Special Terms

Orders which must trade under special conditions. For example, a cash order will be settled sooner than the usual three-day settlement period.

Non-Net Order

A special-term order when there is a clear understanding between the buying and selling parties that they will settle the trade directly with each other.

Stock Dividend/Distribution

A dividend/distribution paid in securities of the same issue or a different issue of the same issuer or another issuer. A stock dividend/distribution can be used as a means to list a new issuer. The issuer or its representative provides the amount, payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement.

Reverse Stock Split

This is where a company reduces the number of outstanding shares by decreasing the number of available shares and combining their value into the fewer shares. This has the effect of increasing the stock’s par value. This is often used by companies whose stock is about to be delisted from an exchange because of its low price.

Gain-on-sale accounting

A company estimates the future profitability of a trade made today and books a profit today based on the present value of those estimated future profits.

Speculator

Someone prepared to accept calculated risks in the marketplace for attractive potential returns.