S Corporation (S Subchapter)

U.S. business structure passing income to shareholders, avoiding double taxation.

S&P 500 Index

Tracks 500 large U.S. companies, a key market benchmark.

S&P 500 Dividend Aristocrats Index

Tracks S&P 500 companies with 25+ years of consecutive dividend increases.

Safe Deposit Box

Secure bank vault storage for valuables or financial documents.

Safe Harbors

Legal provisions protecting specific financial actions, like bankruptcy exemptions.

Safe Haven

Low-risk assets, like gold or Treasuries, sought during market turmoil.

Sale

Transfer of goods or services for money, generating revenue.

Sales and Purchase Agreement

Contract outlining terms for buying/selling assets, like real estate.

Sales Lead

Potential customer identified for financial products or services.

Sales Tax

Tax on retail purchases, varying by jurisdiction, impacting costs.

Salvage Value

Asset’s estimated value at the end of its useful life.

Sampling

Selecting a subset of data for financial or statistical analysis.

Sampling Distribution

Probability distribution of a statistic, used in financial modeling.

Sampling Errors

Inaccuracies from using a sample instead of the full population.

Samurai Bond

Yen-denominated bond issued in Japan by a foreign entity.

Sarbanes-Oxley (SOX) Act of 2002

U.S. law enhancing corporate governance and financial reporting accuracy.

Savings Account

Bank account earning interest, offering liquidity for personal savings.

Savings and Loan Crisis (S&L) Crisis

1980s-1990s U.S. financial crisis from failed thrift institutions.

Say's Law of Markets

Theory that supply creates its own demand, influencing economic policy.

Scalability

Ability to grow operations or revenue without proportional cost increases.

Scalping

Quick, short-term trading to profit from small price changes.

Scarcity

Limited resources driving economic value, impacting financial decisions.

Scenario Analysis

Assessing financial outcomes under different hypothetical conditions.

Schedule 13D

SEC filing for 5%+ ownership in a public company, signaling intent.

Schedule 13G

Simplified SEC filing for passive 5%+ ownership in a public company.

Schedule A (Form 1040 or 1040-SR)

IRS form for itemized deductions, like mortgage interest or charity.

Schedule K-1

IRS form reporting partnership or S-corp income to shareholders/partners.

Scope

Extent of a project or analysis, defining financial boundaries or goals.

Scrips

Certificates or tokens, sometimes used as dividends or temporary currency.

Seasonality

Predictable financial or economic patterns tied to seasons or cycles.

Seasonally Adjusted Annual Rate (SAAR)

Economic data adjusted for seasonal variations, like GDP or sales.

SEC Form S-1

Registration statement for public securities offerings, like IPOs.

SEC Yield

Standardized 30-day yield for bond funds, per SEC rules.

Second World

Former term for moderately developed nations, like ex-Soviet states.

Secondary Market

Where existing securities, like stocks or bonds, are traded.

1035 Exchanges

Tax-free transfer of insurance or annuity contracts, preserving value.

Section 1231 Property

Business assets with special tax treatment for gains/losses, like real estate.

Section 1245

Tax rule recapturing depreciation on personal property as ordinary income.

Section 1250

Tax rule recapturing depreciation on real property, with partial capital gains.

Sector

A group of companies with similar business activities, like tech or energy.

Sector Breakdown

Analysis of portfolio or index allocation by industry sectors.

Secular

Long-term market or economic trends, not tied to short-term cycles.

Securities And Exchange Board of India (SEBI)

India’s regulator of securities markets, ensuring investor protection.

Securities Act of 1933

U.S. law requiring securities registration and disclosure for public offerings.

Securities and Exchange Commission (SEC)

U.S. agency regulating securities markets and protecting investors.

Securities Exchange Act of 1934

U.S. law governing securities trading and establishing the SEC.

Securities Lending

Loaning securities to short sellers or others, earning fees.

Securitization

Pooling assets, like loans, into securities for sale to investors.

Security

A financial instrument, like stocks or bonds, representing ownership or debt.

