The Letter S

Same-store sales-in retail, sales at stores open at least a year. A company could have growth from new stores but sales in existing stores are considered a more accurate indicator of growth.

Savings Bonds-U.S. government bonds that are sold to individuals. Series E bonds were sold from World War II until 1979. Today, Series EE, series H and I bonds are sold. The yield on Series EE is adjusted every six months on May 1 and on November 1. Series EE bonds have a 3-month interest penalty if they are not held for at least 5 years. They can be sold after six months. Series EE bonds come in 8 denominations from $50-$10,000. Further information and a helpful savings bond calculator can be found at U.S Savings Bonds Online.

Scripophily-the study or collection of security certificates for their rarity, rather than for their worth as a security. The document’s price would be based on its physical beauty and/or the historical importance of the issuer. The certificate could have an added value if it contains a rare signature. If you want to check to see if one of your old certificates still has value visit R.M. Smythe, Prudential American Securities Inc or Stock Search International. You might want to try to check in Moodys on your own because these companies could charge a fee for the research. If you are wondering if your certificate does have value as an antique visit the International Bond and Share Society, Washington Historical Autograph and Certificate Organization or the New York Gift Exchange .

Secondary distribution (offering)-this is when a block of previously issued securities are sold in a public offering outside of the normal exchanges and markets. The ones that are selling the securities do this because it is unlikely than the market could absorb such a large quantity by the usual methods. The sellers are usually insiders, corporations or institutions. This transaction is different than both an IPO and a primary distribution (offering) because in those cases the seller is the issuing corporation. Investment bankers usually handle all three of these types of offerings. A secondary does not bring in any cash for the corporation that originally issued the stock. A secondary also does not dilute the stock because it does not increase the number of shares outstanding. A secondary will increase the float if the shares sold came from insiders or if restrictive shares are sold. A security will usually be less volatile after a secondary.

Shares Outstanding-the shares of a corporation's stock that have been issued and are in the hands of the public.

Short Selling-borrowing shares of stock from a broker and then selling them on the open market. This is a bet that the price will decline and that the shares you return can be bought back at a lower price. Many securities are not suitable for short selling because they do not have enough activity. This transaction must take place in a margin account. When you buy the shares back, this is called covering the short.

Short Squeeze-situation when prices of a stock starts to move up sharply and many traders with short positions are forced to buy stocks in order to cover their positions and prevent losses. This sudden surge of buying leads to even higher prices, further aggravating the losses of short sellers who have not covered their positions.

Snorkelers-"stock options, now underwater, at tech companies that went public with wildly optimistic business plans." (This was taken from Smart Money July 2001 p28)

Spousal Consent Form-this is when one if of your buddies asks if you want to go out to the ballpark & you say you have to check with your wife. At that point your buddy knows that you need a spousal consent form.
Also, many 401(k) plans require a spousal consent form if you plan on taking a withdrawal or a loan. Plan rules might say that you need this signed only if you are married. Sometimes singles also need to sign it to verify that they are not married. This form is also known as a Marital Status Certification form & in many cases it might have to be notarized.

Stencil-this is usually referring to how a retail brokerage account is titled. By titled, we refer to not only the name but also if it is a joint account, single account etc. Stencils are important because there are restrictions on transfers between accounts when the stencils do not match. For example, some one could not just move money from a joint into a single account unless the other party signs a LOA. Also, when you sign documentation it is compared to the stencil. If the stencil was in the name of J. Henry Smith; you might not be able to sign John H. Smith or Henry Smith.

Updated 1/6/02