SCALP: This is a trade that is made quickly with an entry and an exit within one day.

SCALPER/SCALPING: An investor who uses a trading strategy that enters and exits a securities position quickly, resulting in small profits or losses, rarely holding a position for more than a day. 

SEAT: A membership on an exchange also required to do any business transaction on the exchange.

SECONDARY MARKET: This is a Market in which an investor buys securities from another investor rather than an issuer, following the sale of securities to the public for the first time. 

SECURITIES AND EXCHANGE COMMISSION (SEC): This is the primary government agency that regulates the securities industry, which deals in stocks, options and bonds. The SEC's responsibility is to protect investors from deceitful and controlling practices within the securities markets. 

SECURITIES INVESTOR PROTECTION CORPORATION (SIPC): This is a nonprofit membership corporation established by Congress to insure investors in the event of a brokerage firm running out of money or forced into bankruptcy. The Securities Investor Protection Corporation (SIPC) insures securities and cash to meet investor claims up to $500,000 in securities and cash, with a cash maximum of $100,000. Note:  The SIPC is also funded by its members who are brokers and dealers. 

SECURITY: This is a term for an investment or trading instrument, which is issued by a government, corporation and/or other organizations. Securities can be any note, stock, bond, or derivative like options or futures.

SEGREGATION: The SEC regulations require holding of a customer's funds separate from securities owned by other customer and securities by the brokerage firm. 

SELF REGULATORY ORGANIZATION (SRO): Non-government organizations that have a responsibility to the SEC to regulate and supervise the securities practices of their own members. 

SERIES: All options contracts that have the same class, strike price, and expiration date. .

SETTLEMENT DATE: This is the date by which an executed transaction must be settled for securities. 

SETTLEMENT PRICE: The closing prices after a trading session of securities; used to evaluate profits and losses for account statements and deliveries in futures market accounts. 

SETTLEMENT: This is the delivery of a securities certificate in exchange for a payment after a securities trade.

SHARES: This is a certificate that represents one entity of ownership in Stock.

SHORT COVERING: This is to purchase a security in order to close a previous short position. 

SHORT HEDGE: This is the sale of futures or options contracts to protect against a possible decline in the price of a long position.

SHORT INTEREST: This is the number of shares of a security that have been sold short but not yet purchased. 

SHORT SELLER: An investor who sells a security with the knowledge that they will have to buy it back at a later time. 

SHORT SQUEEZE: A situation where investors buy a security as it is rising to help cover their short positions. In this situation, the investors who were short selling that security now are trying to buy back their short positions in order to cut their losses.

SHORT: Investors who have sold a security in expectation that it will fall in price. To relate this to options, it is the sale of an option's contract. 

SKEW: See volatility skew.

SLIPPAGE: When an investor places an order to get filled at a specific price, but doesn't get filled until another price, different from expected. 

SPECIAL MEMORANDUM ACCOUNT (SMA): A limit on the amount of money a customer can borrow against collateral in his/her account. 

SPECIALIST: This is a member of a specific market whose purpose is to maintain the market inventory by buying and selling in a particular security class. 

SPECULATOR: An investor who takes risks buying or selling securities anticipating to profit from large moves in their price or instability. 

SPIN-OFF: This is another company being created from a corporation when it divides its resources into two companies. Then shares of stock in the newly formed company are issued to stockholders of the original corporation.

SPLIT: When a corporation decides to increase the number of outstanding shares and decrease the price per share. 

SPREAD ORDER: This is an order type that deals with the same underlying security, but involves two different option contracts.

SPREAD: The difference between the current bid and current offer prices of a security. This can be an options position that involves buying one option and then at the same time selling another option that is in the same related class. 

SPX: The symbol for the Standard & Poor's 500 cash index. 

SPYDERS (SPDR): This is a short version of Standard & Poor's Depository Receipt, an exchange-traded fund (ETF) that trades like a stock, but is actually one tenth of the S&P Index and is worth around one tenth of the dollar-value of the S&P 500.

STATEMENT: This is a written outline of a brokerage firm's financial information. 

STOCK OPTIONS: A financial contract, giving an investor the right to buy (call) or sell (put) individual stocks at a specific price and date. 

STOCK: This is another type of security that corresponds to some amount of ownership in a corporation.

STOP LIMIT (PRICE) ORDER: A type of order placed with a broker that combines the characteristics of a stop order with the characteristics of a limit order. A stop limit order will initially places a stop limit order (either a buy or sell), which works like a Stop Market order with one major exception. Once the order is activated (by the currency trading at or through the stop price), it does not become a market order. Instead, it becomes a limit order with a specified limit price. Your order fill price will be either at your specified limit price or better.

STOP ORDER: An order type that is submitted, and once executed at a specific price (stop price) turns into a market order. A buy stop order has an expected execution at the existing offer price and a sell stop order should have an expected execution at the prevailing bid price.

STRADDLE: An options strategy that combines both calls and puts on the same security, in which the calls and puts have the same strike price and expiration date. 

STRANGLE: An options strategy that involves both a put option and a call option with the same expiration dates and strike prices, of which have strike prices either above or below the market price of the underlying security. 

STREET NAME: The term used for a security that is held in the name of a brokerage firm on behalf of a customer. This is usually performed to assist with later transactions. 

STRIKE PRICE: The particular price of an option contract at which an investor who is purchasing a call option can buy the underlier or a put option buyer can sell the underlier. 

SYMBOLS: A combination of letters used to identify a security. Symbols with up to three letters are used for stocks which are listed and trade on an exchange. Symbols with four letters are used for NASDAQ stocks. Symbols with five letters are used for NASDAQ stocks other than single issues of common stock. Symbols with five letters ending in X are used for mutual funds.

SYNTHETIC LONG CALL: An option trade created by buying the underlying asset; also know to have the typical return of a call option. 

SYNTHETIC LONG PUT: This is an option's transaction that involves short selling a security and entering a long position on its call.

SYNTHETIC LONG STOCK: This is an option's trade involving the same stock, strike price and expiration date, composed of long calls and short puts. 

SYNTHETIC SHORT CALL: This is an option's trade involving a position of short puts and short stock. The quantity of short puts equals the number of round lots of stock.

SYNTHETIC SHORT PUT: An option's trade that involves a position composed of short calls and long stock. The quantity of short calls equals the number of round lots of stock. 

SYNTHETIC SHORT STOCK: This is an option's trade involving the same stock, strike price and expiration date, composed of short calls and long puts. 

SYNTHETIC: This is a financial instrument that is created artificially by replicating another financial instrument as well as combining features of an assortment of other resources. 

SYSTEMATIC RISK: This is the risk that is commonly involved in an entire class of assets or liabilities and can affect all companies in a stock market. This is also known as market risk. 

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