Author: SEC

FINRA rules define a “day trade” as the purchase and sale, or the sale and purchase, of the same security on the same day in a margin account.  This definition encompasses any security, including options.  Selling short and purchasing to cover a position in the same security on the same day is also considered a… Continue reading DAY TRADE

Unless an investor specifies a time frame for the expiration of an order, orders to buy and sell a stock are “Day” orders, meaning they are good only during that trading day.  Day orders that do not execute during regular trading hours expire and will not automatically carry over into after-hours trading or the next regular trading… Continue reading DAY ORDER

Data tagging, in formats like XBRL or “eXtensible Business Reporting Language,” is gaining popularity as a way to enhance financial reporting. By using computer codes to “tag” different kinds of data in financial reports, the information companies file with the Commission can be made much easier to find and analyze. For example, specific items in… Continue reading DATA TAGGING

The ratio of the interest rate payable on a bond to the actual market price of the bond, stated as a percentage. For example, a bond with a current market price of $1,000 that pays $80 per year would have a current yield of 8%.

Cumulative voting is a type of voting system that helps strengthen the ability of minority shareholders to elect a director. This method allows shareholders to cast all of their votes for a single nominee for the board of directors when the company has multiple openings on its board. In contrast, in “regular” or “statutory” voting,… Continue reading CUMULATIVE VOTING

Provide their opinion on the creditworthiness of a corporate or government borrower by issuing a grade, or credit rating, on bonds issued by that borrower.

The interest rate on a bond. It is expressed as a semi-annual rate.

The dollar amount of interest paid to an investor. The amount is calculated by multiplying the interest of the bond by its face value.

A feature of a bond that denotes the amount of interest due and the date that the payment will be made.