Security Market Line (SML)

CAPM graph showing expected return versus systematic risk (beta).

Seed Capital

Initial funding for startups, often from personal or angel investors.

Seigniorage

Profit from issuing currency, the difference between face value and production cost.

Self-Directed IRA (SDIRA)

IRA allowing alternative investments, like real estate, with more control.

Self Employed Contributions Act (SECA)

U.S. tax on self-employed for Social Security and Medicare contributions.

Self-Employment

Running one’s own business, impacting taxes and financial planning.

Self-Regulatory Organization (SRO)

Industry group, like FINRA, enforcing rules on members, like brokers.

Sell in May and Go Away

Seasonal strategy suggesting selling stocks in May, buying back later.

Sell-Side

Financial firms, like banks, selling securities or research to clients.

Seller Financing

Seller providing a loan to the buyer, often in real estate deals.

Selling, General, & Administrative Expense (SG&A)

Overhead costs, like marketing or salaries, not tied to production.

Senior Bank Loan

Debt with priority repayment, often secured, reducing lender risk.

Sensex

India’s benchmark stock index, tracking 30 major companies on BSE.

Sensitivity Analysis

Testing how financial outcomes change with varying inputs, like rates.

Serial Correlations

Relationship between a variable’s current and past values, used in forecasting.

Series I Bond

U.S. savings bond with inflation-adjusted returns, low-risk investment.

Series 3

License for selling commodity futures, required for certain brokers.

Series 6

License for selling mutual funds and variable annuities, FINRA-regulated.

Series 7

License for general securities trading, like stocks and bonds, FINRA-regulated.

Series 9/10

Licenses for supervising options and general securities sales, FINRA-regulated.

Series 24

License for supervising broker-dealer operations, FINRA-regulated.

Series 57

License for trading securities and derivatives, FINRA-regulated.

Series 63

License for state securities law compliance, required with Series 7.

Series 65

License for investment advisors, focusing on fiduciary duties.

Series 66

Combined license for investment advisors and state securities compliance.

Series B Financing

Second round of startup funding, often for growth or scaling.

Series EE Bond

U.S. savings bond with fixed or adjustable rates, maturing in 30 years.

Service Charge

Fee for financial or other services, like bank account maintenance.

Service Sector

Economy segment providing services, like finance or retail, not goods.

Severance Pay

Compensation for terminated employees, often based on service length.

Shadow Banking System

Non-bank entities, like hedge funds, providing credit or financial services.

Shadow Pricing

Estimating costs of non-market factors, like environmental impact, in finance.

Share Certificate

Document proving stock ownership, issued by a company or broker.

Share Class

Different types of stock, like Class A or B, with varying rights.

Share of Wallet (SOW)

Portion of a customer’s spending captured by a firm, key in marketing.

Share Repurchase

Company buying back its own shares, boosting stock value or EPS.

Shareholder

Owner of a company’s stock, with voting or dividend rights.

Shareholder Activist

Investor pushing for corporate changes to increase shareholder value.

Shareholder Equity (SE)

Assets minus liabilities, representing owners’ claim on a company.

Shareholder Equity Ratio

Equity divided by total assets, showing financial leverage.

Shareholder Value

Enhancing stock price or dividends to benefit shareholders.

Shareholder Value Added (SVA)

Value created for shareholders, often measured by economic profit.

Shareholders' Agreement

Contract outlining shareholder rights and obligations, like voting or sales.

Shares

Units of ownership in a company, traded as stocks.

Sharing Economy

Peer-to-peer resource sharing, like Airbnb, impacting financial models.

Sharpe Ratio

Risk-adjusted return, dividing excess return by standard deviation.

Shell Corporation

Inactive company used for financial maneuvers, like tax avoidance, often legal.

Sherman Antitrust Act

U.S. law preventing monopolies and anti-competitive practices, protecting markets.

Shooting Star

Bearish candlestick with a long upper wick, signaling reversal.

Short (or Short Position)

Selling borrowed securities, betting on price declines.

Short Call

Selling a call option, risking unlimited losses if prices rise.

