Financial key terms
and definitions
Defined Financial information
and glossary
Please see specific financial
information below
Finance and Trading:
Market Price / Market Value
A security’s last reported sale price as determined through
the dynamics of buyers and sellers in an open market.
Medallion Signature
Guarantee
Medallion guarantee is used to validate a signature or
document. The guarantee is supported by a bond and protects
the issuer of the security and their transfer agent in the
event of a fraudulent transfer. Medallion guarantees may be
obtained from most major banks, brokerage firms or credit
unions. The Securities Transfer Association has recognized
three signature guarantee programs:
1) STAMP - Securities Transfer Agents Medallion Program,
2) SEMP - Stock Exchanges Medallion Guarantee Program, and
3) MSP - Medallion Signature Program
Merger
A merger is the combining of two or more corporations into
one, or the takeover and absorption of one corporation by
another through a purchase acquisition or a pooling of
interests.
Minor
A person who has not yet reached the legal age of majority.
National Association of
Security Dealers Automated Quotations (NASDAQ)
A computerized stock exchange established to facilitate
trading by providing broker/dealers with current bid and ask
price quotes on over-the-counter stocks and some listed
stocks. Unlike the Amex and the NYSE, the NASDAQ does not
have a physical trading floor that brings together buyers
and sellers. Instead, all trading on the NASDAQ exchange is
done over a network of computers and telephones. The NASDAQ
began when brokers started informally trading via telephone;
the network was later formalized and linked by computer in
the early 1970s.
New York Stock Exchange
(NYSE)
The oldest and largest stock exchange in the U.S., located
on Wall Street in New York City. The NYSE is responsible for
setting policy, supervising member activities, listing
securities, and evaluating applicants. Of all the stock
exchanges, the NYSE has the most stringent listing
requirements.
Non-Discretionary Proposal
A proposal on a proxy that brokers cannot exercise voting
authority without instruction from the beneficial holder.
Non-probated Estate
An estate that has not been administered in a probate court
and therefore does not have an administrator or executor
appointed.
Non-resident Alien (NRA)
Withholding
Under Federal law, income from sources within the United
States, such as dividends paid by U.S. companies, that is
received by non-resident aliens are subject to a 30% tax
rate. The tax rate may be lower than 30% if the United
States has an existing tax treaty with a given country. The
tax withholding will take place at the time of any general
distribution. Shareholders who are nonresident aliens will
receive a report of dividends paid and taxes withheld via a
copy of Form 1042S by March 15 of the year following the one
in which payments were made.
Notice of Guaranteed
Delivery
During corporate reorganizations such as tender offers, a
notification used by broker/dealers in the event that an
investor desires to tender shares according to the terms of
the offer, but cannot physically deliver shares prior to the
expiration of the tender offer. A shareholder cannot submit
a guarantee of delivery. Guarantees of delivery must be
submitted through an eligible institution.
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Financial key
terms and definitions. All information about financial
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