 Word Description All Shares Index This refers to the complementary index to the Philippine Stock Exchange Composite Index, which takes into consideration the common stocks of all listed companies. Clearing and Trade Guaranty Fund (CTGF) This is the fund established, maintained and administered by the Securities Clearing Corporation of the Philippines for the purpose of covering failed trades due to a member's illiquidity and/or insolvency of a member. P/E Ratio This is the Price-to-Earnings ratio, a ratio that evaluates a stock's worth. This is calculated by dividing the stock's price by an earnings-per-share figure. If calculated with the past year's earnings, it is called the Trailing Price-to-Earnings ratio. If calculated with an analyst's forecast for the next year, it is called Forward Price-to-Earnings ratio. PASBDI This is the Philippine Association of Securities Brokers and Dealers, Inc, an umbrella organization of all licensed stockbrokers and independent securities brokers and dealers, as well as investment houses in the country. PASTRA This is the Philippine Association of Stock Transfer Agencies, Inc, an organization of stock transfer agencies in the country. PSEi This is the Philippine Stock Exchange Composite Index, an aggregate measure of relative changes in the market capitalization of common stocks that provides a comprehensive picture of market trends. This is composed of a fixed basket of 00 listed common stocks carefully selected to represent the general movement of market prices. PSEtrade This refers to an auction trading system based on price and time priority. Philippine Central Depository This refers to the specialist company holding securities that allow for ownership to be easily transferred through a book-entry system instead of transferring physical certificates. The depository serves as a central location where the securities are made available for clearing, settlement, and securities borrowing and lending. Philippine Deposit Receipts (PDR) This is a security that grants the holder the right to the delivery of sale of the underlying share. Philippine Deposit Receipts are not evidence or statements nor certificates of ownership of a corporation. SCCP This is the Securities Clearing Corporation of the Philippines, a wholly-owned subsidiary of PSE. Ths is established to provide a centralized clearing, settlement and risk management services in the book entry environment of the depository system. SEC This is the Securities and Exchange Commission, a government institution that supervises and regulates the securities industry. It also formulates policies and recommendations on issues concerning the securities market. It directly regulates the PSE in its activities as an exchange and as a publicly-listed company. accrued interest This is a type of interest that has been earned but not yet received and is normally applicable to bonds or debentures. affiliate This refers to a person who directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with the person specified, through the ownership of voting shares by contract or otherwise. aftermarket This refers to the subsequent selling or buying transactions of shares after IPO, where proceeds accrue to the selling dealers and investors, and not to the companies that originally issued the securities. agent This refers to the individual or firm authorized to act on behalf of another, called the principal, such as by executing a transaction. The agent does not assume any financial risk in the transaction, as a dealer would. arbitrage This refers to the simultaneous purchase and sale of securities in different markets in an attempt to profit from short-term price disparities. ask price This is the lowest price a seller of a security is willing to take for a unit of a security at a particular time and is also called "offer price". associated person This refers to an employee of a broker or dealer who directly exercises control of supervisory authority but does not include a salesman, or an agent or a person whose functions are solely clerical or ministerial. at the close order This is an order accepted during the 00-minute run-off period, the price of which shall be limited to the closing price of a particular issue. authorized shares These are maximum shares of any class a company may legally create under the terms of its Articles of Incorporation. They are also called authorized stocks. authorized trader This is a person licensed by the SEC and the Exchange, and is employed by an active trading participant to act on its behalf as far as trading on the floor of the Exchange is concerned. average This is a composite measure that gives insight into the movement of the overall market or of a particular industry. Typically, it consists of a small number of stocks and is usually not capitalization weighted. average profit This means the sum of the pre-tax profits of the subsidiaries divided by the sum of the consolidated pre-tax profits of the parent company and its subsidiaries for the last two fiscal years. averaging down This is the strategy in which an investor lowers the average price paid for each share of stock by purchasing more shares as the price declines. basis point This refers to a phrase used to describe the difference in bond yields, with one basis point representing one-hundredth of a percentage point. bear market This refers to a prolonged period of falling prices. A bear market in stocks is usually brought on by the anticipation of declining economic activity, and a bear market in bonds is caused by rising interest rates. beneficial owner This is a person who enjoys the benefits of ownership even though the title is in another name. When securities are held by a broker in "street name", the real owner is the beneficial owner. bid price This is the highest price a buyer of a security is willing to pay for a unit of the security at a particular time. block sale This is the pre-arranged transaction executed through the facilities of the Exchange. For regular block sale, the