Short Covering

Buying back borrowed securities to close a short position.

Short Interest

Shares sold short, indicating bearish sentiment or potential squeezes.

Short Interest Ratio

Short interest divided by average daily volume, showing days to cover.

Short Put

Selling a put option, risking losses if the underlying price falls.

Short Run

Time period where some inputs are fixed, affecting financial decisions.

Short Sale

Selling a home for less than its mortgage, requiring lender approval.

Short Selling

Borrowing and selling securities, aiming to buy back cheaper.

Short Squeeze

Rapid price rise forcing short sellers to buy back, amplifying gains.

Short-Term Debt

Obligations due within a year, like commercial paper or credit lines.

Short-Term Investments

Liquid assets held for less than a year, like T-bills.

Shortfall

Gap between expected and actual funds, like in budgets or pensions.

Shrinkage

Loss of inventory due to theft, damage, or errors, impacting profits.

Shutdown Points

Price or output level where a firm halts production to minimize losses.

Signature Loan

Unsecured personal loan based on creditworthiness, no collateral needed.

Silent Partner

Investor contributing capital but not managing operations, sharing profits.

Silk Route

Historical trade route, now inspiring modern economic initiatives like OBOR.

Silo Mentality

Departments working independently, reducing financial or operational efficiency.

Simple Agreement for Future Tokens (SAFT)

Contract for future crypto token delivery, used in fundraising.

Simple Interest

Interest calculated only on principal, not on accumulated interest.

Simple Moving Average (SMA)

Average price over a set period, used in technical analysis.

Simple Random Sample

Unbiased sampling method, each unit equally likely to be chosen.

Simplified Employee Pension (SEP)

IRA for self-employed or small businesses, with high contribution limits.

Sinking Fund

Reserve for repaying debt or replacing assets, like bonds or equipment.

Six Sigma

Methodology for improving financial or operational processes, reducing errors.

Skewness

Asymmetry in a distribution, like returns, impacting risk analysis.

Skin in the Game

Personal stake in an investment, aligning interests, per SEC rules.

Slippage

Difference between expected and actual trade price, due to market changes.

Small and Mid-size Enterprise (SME)

Businesses with limited revenue or employees, often targeted for financing.

Small Business Administration (SBA)

U.S. agency supporting small businesses with loans and resources.

Small Caps

Companies with market capitalization under $2 billion, higher risk/reward.

Smart Beta

Investment strategy blending active and passive, targeting specific factors.

Smart Beta ETF

ETF tracking smart beta indices, focusing on factors like value or volatility.

Smart Contracts

Self-executing blockchain contracts, automating financial agreements.

Smart Money

Investments by knowledgeable insiders or institutions, often trend-setting.

Smoot-Hawley Tariff Act

1930 U.S. law raising tariffs, worsening Great Depression trade.

Smurf

Breaking large transactions into smaller ones to evade reporting, often illegal.

Social Audits

Evaluating a firm’s social impact, like ESG, for investor or stakeholder review.

Social Economics

Study of social factors, like inequality, affecting economic outcomes.

Social Enterprise

Business prioritizing social good over profit, like microfinance firms.

Social Entrepreneur

Founder of a social enterprise, balancing impact and financial sustainability.

Social Justice

Fair resource distribution, influencing economic and financial policies.

Social Media

Platforms impacting financial markets via sentiment or investor communication.

Social Networking

Building professional connections, enhancing financial opportunities or deals.

Social Responsibility

Businesses addressing social or environmental issues, like ESG investing.

Social Sciences

Disciplines like economics studying human behavior, informing financial models.

Social Security

U.S. program providing retirement, disability, and survivor benefits.

Social Security Administration (SSA)

U.S. agency managing Social Security programs and benefits.

Social Security Number (SSN)

Unique U.S. identifier for tax and financial transactions.

Social Welfare System

Government programs, like welfare or Medicaid, supporting low-income individuals.

Socialism

Economic system prioritizing collective ownership, impacting markets and taxes.

Socially Responsible Investments (SRI)

Investments aligning with ethical, social, or environmental values.

