AON (All or None Order)

A limited price order that is to be executed in its entirety or not at all (no partial transaction). AON orders are not shown on the specialist’s book because they cannot be traded in pieces. Therefore, they will not show …

Assets

Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company’s balance sheet or an individual’s net worth statement.…

Basis Point

One-hundredth of a percentage point (0.01%).…

Best Efforts Underwriting

Best-Efforts Underwriting
A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to …

Bid

The highest price a prospective buyer is willing to pay for a particular security.…

Book Value

The amount of net assets belonging to the owners of a business (or shareholders of a company) based on balance sheet values.…

Bought Deal Underwriting

Bought Deal Underwriting is a type of underwriting where the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the …

Call Option

An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.…

Capital

To an economist, capital means machinery, factories and inventory required to produce other products. To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets.…

Capital Gain or Loss

Profit or loss resulting from the sale of certain assets classified under the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property.…