The execution and clearing of orders by one member of a stock exchange for the account of another member. For example, investment dealer A is a small firm whose volume of business is not sufficient to maintain a trader on the exchange. Instead, investment dealer A gives its orders to investment dealer B, a larger organization which is a member of the exchange, for execution. Investment dealer A pays a reduced percentage of the normal commission.
Archives
Junior Corporation
A young company in the early stages of operations and growth.
Junk Bonds
Corporate bonds with poor credit ratings.
Large-Cap
Company with market capitalization greater than $8 billion.
Last Sale Price
For a Market On Close (MOC)-eligible security, the last sale price equals the calculated closing price. If the MOC closing price acceptance parameters are exceeded, it equals the last board lot sale price of the security on the exchange in the regular trading session.For any other listed security, the last sale price equals the last board lot sale price of the security on the exchange, in the regular trading session.
LEAP
A long-term put or call option (as long as three years).
LEAPS (Long-Term Equity Appreciation Participation Securities)
LEAPS are stock options that have expiration dates that extend beyond one year.
Leveraged Buy Out
Take over of a public corporation using borrowed funds.
Intangibles
Soft assets such as patents, trademarks, etc.
Interest Coverage
A measure of a company’s ability to pay interest on its debts (operating income divided by interest expenses).