Société Anonyme (S.A.)

Corporate structure in some countries, similar to a public limited company.

Soft Skills

Non-technical skills, like communication, vital for financial professionals.

Software-as-a-Service (SaaS)

Cloud-based software delivery, impacting tech valuations and subscriptions.

Sole Proprietorship

Business owned by one person, with full liability and tax pass-through.

Solvency

Ability to meet long-term debt obligations, ensuring financial stability.

Solvency Ratio

Assets divided by liabilities, measuring ability to cover debts.

Sortino Ratio

Risk-adjusted return focusing only on downside risk, unlike Sharpe.

Sovereign Wealth Fund (SWF)

State-owned investment fund, like Norway’s, managing national wealth.

Special Drawing Rights (SDR)

IMF’s international reserve asset, supplementing member countries’ reserves.

Special Economic Zones (SEZ)

Areas with tax or regulatory incentives, boosting investment and trade.

Special Power of Attorney

Limited authorization for specific financial or legal tasks.

Special Purpose Acquisition Company (SPAC)

Shell company raising funds to acquire a private firm, going public.

Special Purpose Vehicle (SPV)

Entity created for specific financial tasks, like securitization, isolating risk.

Special Warranty Deed

Property deed warranting title only for the seller’s ownership period.

Specialization

Focusing on specific skills or markets, enhancing financial efficiency.

Speculation

High-risk investing for profit, based on price movements, not fundamentals.

Speculator

Investor taking high risks for potential high returns, like in derivatives.

Spiders (SPDR)

ETFs tracking indices like S&P 500, popular for diversification.

Spillover Effect

Economic actions affecting unrelated parties, like monetary policy impacts.

Spinning Top Candlestick

Neutral candlestick with small body, signaling market indecision.

Spinoff

Creating a new company by separating part of an existing firm.

Spoofing

Illegal trading tactic placing fake orders to manipulate prices.

Spot Exchange Rate

Current currency exchange rate for immediate delivery.

Spot Market

Market for immediate asset trading, like commodities or forex.

Spot Price

Current market price for immediate delivery of an asset.

Spot Rate

Synonym for spot exchange rate or interest rate for immediate transactions.

Spot Trade

Immediate exchange of assets, like currencies, at current prices.

Spread Betting

Speculating on price movements without owning assets, tax-free in some regions.

Spreads

Difference between bid and ask prices or yields, like bond spreads.

Stable Value Fund

Low-risk fund preserving capital, often in retirement plans.

Stagflation

High inflation with stagnant growth and unemployment, challenging economies.

Stagnation

Slow or no economic growth, impacting investments and markets.

Stakeholder

Anyone affected by a company’s actions, like shareholders or employees.

Stalking-Horse Bid

Initial bid in bankruptcy auctions, setting a floor for higher offers.

Standard & Poor's (S&P)

Firm providing credit ratings, indices, and financial research.

Standard Deduction

Fixed tax deduction amount, reducing taxable income, varying by filing status.

Standard Deviation

Measure of asset return volatility, used in risk assessment.

Standard Error

Measure of sample mean accuracy, used in financial statistics.

Standard Industrial Classification (SIC Code)

U.S. system classifying industries for economic and financial analysis.

Standard of Living

Wealth and comfort level, influenced by income and economic conditions.

Standardization

Uniform processes or products, improving financial or operational efficiency.

Standby Letters of Credit

Bank guarantee for payment if a party defaults, used in trade.

Stare Decisis

Legal principle following precedent, impacting financial disputes or contracts.

Startup

New business, often tech-focused, seeking rapid growth and funding.

State-Owned Enterprise (SOE)

Government-owned business, like utilities, impacting markets and policy.

Statement of Retained Earnings

Report showing changes in retained earnings, linking income to balance sheets.

Statistical Significance

Likelihood results are not due to chance, used in financial analysis.

Statistics

Data analysis techniques, critical for financial modeling and forecasting.

Statute of Frauds

Law requiring certain contracts, like loans, to be written for enforceability.

