At the Close
A condition of filling a stock purchase order. This trade order specifically instructs that the transaction is to be filled in the last trade of the day for a particular security. If not filled on the stated day, the order is cancelled.
At the Open
A condition of filling a stock purchase order. This trade order specifically instructs that the transaction is to be filled in the first trade of the day for a particular security. If not filled on the stated day, the order is cancelled.
Away From The Market
This term applies to a stock order that cannot be executed because it is above or below the current bid or ask. If you place a "limit order" with a stockbroker, you may be "Away From The Market." For example, If you place a limit order to buy 100 shares of IBM at $100 and IBM is selling for $150, your order is "Away From The Market."
Bid
This is the quoted bid, or the highest price any investor is willing to pay for a security. This is the market price at which an investor can sell shares of stock.
Block
Transaction involving a large number of shares. Blocks are often exchanged at a discount to the current market --- as an accepted cost of trading a large number of shares "Away From The Market."
Blowout
Slang term referring to a stock sale involving a large number of shares. The sale is made without regard for the demand for shares or the potential effect on the stock price.
Fill or Kill
Placing an order with the instruction to a broker to execute a market order immediately or cancel it. This strategy is normally used buy the investor who wants to buy a large quantity of shares of a stock at a specific price.
Good till Canceled Order (GTC)
Order to buy or sell a security, usually a limit order. The order remains active until you cancel it. Brokerages may set a time limit of 30-60 days, at which time the GTC order expires.
GTC (Good till Canceled Order)
See "Good till Canceled Order (GTC)"
Initial Margin
The amount of cash or eligible securities required to purchase an additional security on Margin. The balance of purchase cost is borrowed from the Broker. The Federal Reserve Board sets the Margin requirements.
See "Margin Account"
Margin
Futures: Good faith deposit an investor must put up to buy or sell a contract. If the contract price moves against the investor, the investor must put up more money to meet the margin requirement.
Securities: Another term for Initial Margin. See "Initial Margin" and "Margin Account"
Margin Account
Brokerage account that allows customers to borrow from the Broker to cover a portion of the purchase price of a security transaction. Margin Accounts can be met with cash or with eligible securities held by the Broker. Margin Accounts are governed by Regulation T.
Margin Requirement
See "Initial Margin"
Margin Securities
Describes those securities that may be purchased or sold in a Margin Account. The main categories of securities that can be bought/sold in a margin account: all registered securities and U.S Government Securities, and municipal bonds.
See "Margin Account"
Regulation T
Covers the extension of credit to customers by securities brokers, dealers, and members of the national securities exchange. The Federal Reserve Board controls the conditions of Regulation T. It establishes Initial Margin requirements and determines securities that can be used to cover the Initial Margin requirements.
See "Margin Account"