minimum transaction value is PhP 00M with price not more than 0% above or below the reference price. Special block sale transaction has a minimum value of PhP 00M. blue chip stock This refers to the share of stable, profitable and well-known public companies that have a long history of steady revenues and dividend payments. It exhibits modest but dependable returns and is relatively of lower risk. board lot This determines the minimum number of shares one can purchase or sell at a specific price range and also called round lot system. bond This is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the holder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. The holder is a creditor of the issuer rather than a partial owner. bond market This is the market for long-term debt instruments such as T-notes, T-bonds, municipal bonds, mortgage bonds, and debentures. book entry system This refers to an accounting system that facilitates the transfer or ownership of securities via electronic debit and credit of holdings. Securities move between parties without the need for the movement of physical documents. book value This is the value determined by deducting the intangible assets from total assets, such as debt. A company's book value can be more or less than its market value. breakout This refers to the event when a security's price rises above a resistance level (commonly its previous high price) or drops below a level of support (commonly the former lower price). A breakout is taken to signify a continuing move in the same direction. broker This is a person who acts as the intermediary between a buyer and seller, usually charging a commission. Brokers must be registered with the exchange where the securities are traded. bull market This is the type of market experiencing a prolonged rise in the prices of stocks, bonds or commodities. A bull market is also characterized by high trading volume. Bull markets are often accompanied by strong investor confidence and optimistic expectations. buy-in This refers to the event when an investor is forced to repurchase shares because the seller was unable to deliver the securities in a timely manner, if not at all. The securities settlement arm of an Exchange may also intervene to settle the failed trade. capital This refers to the total of principal assets that an investor has invested in securities, real estate, and other fixed assets, as well as cash. capital appreciation This refers to an increase in the market value of a security over the adjusted cost of acquisition. capital gain This is the difference between an asset's purchase price and selling price, when the difference is positive. capital loss This refers to the loss that results if the proceeds from the sale of a security are less than that security's acquisition cost. capital markets This refers to markets where capital funds are traded. Included are private placement sources of debt and equity as well as organized markets and exchanges. capital risk This refers to the risk that an investor can lose the money invested in a security. This risk is made up of several different types: business, liquidity, systematic, inflationary, and political. capitalization This refers to the part of the company's funds raised by issuing stocks and bonds. cash dividend This refers to the dividend declared by the company in the form of cash. ceiling This is ceiling price or ceiling range, which means the highest buying price which is set at not more than 00% above the last traded price of a particular security in the previous trading day. central counterparty This refers to an entity that interposes itself between the counterparties to trades, acting as the buyer to every seller and the seller to every buyer. certificate This refers to a document that evidences the ownership of, and the undertakings of the issuer of, a security or financial instrument. See also "stock certificate" charting This refers to the method of capturing the patterns of a stock's price and volume movements on a line, bar, point and figure, or moving average graph. chartist This refers to a technical analyst who uses charts or graphs of a security's historical prices or levels to forecast its future trends. A chartist essentially looks for well-known patterns such as head-and-shoulders or support and resistance levels in securities to augment trading strategies. clearing This refers to the process of determining accountability and creating obligations for the exchange of the security element and/or the cash element between counterparties to a transaction. clearing agency This refers to any person or company acting as intermediary in making deliveries upon payment to effect settlement in securities transactions. close-end fund This refers to the one-time offering of a fixed number of shares to the public where the issuer does not issue new shares nor redeem old shares. closing price This refers to the price at which the last transaction for an issue was matched during a regular trading day. collateral value This refers to the estimated market value of an asset used as loan collateral. For listed securities used as collateral, the current price of the shares is the collateral value. commercial papers This refers to short-term obligations with varying maturities issued by banks, corporations, and other borrowers to investors. commission This is the basic fee charged by a broker or agent for executing an order for a customer. common stock This refers to the units of ownership of a public corporation. Owners typically are entitled to vote on the selection of directors and other important matters as well as to receive dividends on their holdings. confirmation This refers to the formal memorandum from a broker to a client giving details of a securities transaction. confirmation receipt This refers to a written report giving details of the trade to the customer or the other broker/dealer involved in the trade. The confirmation must be sent the next business day after the trade. conversion price