|Back | Print|
A calendar spread, also known as a horizontal spread or a time spread, is created by the simultaneous purchase and sale of two options of the same class (i.e., call or put) and strike price, but with different expiration dates. Calendar spreads can be either bullish or bearish, and can be established either for a credit or a debit. The month closest to the time at which the spread was initiated is called the "front month," or "near term" option; the other month is the "back month" or "deferred" option. If a trader is long on the deferred option, the calendar spread is considered "long." If the trader is short on the deferred option, the trader is said to be "short." The price of a calendar spread reacts to changes in underlying stock price, time until expiration, changes in implied volatility levels in both months, interest rate, and dividend structures.Calendar Spread Maximum Return
In an S&P Options Report, this is the potential percentage return for the position if the short term option is In The Money at expiration and the longer-term option retains its time value.Calendar Spread Minimum Return
In an S&P Options Report, this is the percent return for the position if the stock expires above the short call, assuming both options are exercised at expiration.Call
With a call option, the buyer has the right to buy shares of the underlying security at a specific price for a specified time period.
In the context of equity options, a call option gives the buyer the right to buy shares of the underlying security at a specific price for a specified time period.
In the context of fixed income securities, the call feature gives the issuer of the security the right to redeem the issue at or after a certain date, usually at a pre-announced price.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.Call Amount Due
The amount of cash or securities you must deposit into your account to cover a margin or day trade call.
The balance shown is updated as of the previous business day's close. The updated balance reflects the revaluation of the account due to market activity (e.g., increase in the value of positions you hold) and transactions (e.g., cash or securities you may have deposited).Call Ask Price
The price a seller requests for the sale of a call option. This is the most an investor should pay for the option.Call Bid/Ask Mean
This number is calculated by finding a simple average of the market maker's bid and ask price for call options only.Call Date, Call Schedule
A specified date when a bond that can be redeemed before the scheduled maturity may be redeemed by the issuer.
Under the Call Schedule, the upcoming dates the bond could be called, and their corresponding prices for which the bond may be called, are listed in chronological order.Call 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.Call Month
The month during which the call option expires.Call Premium
The difference between the price at which the issuer may redeem a bond when called and the face value of the bond. For example, if the issuer calls a bond with a face value of $1,000, but pays $1,200 for the bond, the call premium would be $200.Call Price
The price the issuer will pay for a bond if the issuer redeems a bond before maturity.
Under the Call Schedule the upcoming call prices corresponding to a given Call Date are listed in chronological order.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/Put
Indicates whether an option is a call or a put.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.Calls Due Today
Any house, exchange, federal, or day trade call balances that you must settle today by depositing additional money or securities into your account. You generally have four business days from the date a call is issued to settle a house, federal, or day trade call. You generally have 48 hours to settle an exchange call. However, Fidelity reserves the right to meet margin calls at any time prior to the stated due date.Call Strike Price
The price at which the owner of an option can purchase (call) the underlying stock. Used interchangeably with striking price, strike, or exercise price.Call Symbol
The symbol of the contract that grants the purchaser the right to buy an underlying equity at a certain strike price. An option symbol is comprised of three parts. The first one-to-three letters are the root symbol for the option. The second-to-last letter stands for the expiration month of the contract. The last letter in the symbol represents the strike price of the contract. Corresponding Put and Call symbols for the same strike price will have the same last letter in their symbols.Call Type
The party that issued a margin or day trade call because you did not meet the minimum equity requirements set forth by one or more of these parties. The party can be the Federal Reserve (Federal), an exchange (Exchange), or Fidelity (house).Called Bonds
The formal redemptive event associated with a bond that the issuer is permitted to redeem before the stated maturity at a specified price, usually at or above par, by giving notice of redemption in a manner specified in the bond contract. In the case of zero coupon bonds, the call will be effected at equal to or greater than the compounded accreted value.Cancel and Replace Order Number
The unique number Fidelity assigns to an attempt to cancel and replace an open order. This number displays on the Confirmation screen.
The date an order was canceled.
An order that has been canceled at your request or due to restrictions you placed on the execution of the order.
Cancellation Order Number
The unique number Fidelity assigns to an attempt to cancel an open order.
This is an order status indicating that you placed a request to cancel an open order, but the order has not yet been canceled.
This is an order status indicating that a request you placed to cancel an open mutual fund order has successfully executed and the order is canceled.
Cap is best understood as a limit on one's upside gains. If the cap on a structured product is 30%, but the underlying reference asset appreciates by 50% over the relevant term of the structured product, the customer realizes a maximum gain of 30% on initial invested principal. In this example, if the initial invested principal is $1,000, the customer receives $1,300 at maturity subject to the credit risk of the issuer or guarantor.
