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Small Caps |
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Stocks or funds with smaller
capitalisation. They tend to be less liquid than
blue chips, but they tend to
have higher returns. |
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Soft Commissions |
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A means of paying brokerage
firms for their services through commission revenue,
as opposed to normal payments. For example, a
mutual fund may offer to pay for the research
of a brokerage firm by executing trades at the
brokerage. |
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Sovereign Debt |
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A debt instrument guaranteed
by a government. |
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Special Situations
Investing |
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Strategy that seeks to profit
from pricing discrepancies resulting from corporate
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event transactions such as mergers
and acquisitions, spin-offs, bankruptcies or recapitalisations.
Type of event-driven strategy. |
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Specific Risk |
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Risk that affects a very small
number of assets. This is sometim es referred to as "unsystematic
risk."
An example would be news that is specific to either one
stock or a small number of stocks, such as a
sudden strike by the employees of a company you have shares
in or a new governmental regulation
affecting a particular group of companies.
Unlike systematic risk or market risk, specific risk can
be diversified away.
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Spin Off |
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A new, independent company created
through selling or distributing new shares |
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for an existing part of
another company. Spinoffs may be done through a rights
offering. |
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Sponsors |
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Lead investors in a fund who supply
the seed money. Often the general partner in a hedge fund. |
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Spread |
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1) The difference between the bid
and the offer prices of a security or asset.
2) An options position established by purchasing one option
and selling another option of the same class, but of a
different series |
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Standard Deviation |
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Tells us how much the return on
the fund is deviating from the expected normal returns. |
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