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Santa Claus Rally |
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The rise in US stock prices
that sometimes occurs in the week after Christmas,
often in anticipation of the January effect. |
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Secondary Market |
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A market in which an investor
purchases an asset from another investor, rather
than an issuing corporation. A good example is the
London Stock Exchange. All stock exchanges are part
of the secondary market, as investors buy securities
from other investors instead of an issuing company. |
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Sector Fund |
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A mutual fund whose objective
is to invest in a particular indus try or sector
of the economy to capitalize on returns. Because
most of the stocks in this type of fund are all
in the same industry, there is a lack of diversification.
The fund tends to do very well or not well at all,
depending on the conditions of the specific sector. |
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Securities |
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General name for all stocks and
shares of all types. |
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Securities Lending |
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When
a brokerage lends securities owned by its clients to short
sellers. This allows brokers to create additional revenue
(commissions) on the short sale transaction. |
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Semi-gilt |
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A financial instrument through
which a municipality or parastatal (owned or controlled
wholly or partly by the government) borrows money from
the public in exchange for a fixed repayment plan. |
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SICAV |
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SICAV stands for Societe D’Investissement
a Capital Variable. It is a Luxembourg incorporated company
that is responsible |
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for the management of a mutual
fund and manages a portfolio of securities. The share
capital is equal to the net assets of the fund. The units
in the portfolio are delivered as shares and the investors
are referred to as shareholders. SICAVs are common fund
structures in Luxembourg. |
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Sharpe Ratio |
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A ratio developed by Bill Sharpe
to measure risk-adjusted performance. It is calculated
by subtracting the risk free rate from the rate of return
for a portfolio and dividing the result by the standard
deviation of the portfolio returns.The Sharpe ratio tells
us whether the returns of a portfolio are because of smart
investment decisions or a result of excess risk. The Sortino
Ratio is a variation of this. |
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