F-G-H Glossary of Terms Stocks/Options/Fixed Income
fair market price
A reasonable price for securities based on supply and demand
fast market
An informal way to describe Market Centers capable of producing automated quotations (or fast quotes) and providing immediate automatic executions. A fast market also immediately indicates when its quotation for an individual stock is a manual quotation (or slow quote).
financial futures
Futures contracts based on financial instruments such as U.S. Treasury bonds, CDs and other interest-sensitive issues, currencies and stock market indicators.
floating-rate bond
Bond having a coupon that changes periodically based upon changes in another, usually short-term, interest rate, such as Treasury bills or LIBOR (London Inter-dealer Broker Overnight Rate)
floor
The open space where the trading of listed stocks and bonds takes place on the New York Stock Exchange (NYSE).
floor brokers
A floor broker, acting as agent, traditionally executes orders to buy or sell stocks on behalf of a client. Sometimes a floor broker may represent his or her firm’s proprietary account. “Direct access” to the market through floor-based, registered representatives of NYSE member firms also has become a very important function of NYSE floor brokers.
futures
A contract specifying a future date of delivery or receipt of a certain amount of a specific tangible or intangible product. The commodities traded in futures markets include stock index futures; agricultural products like wheat, soybeans and pork bellies; metals; and financial instruments. Futures are used by business as a hedge against unfavorable price changes and by speculators who hope to profit from such changes.
Futures Industry Association (FIA)
An association representing organizations that have an interest in the futures market. FIA has more than 180 corporate members.
general mortgage bond
A bond that is secured by a blanket mortgage on the issuing company's property, though it may be outranked by one or more other mortgages.
give-up
A member of the Exchange that trades on behalf of a second member by executing an order for him with a third member. The first member tells the third member that he is acting on behalf of the second member, and "gives up" the second member's name rather than his own.
going public
When a company sells shares of itself to the public to raise capital.
good 'til cancelled (GTC) order
An order to buy or sell a stock at a specific price that remains in effect until it is executed or the investor cancels the order. Also called an Open Order
government bonds
Obligations of the U.S. Government, regarded as the least risky, highest-grade securities issues. The major types of debt instruments issued by the U.S. government are: Treasury Bills, Saving Bonds, Treasury Notes, and Treasury Bonds
growth stock
Shares of a company known for a history of rapid earnings growth. Most growth stocks do not pay dividends because management reinvests earnings to feed the growth.
guaranteed bonds
Bonds whose principal and interest payments are guaranteed by another entity, such as a parent company guaranteeing the debt of subsidiary to increase the credit worthiness of the issue.
hedging
The purchase or sale of a derivative security (such as options or futures) in order to reduce or neutralize all or some portion of the risk of holding another security.
high yield bond
Non-investment grade bond. Defined as an issue with a rating equal to, or below, a Standard & Poors rating of “BB”, a Moody’s rating of “Baa2“ or an equivalent rating of another NRSRO. See also Junk Bond.
holding company
A corporation that owns a large number of shares in other companies. Holding companies use the voting rights that come with their shares to exert influence over the companies under them.
hypothecation
The pledging of securities as collateral for example, to secure the debit balance in a margin account.