As the value of the securities in a portfolio increases, a fund's share price increases, meaning that the value of your investment rises. Generally speaking, if you sell shares at a higher price than you paid for them, you make a profit, or capital gain. If you sell shares at a lower price than you paid for them, you'll have a capital loss. See also Dividend and Capital Gains.
Capital Gain Distributions
The dollar amounts that are paid to you or credited to your account by mutual fund investments or real estate investment trusts (REITs).
This is earnings from the sale of a security at a higher price or cost basis than the original purchase price. Also, a specific long-term objective for many mutual funds.
Capital Gains Tax
This is a tax on profits from the sale of certain capital assets such as securities and real estate.
This is a negative return on an investment resulting from the sale of certain capital assets such as securities at a lower price than the original purchase price or cost basis.
Capital Spending, 5-year Growth Rate (%)
This is the compound, annual growth rate of capital spending for a company over the last 5 years. Capital spending is the sum of the capital expenditure items found on the statement of cash flows.
A trade type indicating that a trade order to buy will be paid for in cash, not by borrowing on margin.
As a balance, the amount collected and available for immediate withdrawal. This balance includes both Core Money Market and other Fidelity Money Market funds held in the account. This balance does not include deposits that have not cleared. Proceeds from sell orders are reflected in this balance on settlement date.
On the Transfer Money screen, this is the amount of cash that you want to transfer to another account. The amount you enter must follow these rules:
Cash & Other Category
A mutual fund asset allocation theory that includes net cash, short-term securities, and any other securities (such as options) not included in other asset allocation categories.
Cash Available to Buy Securities
The amount available to purchase securities in a cash account without adding money to the account. Buy orders will reduce this value (at the time the order is placed), and executed Sell orders will increase this value at the time the order executes.
Cash Available to Withdraw
The total amount of cash available for immediate withdrawal from Core Money Market and other Fidelity Money Market funds held in the account. See also Available to Withdraw.
Cash Covered Put
A short put position in a cash account that is secured by setting aside cash equal to 100% of the exercisable value of the put contract(s).
Example: Short 1 Put XYZ 50
Cash set aside: $5,000 = 1 (qty) x 100 (multiplier) x 50 (Strike Price)
Cash Covered Put Reserve
The value required to cover a short put option contracts held in a cash account. Cash Covered Put Reserve is equal to the options strike price multiplied by the number of contracts purchased multiplied by the number of options per contract (usually 100). ). Cash Available to Buy Securities, Cash Available to Withdraw, and Available to Withdraw values will be reduced by this value.
A Cash Credit is an amount that will be credited to (positive value) the Core at trade settlement.
A Cash Debit is an amount that will be debited to (negative value) the Core at trade settlement.
Cash Debit for Legal Hold
Restricted securities have a legal hold placed on them and will display a market value on the positions page but won't be included as part of the total account value. Securities are restricted if the they were acquired in the following manner:
Delivery vs. Payment (DVP) and Receipt vs. Payment (RVP) accounts are established by institutions and, to a lesser extent, individuals. With DVP/RVP accounts, customers place orders through their Fidelity accounts, and the trades settle through designated custodial banks. After a trade executes, National Financial Services LLC a Fidelity Investments company, contacts the custodial bank who then sends either cash or securities as appropriate. Customers do not keep any positions at Fidelity. Their assets are held at the custodial bank. During a DVP/RVP transaction, there are periods of time during settlement when a change in market value will display for a security on Fidelity.com. With changes in market activity, after the transaction Fidelity will adjust your account valued based on the position and your debit or credit balance to ensure an accurate total account value for your account.Cash (Debit or Credit) for When Issued Stock
When an account holds a when-issued stock, a settlement date hasn't been identified. Your account will show a market value for that stock, but the account has not been debited for the purchase. A debit or credit balance will be adjusted on the positions page to show your total account value. The cash available and money market amounts may be overstated in your account until settlement has taken place. Review your account for these holdings before placing other trades.
Cash Flow Per Share, TTM ($ per share)
In a Company Profile, this value is the trailing 12 month cash flow divided by the training 12 month (TTM) average shares outstanding. Cash flow is defined as the sum of income after taxes minus preferred dividends and general partner distributions plus depreciation, depletion, and amortization.
Cash Liquidation Distributions
Cash distributions made by corporations that were partially or completely liquidated.
Cash Market Value
For College Savings Plan accounts, this is the total value of all units held in the account as of the date and time displayed.
The amount of cash you hold after an order to exercise and sell stock options executes and after the exercise cost, commissions, fees, and any taxes that are due as a result of the order have been deducted.