This refers to a bond's par value cash amount when it is converted to a share of common stock. conversion ratio This refers to the relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred share when the conversion takes place. convertible preferred stock This refers to the preferred stock that, at some future time, can be converted into a specified number of shares of common stock. corporate actions These are changes in companies that affect their listings on stock exchanges. Examples of corporate actions are new issues, defunct issues, mergers, and name changes. corporate nominee This means an individual duly authorized by a corporate trading participant to act on its behalf and to exercise the rights and duties of said trading participant pursuant to Exchange Rules. counterparty This refers to a party to a trade. coupon This denotes the interest expressed as a percentage of the face value. credit risk This refers to the risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. Credit risk includes replacement cost risk and principal risk. It also includes the risk of settlement bank failure. cross transaction This means a deal where the same broker has a buying and selling order from his two different clients at the same price and the same issue. cum dividend This means "with dividend", i.e. any person buying shares of stock of an issuer before ex-dividend date is entitled to the dividends declared on such stock cum rights This refers to shares of stocks that entitle the purchaser to buy a specified amount of stock that is yet to be issued. cumulative preferred This is preferred stock whose dividends accumulate until paid. current yield This is the current yield that takes into account the price at which the bonds can be purchased. Buying a bond at a discount increases the yield while buying it at a premium reduces the yield. custodian This refers to an entity, often a bank, that safekeeps securities for its customers and may provide various other services, including clearance and settlement, cash management, foreign exchange and securities lending. custody This refers to the safekeeping and administration of securities and other financial instruments on behalf of others. custody risk This refers to the risk of loss on securities in safekeeping as a result of the custodian"s insolvency, negligence, misuse of assets, fraud, poor administration or inadequate record keeping. cyclical stock This is the type of stock that owned by corporation whose earnings fluctuate with the business cycle. Also refers to the kind of stocks highly dependent on the state of the economy. Examples are: airline, hotel, steel, cement, cars, etc. day order This refers to an order to buy or sell which, if not executed, expires at the end of the trading day on which it was entered. day trading This refers to establishing and liquidating the same position or positions within one day's trading. deal This means a matched order, matched either by the trading system or by the broker as in cross or special block sale. dealer This refers to an individual or firm acting as a principal in a securities transaction. Principals trade for their own account and risk. defaulting member This is a member who, by the end of business hours on settlement date, does not have sufficient funds in its settlement bank account to settle its net money obligation or does not have sufficient securities in its settlement sub-account to settle the security element of its trade. defensive stock This stands opposite of cyclical stocks, issued by companies producing staples such as food, beverages, drugs and insurance. These stocks typically maintain stability in their value during recessionary periods. delayed delivery This refers to transactions done on the trading floor and are coursed through the central depository but are made on a date later than the usual settlement date. delivery This refers to the transfer of a security or financial instrument. delivery versus payment This refers to a link between securities transfer and funds transfer that ensures that delivery occurs if, and only if, payment occurs. dematerialization This refers to the move from physical certificates to electronic bookkeeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording. derivative market This refers to a market of derivatives or instruments whose values are derived from other underlying assets. Examples of derivatives are options and futures contracts. direct delivery This refers to transactions done on the trading floor but are not coursed through the central depository. discount broker This refers to a brokerage house that executes orders to buy and sell securities at commission rates sharply lower than those charged by a full-service broker. dividend This refers to the share in the profits of a corporation paid to the stockholders out of the unrestricted retained earnings, in proportion to the number of shares owned by the stockholders. May be in the form of cash, stock or property. earnings per share This is the ratio of net income to outstanding shares, computed as net income divided by outstanding shares. equity capital This is the type of capital contributed by partners, par or stated value of capital stock, paid-in capital in excess of par, retained earnings or other capital accounts. escrow This refers to money or securities held by third parties pending completion of some contract terms. ex-dividend This means "without dividend". ex-dividend date This means the date set by the Exchange starting from which the buyer is no longer entitled to the dividends. This date is currently set at 0 business days before record date. ex-rights This refers to the time when a buyer of a stock acquires only the stock itself and not any associated right to subscribe to additional stock directly from the company at a discount. face value This refers to a formal cash-in value written on a note or other financial document. It is the amount the issuing company promises to pay at maturity. failed trade This refers to a failed