Glossary of financial terms

The total benefits or satisfaction provided to target markets by an organization. An offering consists of a tangible product or service plus related services such as installation, repair, warranties or guarantees, packaging, technical support, field support, and other services.

The complete array of an organization’s offerings including all products and services.

An exempt offering of shares, options, warrants, etc; to non-residents of the United States.

An NASD brokerage firm that offers to trade stocks for clients who use the Internet. These firms charge very low commissions. A few may offer clients shares in Initial Public Offerings, but most solely trade stock for their clients.

A right to buy stock at a specific share price. The specific share price is called the exercise price. Usually, investors purchase options at a very low price betting the share price will appreciate above the exercise price.

See Over-the-Counter

The option granted to an underwriter in a public offering giving it the option, for a period of anywhere from 15 to 45 days after the effective date, to purchase additional securities from the issuer (usually up to 15 % of the shares being sold), at the initial price to the public, for the purpose of covering over-subscription for the securities (see also "Green shoe")

A security that is not listed and traded on an organised stock exchange. It is also a market in which securities transactions are conducted through a telephone and computer network, connecting dealers in stocks and bonds rather than on the floor of an exchange. Securities traded in this manner do not meet the listing requirements of NASDAQ, the New York or the American Stock Exchanges. Rules for trading over-the-counter stocks are written and enforced mainly by the NASD. The basis for the trading are the published Bid/Ask prices of shares printed by National Quotation Bureau, Inc. of New Jersey on pink paper and called "the Pink Sheets." (Also see Bulletin Board and Pink Sheets)