Cash Proceeds Desired
For stock option exercise transactions, this is the estimate of the amount of cash dollars that will result by performing an exercise transaction through the stock option calculator tool. This estimated cash proceeds desired amount does not include commissions or fees.
Cash Spread Reserve
The requirement for spread positions held in a retirement account. For debit spreads the requirement is full payment of the debit. For credit spreads, it's the difference between the strike prices or maximum loss. A $5,000 minimum equity deposit is required in addition to the debit or credit requirement.
Cash Surrender Value
The Cash Surrender Value is the current contract value less any surrender charges that would be applied if you withdrew the full contract value on the as of date disclosed. Withdrawals in the first five years of the contract may be assessed a 2% surrender charge. Please see the prospectus for additional details.
The Cash Surrender Value after the five year surrender period is equal to the Contract Value of the annuity.
The dollar amount of Cash trades that have executed today and those orders that are currently unexecuted. A reduction in this value (which corresponds to an increase in Cash Available to Buy Securities) can be achieved by cancelling or replacing open Buy orders or transferring money into the account.
See Certificate of Accrual on Treasury Securities (CATS) or Treasury Income Growth Receipts (TIGRS).
Certificate of deposit: inflation protected have their principal amount adjusted periodically to reflect changes in inflation. If prices (as measured by CPI) have risen 3%, the principal amount of the investment will also increase by 3%.
Central Rung Months
The tool will calculate the spacing between maturities (rungs) when you indicate the number of years you would like the ladder to run and then decide on the number of rungs wanted. Central Rung Months are spaced equally across the life/length of the ladder by dividing the number of months between the first and final maturity dates by the number of rungs selected. The Bond Ladder tool first searches the Central Rung Months to find bonds that meet your selected criteria, such as sorting by highest or lowest yield.
If bond(s) are found in the Central Rung Month, one would be selected according to the other preferences chosen by the user. If the tool cannot find a bond in the Central Rung Month it will search two months either side of the Central Rung Month to find the next best available bond from these months. Use the View Alternatives feature to see all the bonds identified within the total five month period (the Central Rung Month and two months on either side of the Central Rung Month) for each rung.
Certificate of Deposit (CD)
A debt instrument issued by commercial banks or thrifts to raise funds for business activities or to retire other debt. Fidelity offers a type of certificate of deposit called a brokered CD. CDs issued by FDIC-insured institutions and held in Fidelity accounts are generally insured up to $250,000 per account owner/per institution for non-retirement accounts and up to $250,000 per account owner/per institution aggregate limit for depository assets held in qualifying retirement accounts. Additional information can be found on the FDIC website.
Certificate of Accrual on Treasury Securities (CATS)
See also Treasury Income Growth Receipts (TIGRS).
A zero coupon bond "manufactured" from zero-coupon Treasury bonds. Despite their different names, they are essentially the same type of instrument, which is a zero coupon bond "manufactured" or "stripped" from Treasury bonds.
CATS and TIGRS were created by investment banks in the 1980s before the Treasury's own zero-coupon bonds arrived by buying coupon-paying Treasury bonds, holding them in escrow, and issuing equivalent value CATS and TIGRS
Generally, CATS and TIGRS offer the same potential benefits as other zero-coupon bonds, such as the ability to purchase a bond at a deep discount to its maturity value. CATS/TIGRS do not offer US Government backing, and therefore have some degree of risk.
This is one of the following depending on the type of security:
The change in dollars from the close from the previous night.
Change % Down
Daily percent move down in a stock or index.
Change % Up
Daily percent move up in a stock or index.
Change $, Change %
The change (in dollars or percentage) from the previous day's closing stock price.
Change from Day Close
The change in a stock's price from the standard session close price to the Order Book's last price.
If the amount is preceded by a plus sign, (+) the last price is better than the standard session close. If the amount is preceded by a minus sign(-), the last price is worse than the standard session close.
Change From Standard Session Close
This information displays as part of an Extended Hours quote. This is the change in a stock's price between the last[tick] price shown for the standard market session and the last[tick] price shown for the Extended Hours session.
Comparing the moving last[tick] price and change shown in the Extended Hours quote section to the closing last[tick] shown in the standard session quote section may indicate an upward or downward trend in the stock's price in the Extended Hours session.
Change In Market Value
The effect of market action on the value of an account or portfolio.
Change in Securities Not Priced Today
The Change in Securities Not Priced Today total displays a sum of price changes for securities that have not yet, or will not be, updated today. For each position that has not changed price today, the previous recorded change (often the difference between the previous two business days’ closing prices) is reflected in the Change Since Last Close. The sum of all Change Since Last Close dollar values for positions that have not changed price today is reflected in Change in Securities Not Priced Today.