transaction; a securities transaction that does not settle on the contractual settlement date. final settlement This refers to the discharge of an obligation by a transfer of funds and a transfer of securities that have become irrevocable and unconditional. fixed income This refers to an investment security paying a fixed amount of interest on a regular basis. floor price This refers to a floor range, which means the lowest selling price which is set at not more that 00% below the last traded price. fluctuation This refers to the price movement of a security. full-service broker This refers to a broker who provides a wide range of services to clients including research, margin loans, and market-making activities. global custodian This refers to a custodian that provides its customers with custody services in respect of securities traded and settled not only in the country in which the custodian is located but also in numerous other countries throughout the world. good-til-cancelled (GTC) This is a trading choice that means the order you place will remain open for a set period of time, unless the order is executed or cancelled. gross settlement system This refers to a transfer system in which the settlement of funds or securities transfer instructions occurs individually. growth stock This refers to a stock of a corporation that has exhibited faster-than-average gains in earnings over the last few years and is expected to continue to show high levels of profit growth. immobilisation This refers to a placement of physical certificates for securities and financial instruments in a central securities depository so that subsequent transfers can be made by book entry. income stock This refers to a stock paying high and regular dividends to shareholders. index This refers to a medium used to denote trends in the securities market. indirect market participant This refers to a market participant that uses intermediary for the execution of trades on its behalf. Generally, institutional investors and cross-border clients are indirect market participants. initial public offering (IPO) This is the primary distribution or sale or offer to sell new or subsequent issues of securities to the general public. insider This refers to any person who has or whose relationship or former relationship to the issuer gives or gave him access to material information about the issuer or the security that is not generally available to the public. insider trading This means the act of selling or purchasing, or causing the sale or purchase of a security having knowledge of a fact of special significance with respect to the issuer or the security that is not generally available to the public. institutional investors The organizations whose primary purpose is to invest their own assets or those entrusted to them by other. The most common are employee pension funds, insurance companies, mutual funds, university endowments, and banks. interest rate risk Ths refers to the volatility of bond prices that results from changes in interest rates. Interest rates are affected by various factors and are hard to predict, especially over the long term. investment house This means a duly licensed enterprise authorized to underwrite securities of another person or enterprise, including securities of the government and its instrumentalities. issued shares This is capital stock that has been sold to shareholders. issuer This refers to an originator, maker, obligor, or creator of the security. This is the company offering its shares. limit order This refers to an order to buy or sell at a specific price or at a price better than the specified price that shall be within the ceiling and floor price restrictions. liquidity This refers to the ease with which assets may be converted into cash, whether for investment, portfolio, or account. For a market, the ability of the market to absorb fairly large volumes of sales without drastically affecting the price. liquidity risk This refers to the risk that a counterparty will not settle an obligation for full value when due, but on some unspecified date thereafter. listed stock Ths is the stock of a company that is traded on the Exchange. listing This means the admission of securities for trading on the Exchange. lodged securities This means securities that have been properly deposited in the Depository System. long This refers to the owning a security with the expectation that its value will increase. major shareholder This refers to a person or entity who controls or owns at least 00% of the voting stock of a corporation. manipulation This is the illegal act of creating a false impression of trading volume or price for a security. margin agreement This refers to the agreement whereby the customer express consent to pledging his securities as collateral for a debit balance. margin securities This shall mean those securities which have been purchased by a customer on the basis of credit extended by a broker or dealer pursuant to the provisions of the Securites Regulations Act. market capitalization This is the market value of a company at a given point in time. Market capitalization is calculated by multiplying the number of shares by the share price. market maker This refers to the event that provides liquidity to the market by posing both bid and asked prices for certain issues. market order This refers to an order to buy or sell a security at the price prevailing at the time the order is given. This is generally done when the client wants an immediate execution of his order. market value This refers to the price of a security based on the quotations in the Exchange. marking the close This refers to a prohibited practice of closing up or down at an obviously small amount or board lots just before the closing of the market for purposes of manipulating stock prices. maturity This refers to the date at which a loan or bond or debenture comes due and must be redeemed or paid off. minimum fluctuation This refers to the smallest possible price movement of a security. This