Sharpe Ratio
DefinitionIn finance, the Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe. Sharpe Ratio The great Nobel Laureate William Sharpe is the name...
Saitori
What is 'Saitori' A member of the Tokyo Stock Exchange who facilitates the trading of securities by matching buy and sell orders. Their role is to make the market as orderly and efficient as possible. Explaining 'Saitori' The saitori are similar to specialists on the NYSE; however, specialists are not allowed to trade for...
Santa Claus Rally
DefinitionA Santa Claus rally is a rise in stock prices in the month of December, generally seen over the final week of trading prior to the new year. The rally is generally attributed to anticipation of the January effect, an injection of additional funds into the market, and to additional trades which must, for accounting and tax reasons, be...
Safekeeping Certificate
What is 'Safekeeping Certificate' A document that represents ownership of a security or certificate of deposit. Safekeeping certificates are the investor's claim against the institution that is holding his or her financial instruments. These documents are most commonly used to facilitate international securities trading and foreign investment; they benefit both the companies and investors who use them....
Securities and Exchange Commission – SEC
Definition The Securities and Exchange Commission of the United States is an independent agency of the federal government of the United States. According to the SEC, the primary responsibility for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, as well as a variety of other activities and organizations, including the...
Sampling
What is 'Sampling' Sampling is a process used in statistical analysis in which a predetermined number of observations are taken from a larger population. The methodology used to sample from a larger population depends on the type of analysis being performed, but may include simple random sampling or systematic sampling. Explaining 'Sampling' The sample should be...
Sandbag
What does 'Sandbag' mean Sandbag is a tactic used to hide or limit expectations of a company's or individual's strength in order to produce greater than anticipated results. Sandbagging, in business, is most often seen when company managers temper the expectations of superiors or shareholders by giving guidance below what they know will be achieved. Once the...
Socialism
Socialism is a political and economic system that is based on collective or public ownership of the production means. Unlike capitalism, socialism lays emphasis not on achievement but on equality. It gives value to the workers in accordance with the time they give in to their work rather than the amount of value produced by them. It is characterized...
Sales And Purchase Agreement (SPA)
What is a 'Sales And Purchase Agreement - SPA' A sales and purchase agreement (SPA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are found in all types of businesses but are most often associated with real estate deals as a way of finalizing the...
Savings And Loan Crisis (S&L)
What is the 'Savings And Loan Crisis - S&L' The Savings and Loan (S&L) Crisis began under the volatile interest rate climate of the 1970s, when vast numbers of depositors removed their money from the S&L institutions and deposited it in money market funds. This allowed for higher interest rates, because the funds were not governed by...