Keep in mind that the price of mutual funds is not updated until after market close, and that the prices of fixed income securities may not be updated daily. The Change in Securities Not Priced Today total reflects the most recent available changes in value for these positions, presented as a total to keep you up to date on how these positions are performing. Today’s Change provides a price change total for all positions whose prices have been updated today.
During pre-market hours, weekends, and holidays, the Change in Securities Not Priced Today will continue to display the cumulative total of changes in stocks, options, mutual funds and bonds from the most recent business day’s market closing until the next market opening. Once the market opens again, Change in Securities Not Priced Today will be refreshed to reflect only the changes for positions that have not had any price updates that day.
Change Since Last Close
The change since last close is the dollar amount and percentage change up or down, from the previous day's closing stock price.
Change Since Purchase
The difference, in both dollar amount and percentage, between a security's current value and its value when you purchased it.
Refer to Charts below.
A feature that displays historical price charts for securities you specify by entering a trading symbol.
Checking Account Number
This is a bank checking account you want to use with the Electronic Funds Transfer service. After the Electronic Funds Transfer service is established, you will be able to transfer between the specified bank checking account and your Fidelity account.
This number is shown on the bottom of a check from your account and on your bank account statements.
This is the number shown in the upper-right hand corner of a check. You enter a check number when adding Fidelity Electronic Funds Transfer online to eligible Fidelity accounts using the setup screen.
The check number is only used to verify your bank checking account. It is not processed or cashed. As a result, you can use a canceled, voided, or your next available check.
An abbreviation for central investment positions. Mutual funds, ETFs, and individual securities invested broadly across various areas of the stock and bond markets.
The date the security was sold (or covered for a short position).
This is the final price of a stock at the end of the most recent trading day.
Closed Positions for Year
An option that is available on the Closed Positions screen. The option controls the year for which closed positions are displayed.
You can select either the current or prior calendar year.
Note:Closed positions information is only available for non-retirement brokerage accounts; it is not available for Mutual Fund accounts.
Closing Market Value
The total cash value of the shares or option contracts you own.
The value is calculated using the closing price and the number of shares or option contracts you own.
The collar spread, also called a "fence," is the simultaneous purchase of an out-of-the-money put and sale of an out-of-the-money covered call. Under normal circumstances, the protective put and covered call comprising the collar share the same expiration dates, but have different strike prices. A covered call is sold on a share-for-share basis against the underlying stock. For example, for stock XYZ currently trading at $50, buying 100 shares of XYZ, selling an XYZ 55 call, and buying an XYZ 45 put creates a collar. The trader is protected if the stock drops below the strike price of the put, and forfeits any profits should the stock rise above the strike price of the call. Traders who are moderately bullish on an underlying stock, but lacking strong conviction, often employ collar spreads. The strike price of the call determines the degree of bullishness of the strategy. The further the call moves out-of-the-money, the more bullish the strategy becomes.
Rules: The strike price of the put must be less than the strike price of the call option with the same expiration date.
Example: Long 1000 XYZ at 120
Short 10 Call XYZ 125
Long 10 Put XYZ 115
The total number of settled shares you own for a security as of the date and time displayed.
College Savings Plan
529 College Savings Plan.
Combination Spread (Combo)
A multi-leg option strategy involving the purchase of a call and a sell of a put or vice versa.
The selling or transfer costs of a trade or transaction.
A feature you use to calculate the estimated commission or concession for a trade order.
The commission rate for a trade varies depending on a number of factors (e.g., type of security, number of shares purchased, commission schedule that applies to the account, etc.) which are detailed in Fidelity commission schedules.
The commission rates that apply to transactions in a brokerage account.
For BrokerageLink accounts, the commission schedule is set per agreement with the plan sponsor.
Select the following for information on Fidelity commission schedules for:
Committed to Open Orders
The dollar amount allocated to pending orders that have not yet been executed (for example, buy orders and short sale orders). The amount you have Committed to Open Orders decreases your Buying Power or your Cash Available to Buy Securities. This amount plus the dollar amount for Today’s Executed Transactions combine to make up Buying Power Used or Cash Used.
Securities that represent units of ownership in a public corporation.
