Cyber*School

(Basket) Any arrangement of stocks which is based, e.g., on basis of a share index.

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A statistical measure of changes in a stock market. An index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value.

The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets.

(Stock Exchange Act), the Stock Exchange Act regulates the relationship between exchange members/traders/customers on the one hand and the exchange operating company on the other hand. The Stock Exchange Act contains further provisions concerning the approval of transport items to regulated markets, the duties of issuers and partly the Financial Services Authority.

Also, market capitalization. Expresses the total value of all securities traded and operated on a stock exchange, ie the value of the total market. The market capitalization of each company will be added.

As a stock market crash is referred to a particularly strong decline of an entire group of securities (not just a single share) in only one trading day.

The implementation of commercial practices which incurred in the habitual carrying out of exchange transactions and have finally been formed to business conditions in the securities markets.

An option whose underlying is a stock.

Price of traded shares on the stock exchanges. The price (market price) is determined by the current relationship between supply and demand. Important influencing factors are the economic expectations which are expected for a listed company, but also economic conditions (especially interest), political expectations, speculation and interest purchases.

A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value. The most common split ratios are 2-for-1 or 3-for-1, which means that the stockholder will have two or three shares for every share held earlier.

An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.

There are basically two types of Stop Orders: Stop limit orders and stop market orders. Stop orders are placed in the general order book after exceeding or falling below the desired stop limit as a market order or a limit order. Stop orders are additional instruments to limit risks.

There are basically two types of Stop Orders: Stop limit orders and stop market orders. Stop orders are placed in the general order book as a market order or a limit order if the spot rate exceedes or falls below below the desired stop limit. Stop orders are additional instruments to limit risks.

A stop-loss limit defines the maximum loss that a bank is willing to accept for a position. If the stop-loss limit is reached, the dealer must close the position immediately, and thus realize the loss.

A series of market indexes that are representative of the European and global markets. These indexes cover a wide range of market segments including the broad market, blue chips, individual sectors and global indexes. While there are global STOXX indexes, the majority of the focus is placed on the European market. The STOXX indexes were created out of a venture between Dow Jones, Deutsche Boerse AG, and the SWX group. These indexes are tradable on the futures and options market and are also used as benchmarks for funds that trade in the European and global markets. The Dow Jones Industrial Average in the U.S. is similar to the Dow Jones STOXX 50 Index.

options strategy long straddle: purchase of a call and a put option with identical strikes short straddle: sale of a call and a put option with identical strikes (usually at the money)

v. fixed rate bond

an interbank-deposit with a straight maturity, i.e. with entire months

options strategy long strangle: purchase of a call and a put with different strikes, both out of the money short strangle: sale of a call and a put with different strikes, both out of the money