Statute of Limitations

Time limit for legal claims, like debt collection, varying by jurisdiction.

Statutory Reserves

Mandatory bank reserves for liabilities, like insurance or deposits.

Step-Up in Basis

Adjusting an inherited asset’s cost basis to market value, reducing tax liability.

Sterling Overnight Interbank Average Rate (SONIA)

UK benchmark for overnight lending, used in financial contracts.

Sticky Wage Theory

Wages resisting downward changes, causing unemployment in downturns.

Stipend

Fixed payment, often for internships or training, not tied to hours.

Stochastic Modeling

Using random variables to model financial outcomes, like pricing.

Stochastic Oscillator

Momentum indicator comparing closing prices to a range, signaling reversals.

Stochastic RSI (StochRSI)

RSI-based oscillator, identifying overbought/oversold conditions with higher sensitivity.

Stock

Ownership share in a company, traded on exchanges or privately.

Stock Analysis

Evaluating stocks using fundamental or technical methods for investment.

Stock Appreciation Right (SAR)

Employee compensation tied to stock price increases, paid in cash or shares.

Stock Compensation

Employee pay in stock or options, aligning interests with shareholders.

Stock Dividend

Dividend paid in additional shares, not cash, increasing share count.

Stock Exchange Daily Official List (SEDOL)

Unique identifier for securities, used globally for tracking.

Stock Exchange-Traded Fund (ETF)

Fund tracking an index or asset, traded like a stock on exchanges.

Stock Keeping Unit (SKU)

Unique product identifier, used in inventory and sales tracking.

Stock Market

Marketplace for trading equities, like NYSE or Nasdaq.

Stock Market Crash

Rapid, significant decline in stock prices, often market-wide.

Stock Option

Right to buy/sell stock at a set price, often for employees.

Stock Quote

Current price and trading data for a stock, like bid/ask.

Stock Screener

Tool filtering stocks by criteria, like P/E or market cap.

Stock Split

Dividing shares to lower price, increasing liquidity without changing value.

Stock Symbol (Ticker)

Unique code identifying a stock, like AAPL for Apple.

Stockbroker

Licensed professional facilitating securities trades for clients.

Stockholders' Equity

Synonym for shareholder equity, assets minus liabilities.

Stop-Limit Order

Order to buy/sell at a limit price once a stop price is hit.

Stop-Loss Order

Order to sell a security when it hits a set price, limiting losses.

Stop Order

Order to buy/sell once a security reaches a specified price.

Stop Payments

Halting payment on a check or transaction, incurring bank fees.

Store of Value

Asset retaining worth over time, like gold or stable currencies.

Straddle

Options strategy buying both call and put, betting on volatility.

Straight Line Basis

Depreciation method spreading asset cost evenly over its life.

Straight-Through Processing (STP)

Automated transaction processing without manual intervention, reducing costs.

Strangle

Options strategy buying out-of-the-money call and put, betting on big moves.

Strategic Alliance

Partnership between firms for mutual financial or operational benefit.

Strategic Financial Management

Aligning financial decisions with long-term business goals.

Strategic Management

Planning and executing long-term business strategies, including financial.

Stratified Random Sampling

Sampling by dividing a population into subgroups, improving accuracy.

Strength, Weakness, Opportunity, and Threat (SWOT) Analysis

Framework assessing internal and external business factors, including financial.

Stress Testing

Simulating extreme scenarios to assess financial system or portfolio resilience.

Strike Price

Price at which an option can be exercised, key in derivatives.

Structural Unemployment

Joblessness from skill or industry mismatches, not economic cycles.

Structured Finance

Complex financial instruments, like securitizations, tailored for specific needs.

Structured Note

Debt security with embedded derivatives, customizing risk/return profiles.

Student Loan Forgiveness

Canceling student debt, often by government programs, reducing borrower liability.

Subjective Probability

Probability based on personal judgment, used in financial decision-making.

Sublease

Renting leased property to another party, impacting rental income.

Subordinated Debt

Debt with lower repayment priority, riskier for lenders.