Common stock owners usually have voting rights when it comes to selecting directors and in other matters, and they may benefit from receiving dividends on their holdings or by selling the stock at an increased price. But, in the event of liquidation in a company, creditors and bond and preferred stock holders take precedence over the claims of common stock holders.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
Common Stock (REIT)
A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. A REIT is required to invest at least 75% of total assets in real estate and distribute 90% of their taxable income to investors.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
Illiquidity is an inherent risk associated with investing in real estate and REITs. There is no guarantee the issuer of a REIT will maintain the secondary market for its shares and redemptions may be at a price which is more or less than the original price paid. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry.
Links to most recent company news. News is made available by an independent, third-party news provider.
A Company Profile is provided by an independent, third-party company and displays a one-page summary for a company's stock.
The Company Profile is provided by Market Guide Inc., an independent, third party provider.
A method of sale chosen by an issuer, requesting underwriters to submit a firm offer to purchase a new issue of municipal securities. The issuer awards the municipal securities to the "winning" underwriter or syndicate presenting a bid complying with the terms of a Notice of Sale that provides the lowest interest rate cost according to stipulated criteria set forth in the Notice of Sale. The underwriting of securities in this manner is also referred to as a "public sale" or "competitive bid."
The per-bond trading charge levied during a secondary market fixed-income security transactions, applied as per-bond markup or markdown to the purchase or selling price.
A restriction on the execution of an order. Not all conditions can be used with all types of orders. Available conditions include:
Also known as a "flat butterfly" or an "elongated butterfly," a four-leg spread. In a long call condor spread, there is a long call of a lower strike price, one short call of a second strike price, one short call of a third strike price, and a long call of a fourth strike price. Each call has the same expiration date, and the strike prices are an equal distance apart.
This is an option on the Open Indications of Interest screen. This screen displays all open indications of interest that you have submitted for new issue fixed-income securities (e.g., bonds) offered by Fidelity. This option displays for new issues that have been priced and for which you must submit a confirmation to be eligible for an allocation of bonds.
Only new issue corporate bonds and Fixed Rate Capital Securities require confirmation. You must confirm your indication of interest on the date and during the time period specified for the offering. Fidelity will send you this information as an alert by e-mail or pager.
Note that confirming an indication of interest does not guarantee that you will be allocated securities.
The unique number identifying a trade order or Fidelity Electronic Funds Transfer request.
This is a column that displays on the Open Indications of Interest screen. This screen displays all open indications of interest that you have submitted for new issue fixed-income securities (e.g., bonds) offered by Fidelity. Certain new issue fixed income securities require confirmation of one's indication of interest.
You will see the option to Confirm after the fixed-income security specified in your indication of interest has been priced and if it requires confirmation.
Conservative Long-Term Asset Allocation
Half bonds and T-Bills, half domestic equity. Indexes in this benchmark are the Dow Jones U.S. Total Stock Market Index (14%), MSCI EAFE (6%), Barclays Capital U.S. Aggregate Bond Index (50%), and 3-Month T-Bill (30%).
A contingent order is an order that executes when triggered by an outside event, like the achievement of a stock price or index level. Additional trigger values include daily volume, daily percentage changes, 52 week high, 52 week low, last trade, bid and ask.
A redemption of bonds that may occur at any time after the initial call date upon any required notice.
This is the date on which an annuity becomes effective. This date is in the documentation you receive when you purchase an annuity.
The highest price at which an option contract has traded during its life.
The lowest price at which an option contract has traded during its life.
This is the Fidelity assigned annuity number under which investment options are held.
This refers to the status of an annuity contract. The status of a tax-deferred annuity can be the following:
The status of an income annuity can be the following:
The Contract Value is the current market value of your annuity. For Variable Annuities, this value will fluctuate based on market performance and withdrawals. For Fixed Annuities, the contract value is the current value of your annuity reflecting interest earned and any withdrawals.
The amount of new money that you contribute to your Fidelity IRA on an annual basis. You can make a contribution online using Fidelity Electronic Funds Transfer.
For information on annual contribution limits, use the IRA EvaluatorSM which can be found under the Investment Products tab Retirement option on Fidelity.com.
Contribution Tax Year
This is the calendar year for which you want to make a contribution to your Fidelity IRA.
For information on annual contribution limits, use the IRA EvaluatorSM which can be found under the Investment Products tab Retirement option on Fidelity.com.
You can make a contribution for the current tax year from January 1 of the current tax year until your tax filing due date, not including extensions, generally April 15 of the following year. As a result, contributions made from January 1 to your tax filing due date, not including extensions, generally April 15, could be for the current or the prior tax year and you must specify the tax year for which the contribution is being made.
If April 15 falls on a Saturday, Sunday, or a legal holiday, your tax filing due date is the next succeeding day which is not a Saturday, Sunday, or legal holiday.
