue will be directed and, in turn, the source of future bond interest payments and principal repayment; for general obligation bonds, funds raised may be for general purposes, both operating and infrastructure, and payments are secured by the general taxing power of the issuer — usually a state, town, or city; revenue bonds are categorized under terms such as "Utilities" or "Transportation"|
|using implied volatility using implied volatility||
It is important to recognize if implied volatility is relatively high or low, because it helps determine the price of the options contract (known as the premium). Knowing if the premium is expensive or cheap is an important factor when deciding on what options strategy makes the most sense for your outlook. If the options are relatively cheap, it may be better to look at debit strategies, whereas if the options are relatively expensive you may be better served looking for credit strategies.
Vega is a measure of an option price's sensitivity for a given change in implied volatility. An increase in the implied volatility (i.e. the expected volatility) of an option will increase the value of both call and put options, and falling implied volatility decreases the value of both types of options.
|venture capital venture capital||source of money for start-up companies, typically raised by venture capital firms who invest in private companies that need capital to develop and market their products; in return for this investment, the venture capitalists generally receive significant ownership of the company and seats on the board|
|vertical spread vertical spread||
A vertical spread is the simultaneous purchase and sale of options of the same class (i.e. either both puts or both calls) on the same underlying stock with the same expirations, but with different strike prices. A vertical spread involves a tradeoff between sacrificing some reward for reducing risk.
|vesting vesting||this refers to when the participant has earned the right of ownership and the options or restricted stock becomes available to sell; vesting occurs after your company-designated time frame is met (also known as a vesting schedule)|
|vesting schedule vesting schedule||the schedule of when, and to what extent, awards become available based on periods of time (options and restricted stock)|
|volatility volatility||characteristic of a security which rises or falls sharply in price within a short time period|
|wash sale wash sale||the sale of shares at a loss, only to purchase the same or substantially identical security for a lower price within a 61-day period, beginning 30 days before the sale and ending 30 days after the sale, including the date of the sale; for more information, see IRS Publication 550|
|will will||legal document that defines how a person wants his or her assets distributed at death; may name an executor for the estate and guardianship for minor children|
|withdrawal withdrawal||when a company decides to not continue with its proposed offering of securities|
|withholding tax withholding tax||the same taxes withheld from every paycheck: Social Security, Medicare, federal, and local income taxes|
|workout date workout date||based on the current price and call schedule for a bond, this is the date when the bond is most likely to be called or redeemed|
|yield yield||the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close|
|yield curves yield curves||the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA-rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed-income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day|
|yield to maturity yield to maturity||the rate of return an investor receives if an investment is held to the maturity date|
|yield to sink yield to sink||the rate of return to the investor earned from payments of principal and interest, with interest compounded (typically semi-annually) at the stated yield, presuming that the security is redeemed on the next scheduled sinking fund date|
|yield to worst yield to worst||the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if any in-whole mandatory redemptive provisions are exercised by the issuer; partial redemptive provisions (such as sinking funds) are not included in yield to worst calculations; the yield to worst metric is used to evaluate the worst-case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios|
SEC Rule 144 is a means by which restricted and control securities may be sold in compliance with federal law and regulations; Rule 144 requirements depend on who owns the security, the length of time it has been owned, and how it was acquired
Rule 144 applies to the resale of restricted securities as well as to restricted and nonrestricted securities sold by control persons; to sell the security, some or all of these requirements must be met:
- the issuer must be in compliance with SEC reporting requirements
- a holding period of 1 year must be met by the shareholder; however, a control person may sell unrestricted securities without regard to the holding period; volume restrictions still apply
- the amount of stock sold in any 3-month period cannot exceed the volume limitations, which are the greater of 1% of the outstanding shares or the average weekly trading volume for the 4 calendar weeks preceding the filing of a Form 144 notice; a Form 144 notice must be filed in certain transactions
- the stock must be sold in a broker's transaction or a transaction with a market maker; solicitation of purchasers is prohibited
|144K 144K||securities have this restriction if the securities are restricted but the stock owner is not an affiliate of the company, and the securities were acquired from the company or an affiliate of the company more than 2 years ago. Customers can sell this type of stock without having to satisfy most of the requirements of Rule 144|
|145 145||sets forth conditions for selling securities that are the result of an SEC-registered merger or consolidation; non-affiliates are not subject to resale restrictions; affiliates of the selling company who do not become affiliates of the acquiring company are subject to volume restrictions and public information requirements for the first year, but do not have to file Form 144; during the second year, the only requirement is for the company to be current in all SEC reporting; affiliates of the acquiring company must abide by all 144 requirements except the minimum holding period|
|2nd previous factor 2nd previous factor||the month previous to the previous month’s decimal value reflecting the proportion of the outstanding principal balance of a mortgage security, which changes over time, in relation to its original principal value|
|2nd previous factor effective date 2nd previous factor effective date||the date that the month previous to the previous month’s proportion of the outstanding principal balance of a mortgage security became valid|
|529 plan 529 plan||state- or state-agency-sponsored college savings plan that is flexible and offers tax-deferred growth|
|701(g)(3) 701(g)(3)||rule permitting the sale of unregistered securities in the open market, provided that the shares were issued under a company benefit plan or compensation agreement prior to a company going public; an owner of these securities who is not considered an affiliate of the issuer may sell shares under Rule 701(g)(3) without having to satisfy Rule 144 requirements; the shares cannot be sold until 90 days after the company goes public; however, certain Rule 701 paperwork needs to be completed by the stock owner in order to have the restricted legend removed and to release proceeds from the sale; affiliates must satisfy all the requirements of Rule 144, other than the one-year holding period|