is also known as the minimum tick. money market This refers to the market of highly liquid, short-term fixed-income instruments such as t-bills, commercial paper, and bank certificates of deposits. netting This refers to an agreed offsetting of mutual obligations by trading partners or participants in a system, including the netting of trade obligations. For example, through a central counterparty; and also agreements to securities or funds transfer instructions on a net basis. nominal yield Nominal yield is equal to the bond's coupon rate. Hence, a bond with a coupon rate of 0 percent has a nominal yield of 0 percent. nominee This refers to a person or firm into whose name, securities or other properties are transferred by agreement. oddlot This means that the quantity of the lot is less than one board lot. offer price This is also known as "asked price". offering period This means the period within which securities will be made available for sale to the public. omnibus account This refers to an account in which a broker or dealer effects transactions for its customer through another broker. open order This is an order that has been entered and remains in effect until executed, canceled or expired. opening price This is the price at which the first transaction for an issue was matched. operational risk This refers to the risk that deficiencies in information systems or internal controls, human errors or management failures will result in unexpected losses. order This means either a bid or a quote from a client entered into the trading system by the trader. order-driven system This is a system dominated by brokers acting as agents. Customers' orders are posted into the system and anyone viewing the standing orders knows exactly what trades are going to be executed if a new quote or limit order is entered. outstanding shares Ths refers to the issued capital stock held by shareholders. This, therefore, represents the total issued capital stock less any treasury stock. over-the-counter (OTC) This means a security that is not listed and traded on an organized exchange. paid-up capital This means the amount paid for subscribed capital stock. par value This refers to an arbitrary value given to the stock at the time of issuance and is used to record the value of shares on the books of the corporation. portfolio This refers to a group of securities held or owned for investment purposes by an individual or institutional investor, an investor's portfolio may contain common and preferred shares, bonds, options and other types of securities. pre-emptive rights This means the right of the stockholder of the company to subscribe to all issues or disposition of shares of any class in proportion to his shareholdings. pre-open order This refers to a transaction by which the price shall be its stated price or a better buying (lower) or selling (higher) price depending on the calculated opening price. pre-settlement risk This is the risk that a counterparty to a transaction for completion at a future date will default before final settlement. The resulting exposure is the cost of replacing the original transaction at current market prices. preferred stocks These are the stocks that give shareholders preference over common stockholders in terms of having a fixed dividend rate and priority claim over earnings and assets in the event of a company's liquidation. However, their potential for price appreciation is lesser and have no voting rights, unless indicated. premium (bonds) This refers to the amount by which a bond or preferred stock may sell above its par value. Also, that part of redemption price of a bond or preferred stock in excess of par. premium (new issue) This refers to the amount the market price rises over the original selling price of a new issue of stocks or bonds. premium (option) This refers to the amount paid to the option seller or writer for assuming the risk that he may have to buy (for puts) an underlying security for more than the market price or sell (for calls) at less than the market price. previous close This refers to the closing price at which the issue was last traded. price band This is also known as a trading band. The allowable price for a buy or sell order is reckoned from the last closing price or posted bid, whichever is higher. price freeze This refers to the event when the trading price of the shares moves 00% upward or 00% downward from the previous closing price. Trading is still allowed, but the movement of the price is not. price manipulation This refers to a series of transactions designed to raise or lower the price of a security or to give the appearance of trading for the purpose of inducing others to buy or sell said security. An intentional interference with the free forces of supply and demand. primary market This refers to a venue where new issues of stocks and bonds are sold by corporations, national and local government units. primary shares These are the shares from a company's authorized capital stock that are issued for the first time. They are also called "new issues". principal risk This refers to the risk that the seller of a security delivers the security but does not receive payment or that the buyer of a security makes payment but does not receive the delivery. In such an event, the full principal value of the securities or funds transferred is at risk. private placement This refers to the event where securities are specifically being offered to one or several investors, whether existing stockholder/s of the applicant company or otherwise, as opposed to securities that are being publicly offered and distributed. prospectus This refers to the document made by or on behalf of an issuer, underwriter or dealer to sell or offer securities for sale to the public through a registration statement filed with the SEC. public listing This refers to the offering or sale to the general public of new or subsequent issues of securities traded on the stock exchange. record date This refers to the date on which