Note: Generally, from April 16 to December 31 of any year, the Fidelity Electronic Funds Transfer entry screen for IRA contributions displays the current tax year only. This is because you can generally only make a contribution for the current tax year during this period.
Control or Restricted Loan
A margin loan which is secured by control or restricted securities.
This is a section on the portfolio and account analysis screens. On the Control Panel, you can select options to:
All percentages and values also include the underlying securities in pooled investments such as mutual funds. For example, investments in foreign stocks held by a mutual fund are included in the percentage and value of foreign equities.
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 144 documentation and comply with Rule 144 when selling control securities.
An options trading arbitrage strategy in which a customer takes a long position in an underlying stock and offsets that holding with the simultaneous purchase of an at-the-money put and sale of an at-the-money call with the same expiration. The two options create a synthetic short stock, and the customer holds parallel long and short positions. The strategy is meant to take advantage of overpriced options, and the profit is made in the premium difference between the call and the put.
Rules: The strike prices of the put and the call options must be equal.
Example: Long 1000 XYZ at 120
Short 10 Call XYZ 120
Long 10 Put XYZ 120
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.
The date until which the convertible end date feature is available.
Convertible bonds covering short calls and short common stock.
Rules: Before pairing can occur, the securities must be converted into the quantity they represent for the underlying security using the specific conversion ratio for each one. After conversion, if the total strategy requirements are greater than the naked requirements, the hedge should not be used.
A measure of the curvature of the relationship between bond prices and yields. It is typically used in conjunction with duration, to approximate the rate of change in a bond's price given a change in interest rates. Convexity can be used to improve the estimate of the percentage price change obtained using duration, particularly for a large change in interest rates.
Mathematically, it is the first derivative of modified duration and the second derivative of price with respect to yield.
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.
A packet of information sent from a server to a browser (e.g., account registration verification information, order confirmation number, etc.).
The account where cash awaiting investment or withdrawal is held in your account. This account is used for all of your brokerage transactions.
This account may also be called your Core money market or Fidelity cash account.
Core Money Market
Account settlement position for trade activity and money movement. Executed Buy orders and cash withdrawals will reduce the Core, and executed Sell orders and cash deposits will increase the Core.
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 Bond New Issues
A debt instrument that you can buy directly from the issuer usually at face value through Fidelity. Generally, corporate bonds are taxable, have a specified maturity, and have a face value of $1,000 with subsequent investments in $1,000 increments. Coupon interest is paid according to a coupon rate set at the time the bond is issued.
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.
Correlation is a statistical measure of how movement in one market reflects movement in another. The measure ranges from a -1 to +1 (or from -100% to +100%), with a measure of +1 indicating that the two markets move together 100% of the time. A high correlation between two markets means that they will move in a similar fashion; however, the magnitude of their moves may not be identical. A measure of +0.5 reflects two markets moving together approximately 75% of the time, a reading of 0.0 reflects the two markets moving together only 50% of the time, while readings of -0.5 and -1.0 reflect two markets that move together 25% and 0% of the time respectively.
By contrast, a correlation coefficient measure uses positive numbers to show the degree of positive relationship between two markets and negative numbers to show the degree of negative relationship between two markets. A zero indicates that there is no relationship between the two markets being compared.
Correlation studies sometimes reveal superior trading characteristics in comparison with more traditional hedges.
Measures that show the validity of a comparison to a benchmark index based on the historical relationship between portfolio returns and index returns. See R2. See also Volatility Measures.
Position cost as represented by the total cost of purchases or exchanges (including commissions).
The amount is adjusted for previous sale activity and options proceed adjustments (for assignments and exercises).
Note: Cost information on retirement accounts does not reflect your tax basis that may result from nondeductible or after-tax contributions.
Cost information on retirement accounts is not provided for tax reporting purposes.
Historically, at Fidelity, cost basis in retirement accounts, has not included dividend reinvestments or capital gains. This calculation is being changed. Beginning in September 2011, positions in retirement accounts will be recalculated to include reinvested dividends and capital gains. This change will be phased in over time. All accounts will be converted to the new calculation by the end of 2012.
In a taxable account, cost basis is generally the original amount paid for shares of a security or proceeds from a short sale, including the amount of reinvested dividends and capital gains, plus or minus certain adjustments. Not all basis adjustments may be reflected. Cost basis is used to determine the capital gain or capital loss of an investment when shares are sold.
For Annuity Contracts, this is the total remaining portion of all the Investments that were made into a non-qualified annuity.
Cost Basis Per Share
The amount you paid per share for a security when you first purchased it (or proceeds per share for short sale transactions). When you update cost basis information online, cost basis per share is calculated based on the lot quantity and total cost basis for lot. Cost basis per share may include fees and commissions paid at the time of purchase, and therefore may not equal the acquisition price per share.
