Scheme information document is a set of guidelines and rules for all open-ended schemes. This document also contains the risks associated with various mutual fund schemes.
Special Drawing Rights abbreviated as SDR refers to an international monetary reserve created in order to maintain existing reserves of member countries. These countries are affiliated to IMF (International Monetary Fund).
SEBI stands for Securities Exchange Board of India. It is a centralized authority that lays down rules and guidelines on how the stock exchanges dealing with shares and securities need to operate.
Secondary market is a market that deals with buying and selling of shares and securities already owned by the Primary owners. In other words, the stocks and shares have already been subscribed by new shareholders in the primary market and they are sold.
These are mutual funds, stocks or closed ended funds that belong to businesses operating in a particular industry or a specific sector of the economy. For example, Oil Company shares.
Secured Premium Notes or SPN's are financial instruments that come with limited or detachable warranties. These securities are issued only after getting a prior approval from the Central Govt.
Security market is a domain wherein wide-spread buying and selling of shares and securities take place. The market operates based on the demand and supply position of the economy, as such.
Security Transaction tax is a tax that is levied whenever you buy any form of share or security from the stock exchange. The proceeds go to the Central Govt.
The full form for SEK is Swedish Krona which is the official currency of Sweden.
Self-auction is a self-service kind of delivery and settlement of shares adopted by stock exchanges like BSE (Bombay Stock Exchange) or NSE (National Stock Exchange).
Self-certified Syndicate banks are financial institutions which are certified by SEBI (Securities Exchange Board of India). These banks allow investors to participate in the IPO program using (Applications Supported by Blocked Amount) ASBA payment methods.
A Self-regulatory organization or SRO is a centralized authority that lays down rules and guidelines on how stock exchange markets need to smoothly run in the economy. The main aim of the organization is to support the investors' interest by maintaining ethics and fairness in the way, the operations are conducted.
SGD is the full form for Singapore Dollars. SGD is the main medium of currency throughout the state of Singapore.
Short-selling refers to a process wherein the securities do not belong to the seller, as such. It is done under the assumption that the price of the security will go down in the market.
Short-term capital gains are the profits you earn when you sell your shares, securities or bonds within 6 months from the date of purchase. The income you earn on selling your securities within a short tenure of 6 months can attract short-term capital gains tax.
Bond issuing companies maintain a separate fund known as a Sinking Fund account. The deposits of investors are accumulated in the funds. When the company needs to issue funds to many bond-holders at once, it can disburse funds from the Sinking Fund account.
SIP stands for Simple Investment Plan. It is the best form of investment as it lets the investor deposit money in monthly equated installments. He/she can deposit money according to his/her income affordability. Interest is calculated on the amount accrued into the account over a period of time.
Small cap is an acronym used to classify companies that use a smaller amount of capital to start businesses. Short-term companies or start-ups benefit with this type of an investment plan.
SPAN typically stands for Standardized Portfolio Analysis of risk. This is a common investment strategy adopted by stock exchanges to determine the one day risk of traders' accounts.
A speculator is a trader who invests in shares, securities, futures or derivatives for a higher than average risk. This is in anticipation to higher than average profits.
Spot price refers to the current price at which a share is bought or sold in anticipation to receive immediate payments or affect instant delivery.
Corporate entities employ a strategy of letting consumers pay for their products or appliances by taking standing instructions for automatic debit from the bank account. Every month, the said money will be debited from the person's account.
Statement of Additional Information or SAI is another portion of the prospectus that contains additional information about the fund. SAI also contains info on how the fund will operate in the market.
Statutory payments or dues refer to payments that need to be paid to the Govt., statutory bodies or other regulatory authorities. These can take the form of various types of taxes people remit to the Govt.
Stock split is an investment strategy wherein the board of directors issue the outstanding shares amongst current shareholders. This strategy is implemented when there are more outstanding shares lying at the stock exchange.
Stop loss order is a protective strategy employed by traders to minimize their losses on buying and selling of shares or securities. A stop loss order gives a privilege to the investor to sell a share or security when it reaches a specific price.
Strangle is a strategy adopted by investors plying at the stock markets. The investors club call and put options on the derivative or security with different strike prices.
Strategic asset allocation is a process wherein set targets are placed upon different classes of assets including shares, derivatives and bonds. The prices are then re-balanced to their original allocation, end of the year.
A derivative is specifically priced using a strike price. This price is however stated in the contract in which it is exercised.
When shares are proposed to be issued by a company at its IPO (Initial Public Offering), shareholders block the shares even prior to the issue date. These shares are blocked as 'Prioritized Subscription'.
Subsidies are benefits given to the citizens or members residing in a particular economy. The subsidies are provided by the Govt. either in the form of price-cuts on products or tax saving benefits.
Swaps are financial instruments or derivatives usually shared by two parties. These can take the form of shares, securities, commodities, futures and lot many.
Systematic transfer plan or STP refers to an investment scheme wherein the investor deposits a lump-sum in a particular scheme and transfers either a fixed or variable remittance to another scheme.
Systematic Withdrawal Plan or SWP refers to a privilege given by mutual fund companies to shareholders. These refer to specific pay-outs either quarterly, half-yearly or annually.