A nonprofit corporation created by an act of Congress to protect the clients of brokerage firms that are forced into bankruptcy. Members to the SIPC include all brokers and dealers registered under the Securities Exchange Act of 1934, all members of securities exchanges and most NASD members. |||SIPC is an insurance that provides brokerage customers up to $500,000 coverage for cash and securities held by the firm (although coverage of cash is limited to $100,000).
A financing option developed to help biotechnology companies access capital that could be used to finance new or ongoing research and development projects by establishing a separate entity. Thefinancing received through outside investors gives thebiotechnology company the needed capital in exchange for giving the investors partialrights to the outcomes of the R&D projects they are funding. |||The SWORD isa separate entity that isconnected to the outside investors and the biotech company through several legal obligations. Investors are usually institutional investors or wealthy individuals looking to capitalize on the latest technology. The investors are hoping to benefitfrom thewarrants on the common stock of the biotech company and partial rights to the technology developed from the project.Biotech companies benefit from a SWORD by being able to develop projects they would otherwise be unable to afford. Also, being able to use outside investors reduces the risk put on current shareholders. Using SWORDs allows companies to minimize the effects of R&D spending on the firm's bottom line.
A set of accounting regulations prescribed by the National Association of Insurance Commissioners for the preparation of an insuring firm's financial statements. Filings prepared using SAP are submitted to individual state regulatory bodies; SAP are regarded as more regulatory and conservative than the GAAP method of preparing financial statements.
A type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset's price. The upper band is created by adding a value of the average true range (ATR) - a popular indicator used by technical traders - to the moving average. The lower band is created by subtracting a value of the ATR from the SMA.Upper STARC band = SMA + ATR*Lower STARC band = SMA - ATR** The average true range (ATR) is generally multiplied by a user-specific multiplier factor before being added/subtracted from the SMA.|||Most traders use a move toward the upper band to signal an increased probability that the price will pull back toward the moving average, and a move toward the lower band as a signal that the price may head back higher. Other traders believe a move beyond the bands signals an increase in momentum. STARC bands generally use a six-period moving average, and the average true range factor is usually multiplied by two before being added/subtracted from the SMA.This indicator is similar in calculation and interpretation to Bollinger Bands. STARC is an acronym for Stoller Average Range Channels. The indicator is named after its creator, Manning Stoller.
A standard series of four-digit codes created by the U.S. government in 1937 for categorizing business activities. In 1997, the use of SIC codes was replaced in most (but not all) capacities by a six-digit code called the North American Industry Classification System (NAICS). |||The codes are used to promote better communication across business sections and between countries. One major government department that still uses SIC codes is the Securities and Exchange Commission (SEC). The SIC codes are listed in a business's electronic data gathering, analysis and retrieval system (EDGAR) filings in order to indicate the industry to which the company belongs. For example, if you see that a company has a 3721 SIC code on its EDGAR filing, this means that the company belongs to the aircraft industry.
A financial services company that rates stocks and corporate and municipal bonds according to risk profiles. Additionally, Standard & Poor's produces and tracks the S&P indexes and publishes a variety of financial and investment reports.
1. Also referred to as a "bankruptcy-remote entity" whose operations are limited to the acquisition and financing of specific assets. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt. 2. A subsidiary corporation designed to serve as a counterparty for swaps and other credit sensitive derivative instruments. Also called a "derivatives product company." |||Thanks to Enron, SPVs/SPEs are household words. These entities aren't all bad though. They were originally (and still are) used to isolate financial risk. A corporation can use such a vehicle to finance a large project without putting the entire firm at risk. Problem is, due to accounting loopholes, these vehicles became a way for CFOs to hide debt. Essentially, it looks like the company doesn't have a liability when they really do. As we saw with the Enron bankruptcy, if things go wrong, the results can be devastating.
An open market operation in which the Bank of Canada purchases securities that are repurchased by the seller the following day. This is designed to lower overnight interest rates and increase the money supply.|||In a SPRA, the Bank of Canada buys securities from a chartered bank and agrees to sell them back to the bank the next day. Because selling these securities requires the Bank of Canada to spend some cash, the money supply is increased and this helps decrease overnight interest rates. This is essentially an expansionary move by the Bank of Canada on the monetary system.