Note: Fidelity-provided estimated cost basis, realized gain and loss, and holding period information may not reflect all adjustments necessary for tax reporting purposes. Taxpayers should verify such information against their own records when calculating reportable gain or loss resulting from a sale, redemption, or exchange. Fidelity does not report such information to the IRS or other taxing authorities and is not responsible for the accuracy of such information taxpayers may be required to report to federal, state, and other taxing authorities. Fidelity makes no warranties with respect to, and specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds. For securities other than open-end mutual funds and unless otherwise specified, Fidelity determines cost basis at the time of sale based on the first-in, first-out (FIFO) method. Customers should consult their tax advisors for further information.
The origin of the cost basis information for a position. Possible values:
Cost of Grant
The total cost of an award, which is the grant price multiplied by the quantity of shares or units awarded.
Cost of Unit
The total cost of a unit, the unit price multiplied by the quantity of shares or units awarded, or the per-unit cost.
The amount you paid for your grant (if any).
Cost Per Unit
For restricted stock units, the amount you paid for your units (if any).
For multi-leg options, the dollar amount each leg of a multi-leg option trade would cost. This is the cost of the strategy based on the net amount paid or received. The margin requirements for any strategy may be higher than the actual cost
Cost Previously Provided
The indicator of whether or not you provided the cost and acquisition date of these shares. Possible Values:
Note: You may update cost information in either case.
Coupon, Coupon Interest
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.
Identifies how a bond's coupon is structured during the life of that security. Examples are Fixed, Variable, Step, etc
The frequency with which a fixed-income security pays interest (e.g., quarterly, semi-annually, yearly). See also payment schedule
A bond's annual interest rate, expressed as a percentage of the bond's face value.
In a covered call, also known as a covered-write or buy/write, a customer sells, or "writes," a call option against a long stock position. By writing an option, the customer receives a cash credit. If a customer sells calls against an existing position, the strategy is called a covered-call or covered-write. If the customer purchases the underlying stock and sells calls against it simultaneously, the strategy is called a buy/write.
Rules: Long stock and short calls on same stockExample: Long 1000 XYZ at 100
An option contract that is backed by the shares of the underlying stock.
An options strategy in which an investor writes a put option and simultaneously holds a short position in the underlying stock.
Rules: Short stock and Short Puts on same stockExample: Short 1000 XYZ at 50
See Reference CPI.
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.
Loans, bonds, charge–account obligations, and open-account balances with commercial firms.
A fund's selection of individual bonds; bond selection.
An options strategy consisting of the buying and selling of options on the same underlying stock, in which the credit from the sale is greater than the cost of the purchase, resulting in a credit at the time of entry into the strategy. In a credit spread, the credit received from entering the position is the maximum profit achievable through the strategy.
Rules: A credit spread consists of either all calls or all puts on the same underlying with the same expiration date.Examples: Calls – Short call strike is lower than the long call strike
Credit Watch (S&P)/Watchlist (Moody's)
The reevaluation of the credit quality of an issuer's debt obligations by a credit rating agency. Both look at the potential direction of a short- or long-term rating. When the credit quality of a firm's debt has deteriorated and may be downgraded that credit watch will be negative. The rating agency may also place the issuer's debt obligations on a positive credit watch if its credit quality shows marked improvement. A credit is removed from either list when the rating is upgraded, downgraded or confirmed. Rating changes may occur without the ratings having first appeared on CreditWatch.
Cumulative Return shows how much your investments grew or declined — in total – over a multi–year period. For example, if a $100 investment returned 10% the first year and 10% the second year, its cumulative return over the entire time period would actually be 21%, taking compound interest into account as illustrated below:
Cumulative Total Return
Cumulative total return reflects actual performance over a stated period of time.
The trading currency for a security. For example, USD for United States dollars.
Market Gain/Loss refers to the amount of gain/loss caused by the change in price, in local currency, of the security. Currency fluctuation refers to the amount of gain/loss caused by the fluctuation in the exchange rate.
For a closed position in a security, the formulas that we used to calculate these two amounts are:
Market Gain/Loss = (Exchange Rate on the trade date of purchase x Proceeds in local currency) – US Dollar Basis
Currency Fluctuation = Total Gain/Loss in US Dollars - Market Gain/Loss
For an open position in a security, the formulas that we used to calculate these two amounts are:
Market Gain/Loss = (Exchange Rate on the trade date of purchase x Last Price in local currency) – US Dollar Basis
Currency Fluctuation = Total Unrealized Gain/Loss in US Dollars [or Change Since Purchase in US Dollars] – Market Gain/Loss
The risk that shifts in foreign exchange rates may undermine the dollar value of overseas investments.