Subordination Agreement

Contract prioritizing one creditor’s claim over another’s in bankruptcy.

Subprime Loan

High-risk loan to borrowers with poor credit, often higher interest.

Subprime Mortgage

Mortgage for borrowers with low credit scores, linked to 2008 crisis.

Subrogation

Insurer’s right to pursue third parties for losses paid to policyholders.

Subscription Agreement

Contract for purchasing securities, like in private placements or IPOs.

Subsidiary Rights

Secondary rights, like licensing, generating additional revenue.

Subsidy

Government financial support, like tax breaks, boosting specific sectors.

Substantially Equal Periodic Payment (SEPP)

Penalty-free early IRA withdrawals via fixed payments, per IRS rules.

Substitute

Goods or services replacing others, like bonds for stocks, affecting demand.

Substitution Effect

Consumers choosing cheaper alternatives as prices rise, impacting markets.

Sukuk

Islamic bonds backed by assets, compliant with Sharia law.

Sum of Squares

Statistical measure of variance, used in regression for financial models.

Sum-of-the-Parts Valuation (SOTP)

Valuing a company by summing its business units’ values.

Summa Cum Laude

Highest academic honor, relevant for financial career credentials.

Sunk Cost

Irrecoverable costs, ignored in financial decision-making to avoid bias.

Superannuation

Retirement savings system, common in Australia, similar to pensions.

Supplemental Executive Retirement Plan (SERP)

Non-qualified plan boosting executive retirement benefits.

Supply

Amount of goods or services available, impacting prices and markets.

Supply Chain

Network of production and distribution, critical for cost management.

Supply Chain Finance

Financing to optimize cash flow in supply chains, like invoice factoring.

Supply Chain Management (SCM)

Overseeing supply chain processes to improve financial efficiency.

Supply Curve

Graph showing quantity supplied at various prices, sloping upward.

Supply Shock

Sudden supply change, like oil shortages, impacting prices and markets.

Support (Support Level)

Price level where buying halts downward price movement, per technical analysis.

Supranational

Organizations, like IMF, operating across nations, influencing global finance.

Surcharge

Additional fee, like on credit card payments, increasing transaction costs.

Surety

Guarantee of obligation fulfillment, like bonds for contract performance.

Surplus

Excess of assets or income over liabilities or expenses.

Surplus Lines Insurance

Coverage for high-risk clients through non-admitted insurers, less regulated.

Survivorship Bias

Error from focusing only on surviving entities, skewing financial analysis.

Sustainability

Practices ensuring long-term financial or environmental viability, like ESG.

Sustainable Growth Rate (SGR)

Maximum growth a firm can sustain without external financing.

Swap

Derivative exchanging cash flows, like interest rates or currencies.

Swap Execution Facility (SEF)

Platform for trading swaps, mandated by Dodd-Frank for transparency.

Swap Rate

Fixed rate in an interest rate swap, used as a benchmark.

Swaption (Swap Option)

Option to enter a swap, offering flexibility in rate or currency hedging.

Sweat Equity

Value from labor or effort, like in startups, not cash investment.

Sweep Account

Account automatically transferring excess funds to investments, optimizing returns.

Swing Trading

Holding securities for days or weeks, capturing short-term price swings.

Swingline Loan

Short-term credit line for immediate liquidity, often in revolving facilities.

Switching Costs

Costs of changing providers, like banks, impacting customer retention.

Symmetrical Distribution

Data distribution balanced around the mean, like normal distribution, used in finance.

Syndicate

Group of investors or firms pooling resources for deals, like IPOs.

Syndicated Loan

Loan from multiple lenders to a single borrower, spreading risk.

Synergy

Increased value from combining entities, like in mergers or acquisitions.

Synthetic

Financial instrument mimicking another, like synthetic ETFs or options.

Systematic Investment Plan (SIP)

Regular, fixed investments, like in mutual funds, for disciplined saving.

Systemic Risk

Risk of collapse in an entire financial system, like during 2008 crisis.

Systematic Sampling

Sampling by selecting every nth item, used in financial data analysis.