The main securities market in Sweden, the Stockholm Stock Exchange was founded in 1863. In 1997, it joined the NOREX alliance, a group that also includes the stock exchanges of Oslo, Copenhagen and Iceland, as part of an effort for the Nordic exchanges to attract greater international investment through a common trading platform and streamlined regulations. Taobiz explains Stockholm Stock Exchange (STO) .ST In 1998, the Stockholm Stock Exchange merged with OMX. In 2007, it changed its name to OMX Nordic Exchange Stockholm AB. At the time of writing, it is held by the Nordic division of NASDAQ OMX, the world's largest exchange holding company. The exchange trades in equities, premium bonds, retail bonds, convertible loans, subscription rights, exchange-traded options and warrants. One of its major indexes is the market-value-weighted OMX Stockholm 30, which tracks the 30 most-traded stocks.
1. In the context of mergers and acquisitions, the exchange of an acquiring company's stock for the stock of the acquired company at a predetermined rate. Usually, only a portion of a merger is completed with a stock-for-stock transaction, with the rest of the expenses being covered with cash or other payment methods. 2. A method of satisfying the option price in an employee stock option compensation scheme. Under these compensation programs, employees are granted stock options but must pay the company the option price before they are given the grant. By exchanging mature stock (stock that has been held for a required holding period), the grantee can receive his/her options without having to pay for them. After a given time period, grantees are given back the stock they used to pay for their options. Taobiz explains Stock-For-Stock 1. For example, in order to satisfy the expenses of an acquisition, an acquiring company may use a combination of 2 for 3 stock-for-stock exchange with shareholders of the target company and a tender offer of cash. 2. Where possible, grantees often take advantage of a stock-for-stock exchange, as they usually increase a grantee's ownership position and require no cash outlay. Non-employee shareholders argue that stock-for-stock option price satisfaction adds to the already high expense of granting employees options, as the employees end up not having to pay the option price, which can add up to be a significant amount of cash if all employees granted options take advantage of stock-for-stock exercises.
A unique series of letters assigned to a security for trading purposes. NYSE and AMEX listed stocks have three characters or less. Nasdaq-listed securities have four or five characters. If a fifth letter appears, it identifies the security as other than a single issue of common stock. They are also known as "ticker symbols". Taobiz explains Stock Symbol The fifth letter of the ticker symbol of a Nasdaq listed stock can prove very helpful in finding out the history of a company. For example, if there is a "E" as the fifth letter, you know that the company has had previous trouble with their SEC filings.
A stock whose value is a reflection of expected future potential (or favorable press coverage) rather than its assets and income. Taobiz explains Story Stock An example of a story stock is a biotech company that expects test results for a cancer treatment. The stock would trade higher because of the expectation of good results.
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. Also known as a "stop order" or "stop-market order". Watch: Stop Loss Order Taobiz explains Stop-Loss Order Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making. It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.
An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better. Watch: How Do Limit Orders Work? Taobiz explains Stop-Limit Order The primary benefit of a stop-limit order is that the trader has precise control over when the order should be filled. The downside, as with all limit orders, is that the trade is not guaranteed to be executed if the stock/commodity does not reach the stop price. A stop order is an order that becomes executable once a set price has been reached and is then filled at the current market price. A limit order is one that is at a certain price or better. By combining the two orders, the investor has much greater precision in executing the trade. Because a stop order is filled at the market price after the stop price has been hit, it's possible that you could get a really bad fill in fast-moving markets. For example, let's assume that ABC Inc. is trading at $40 and an investor wants to buy the stock once it begins to show some serious upward momentum. The investor has put in a stop-limit order to buy with the stop price at $45 and the limit price at $46. If the price of ABC Inc. moves above $45 stop price, the order is activated and turns into a limit order. As long as the order can be filled under $46 (the limit price), then the trade will be filled. If the stock gaps above $46, the order will not be filled.
The owner of a stock that can't be sold. The term stuckholder has a negative connotation, usually because the value of the stock is dropping and circumstances prevent the owner from liquidating the position. Taobiz explains Stuckholder The Securities and Exchange Commission (SEC) can suspend trading on a stock to protect investors or the public. For example, if a company does not file the correct reports in a timely and accurate manner, the SEC can put a hold on trading for up to 10 days. once trading resumes, the stock tends to automatically fall in value due to the uncertainty associated with the violation. Stuckholders are stuck with this position when trading is suspended, even though they know that the value of the stock will drop.
Stock in a company that is over-leveraged as a result of recapitalization. Taobiz explains Stub Stub stock is very speculative and risky. Stub stock's advantage over junk bonds is that it has unlimited potential if the company turns things around.