American Depositary Debenture (ADD)

A debt based facility allowing the issuance of a security similar in style to an equity depositary receipt but backed by debt securities placed into trust in the issuers home market.

American Depositary Debenture (ADD)

A debt based facility allowing the issuance of a security similar in style to an equity depositary receipt but backed by debt securities placed into trust in the issuers home market.

American Depositary Share (ADS)

A share that is issued to an investor evidenced by a depositary receipt, representing the underlying ordinary share trading in the issuer's home market.

American Stock Exchange (AMEX)

The nation's second largest floor-based exchange, the American Stock Exchange has a significant presence in common stocks, index shares and equity derivatives. The exchange was founded more than 100 years ago. Its members own "seats" on the exchange, entitling them to transact business on the trading floor.

Bad Delivery

A situation where the registrar rejects a request to transfer ownership so the transfer is not registered.

Basis Point

One hundredth of one percent (0.01%).

Bear

A person expecting a decline in prices: someone who is bearish.

Bid Ask Spread

See Bid Offer Spread

Bid Offer Spread

The difference between the bid price and the offer price of a security.

Bid Price

The price at which a market maker bids to buy shares. It is usually lower than the offer price at which they will sell shares.

Blue Chip

A phrase used to describe shares of the highest quality and lowest risk.

Bonus Issue

Also known as a scrip issue, a capitalization issue, a free issue or a gratis issue. It is the issue of new fully paid shares in a company to existing shareholders for free on a pro-rata basis to existing holders.

Capital

Stockholders' equity in a company.

Capitalization

Calculated by multiplying a company's outstanding shares by the per share market price (market cap, market capitalization).

Cede and Co

Nominee name for the Depository Trust Company.

CHAPS

Funds transfer system used in London to move Sterling. Clearing House Automated Payments Systems.

CHIPS

US funds transfer system that settles daily on a net basis via Fedwire.