The current amount of cash or securities with a market value of a specific amount that you must deposit into your account to cover a margin or day trade call.
If you have not completely covered a call, this amount may still be lower than the original amount if you have made a deposit into your account or the market value of securities held in margin in your account has increased. The balance must be covered by the due date.
For employee stock purchase plans this amount represents the accumulated payroll deductions.
The breakdown of an annuity contract's investment options by percentage. The percentages are current as of the date displayed, and only balances are displayed.
Current Cash Credit/Debit from Unsettled Activity
For a credit balance from unsettled activity, this is the amount that will be added to your core account on the settlement date. For a debit balance from unsettled activity, this is the amount that you must deposit into your brokerage core account by the settlement date. This amount includes the cash credit or debit from unsettled activity as of yesterday's close, as well as today's activity.
Current Contract Year
Your first Contract Year begins with the issue date of your contract and ends one year later. Every year, your Contract Year will begin with the same day (May 3, for example). It is important to be aware of your Contract Year and not withdraw more than the Annual Guaranteed Withdrawal Amount in a contract year. Your current Annual Guaranteed Withdrawal Amount is based on the contract year and not the calendar year.
The dollar amount or percentage that you are currently withholding for stock purchases during the current period.
Current Account Balance (Credit Card)
Current account balances appear on your Snapshot Screen and reflect any transactions posted to your account since the previous statement was closed. It will also reflect any temporary authorizations on your account.
The dollar amount allocated to each position within the basket.
Current Estimated Value
This is a section on the Stock Option Summary|Vesting Schedule and Details screen. In this section, estimated values for exercisable options, unvested options, and total options display.
Estimated values are calculated using the previous business day's closing price minus the grant price, multiplied by the depicted field (e.g., exercisable options, unvested options, etc.) or zero, whichever is greater. The actual value at exercise may vary.
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.
Monies paid during the period an investment is held. Examples include bond interest and stock dividends.
Current Investment Style
This refers to the following depending on the type of security:
Current Margin Credit/Debit Balance
For a margin credit balance, this is the amount due to you for margin activity in your account. For example, you sell shares held in margin in your account. Until the trade executes, the proceeds from the sale are part of your total margin credit balance. Once the trade settles, the proceeds are moved to the core account money market balance. For a margin debit balance, this is the amount you owe Fidelity for margin activity in your account. For example, money borrowed to buy securities or for cash withdrawals is added to the margin debit balance. This amount includes the margin credit or debit balance as of yesterday's close, as well as today's activity.
Current Market Value
For basket trading, the real-time last trade price multiplied by the number of shares. For bonds, the amount a willing buyer will pay for a bond today, which may be at a premium (above face value) or at a discount (below face value).
Current Offering Period Dates
The list of the offering periods in which you have participated in an Employee Stock Purchase Plan.
Current Payroll Deduction
The dollar amount or percentage that you are currently having withheld for stock purchase during the current period.
Current Payroll Elections
The percent amount that you are currently having withheld for stock purchase during the current offering period.
The current market price of a stock.
Current Quarter (MMM YY)
The earnings per share for the current quarter. Earnings per share is a portion of a company's profit allocated to each outstanding share of common stock, the amount a company earned divided by the number of shares outstanding. This includes:
For bonds and other fixed income securities where the coupon rate changes over time the current rate refers to the prevailing rate used to calculate the next coupon payment.
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 Ratio (MRQ)
In a Company Profile, this is the ratio of total current assets for a company's most recent quarter divided by the total current liabilities for the same period.
The number of shares allocated to each position within a basket.
Current Short Credit/Debit Balance
Short credit and short debit balances include the previous day's closing price and today's activity.
Current Sold Call Bid Price
The price at which a buyer is willing to buy an option or a stock. This is the most you may receive for the option.
The number of shares allocated to each position within a basket.
Current Total Basket %
The percentage of the total basket that a position represents.
A security's quantity multiplied by the price at which that security is currently trading.
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 5 percent coupon pays $50 per year, or a current yield of 5 percent. The same bond, if purchased at a discount price of $800, would have a current yield of 6.25 percent. A $1,000 bond purchased at a premium price of $1,200 would have a current yield of 4.1 percent.
The nine-character alphanumeric identifier used to identify a U.S. or Canadian security.
Stocks of companies whose business prospects are tied to economic cycles. For example, steel companies often do poorly in a recession, when consumers are buying fewer large items such as cars and refrigerators.