All or nothing The bidder or offeror is only interested in buying or selling the total number of shares displayed on the Trading Board and does not wish the order to be reduced in size.
Annual General Meeting(AGM) A meeting which must be held by all public companies, which sell shares on the securities exchange. Here, a report on the company’s performance is made to shareholders and shareholders are given the right to vote on major policy decisions concerning the company.
Bell A signal that trading on the floor is opening or closing. On special occasions, the opening bell may sometimes be accompanied by a ceremony with a special guest who rings the bell.
Bid (buy) An order to buy a security posted on the Trading Board.
Blue chip stocks A term generally applied to stocks of well established companies that are known for their solid management, excellent records of consistent profits and payment of dividend.
Bond A borrowing arrangement in which the borrower issues (sells) an IOU to the investor promising to pay an agreed upon amount at a given time.
Bond holders Owners of a bond. They may be individuals or institutions.
Books close date Day on which the register of a company is closed. As of that date the status of entitlements of the share will change.
Buyers’ Market A market which in an initial call in a particular security the aggregate nominal amount of bids exceeds the aggregate nominal amount of offers.
Caveat emptor Latin phrase meaning “Let the buyer beware” the buyer of a given commodity on the market should arm himself with the required information before making a move to buy the share.
Coupon The amount of interest, which a bond pays, on its nominal value.
Cum Placed immediately before a distribution or benefit implies inclusion of the distribution or benefit implies inclusion of the distribution or benefit.
Dealer or Stock broking Firm A listed company constituted for the purpose of undertaking on his behalf as well as on behalf of the clients all transactions for which he is responsible in the course of exercising his functions as a stockbroker.
Dividend cover The number of times a company could pay its annual dividend from its earnings.
Dividend Proportion of profits, which is paid out to shareholders in a company, often paid in two installments as interim and final dividend.
Ex Means that the bargain was dealt exclusive of distribution or benefit.
Listed company A company whose securities are listed at the USE
Listed Security A security which has been admitted to the listing at the USE.
Match Where two orders, one bid and one offer have been either wholly or partially satisfied or declared as trades in accordance with the Matching Procedures contained in the USE Rules.
Offer An order to sell a security posted on the Trading Board
PE ratio Price – Earnings ratio, a relative measure of how cheap or dear a company’s shares are.
Price The unit price of a security.
Primary market Where new issues of securities are offered to the public.
Profit and Loss Account A statement indicating the results of the operations over a period of time, usually one year.
Prospectus A document that gives the financial and management details of a company i.e. the financial history and future plans of the company.
Public flotation Is when a company goes public by issuing its shares to the general public i.e. selling part-ownership to the public
Secondary market Where already existing securities are bought and sold on the exchange through licensed stockbrokers.
Securities Are financial documents in the form of debt (bonds) or equity (shares) by which the claims of holders are secured
Seller’s Market A market where in the initial call in a particular security the aggregate nominal amount of offers exceeds the aggregate nominal amount of bids.
Share A unit of ownership of a company.
Spread The step by step increase or decrease in price by which bids and offers may be raised or lowered.
Trading Board The facility/computers screen provided for matching offers and bids on the market.
Treasury bill Short-term, highly liquid financial instruments issued regularly by governments.