stockholders must officially own shares in order to be entitled to any shareholders rights or dividends. red herring This refers to the preliminary prospectus or registration statement filed with the SEC and Exchange, which contains all material information relating to the proposed new issue of securities except for the offer price, other price-related items, and offering period. registrar This refers to a person, an agent or firm appointed by a corporation whose function is to prevent overissuance of the corporation's shares. registration statement This refers to the application for registration of securities required to be filed with the SEC. replacement cost risk This is the cost of replacing the original transaction at current market prices. salesman This refers to a natural person, employed as such or as an agent, by a dealer, issuer or broker to buy and sell securities. scrip This refers to the physical evidence of ownership, as in stock certificate. scripless trading This is the trading system where settlement is carried out via book-entries rather than by the movement of physical securities. secondary market This covers the exchanges and OTC markets where securities are bought and sold subsequent to original issuance which took place in the primary market. Also called "aftermarket". secondary shares They are the shares that have been previously issued by the company. securities They are the shares, participation or interests in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character. settlement date This is the date on which payment is due to settle a trade. Currently, for equities, settlement is set at 0 days after trade date. For SDT Bonds, settlement is on the day the trade was made. shares outstanding These are authorized shares in a company that are held by investors, including employees and executives of that company. They exclude unissued shares. short This refers to the sale of a borrowed security expecting a decline in that security's price or value. The seller eventually returns the borrowed security by buying from the market at a lower price, thus making a profit. This is also referred to as a short sale. stock certificate This is a physical paper or document evidencing ownership by a shareholder in a corporation. stock dividends These are the mean dividends paid in the form of shares of stock of the company. stock exchange This refers to an organized venue for trading registered and listed stocks. It is an organization whose function is to facilitate the purchase and sale of stocks and other securities. It is a market for outstanding equity shares. stock market This refers to a place where stocks are traded to investors. It is composed of the primary and secondary markets. There are two basic types of a stock market: organized securities exchange and over-the-counter market. stock option This is the right to purchase a specified number of shares of stock for a specified price at a specified time. stock rights This is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price. stock split This refers to an increase in a corporation's number of outstanding shares without any change in the shareholders' equity or the aggregate market value at the time of the split. stocks They are shares of ownership in a corporation. When you become a stockholder or an owner of shares of a company, you become part-owner of that company. street certificate This certificate acts as an evidence of securities truly owned by a client but registered in the name of a nominee broker to facilitate transactions. street name This phrase describes securities held in the name of a broker or another nominee instead of a customer. subsidiary This is an affiliate controlled by another corporation directly or indirectly through one or more intermediaries. three fluctuation rule This refers to a rule that allows entry of buying order from the lowest allowable price up to a maximum price which is three fluctuations above the best (lowest) offer; selling order is allowed from the highest allowable price down to a maximum price which is three fluctuations below the best (highest) bid. trading band This means the allowable price range for regular buy or sell orders; from the highest buying price (ceiling) and the lowest selling price (floor) on a particular day. trading day This refers to any day when the Exchange is open for transaction and trading is conducted. trading floor This means the physical premises where trading of securities are conducted. trading halt This means the temporary stoppage or suspension of the trading of a listed security or suspension of trading in the Exchange. trading participant This means any Broker Dealer who has the right, pursuant to PSE Rules, to trade at the Exchange. transaction This means an agreement for the purchase and sale of securities. transfer agent This refers to a firm, usually a commercial bank, appointed by a corporation to maintain records of stock owners, to cancel and issue certificates, and to resolve problems arising from lost, destroyed, or stolen certificates. treasury shares These are the shares of stock which were previously issued and fully paid, but subsequently reacquired by the issuing corporation by purchase, redemption, donation, or through some other lawful means. total turnover value This refers to the number of transactions in monetary terms traded on a particular period. It tells us how much money is turned over from the trading of stocks. It is computed by multiplying the number of shares traded by the market price at the point when the trade was made. volume This refers to the total number of shares traded in a particular period or session. warrants This refers to a derivative instrument which grants the holders the right but not the obligation to buy (in the case of a call warrant) or sell (in the case of put warrant) a stated number or shares of stock at a specified price and at a specific time in the future. yield This means the percentage rate of return on an investor's capital investment. QUIZ