Indenture

Indenture – A written agreement under which bonds and debentures are issued, setting forth maturity date, interest rate and other terms

Hypothecation

Hypothecation – The pledging of securities as collateral - for example, to secure the debit balance in amargin account

ndex

Index – A statistical yardstickexpressed in terms of percentages of a base year oryears. For instance, the NYSE Composite Index of all NYSEcommon stocks is based on 1965 as 50. An index is not an average

Holding company

Holding company – A corporation that owns the securities of another, in most cases with voting control.

Institutional investor

Institutional investor – An organization whose primary purpose is to invest its own assets or those held in trust by it for others. Includes pension funds, investment companies, insurance companies, universities and banks

Good 'til canceled (GTC)

Good 'til canceled (GTC) or open order - An order to buy or sell that remains in effect until it is either executed or canceled.

Intermarket Trading System (ITS)

Intermarket Trading System (ITS) – An electronic communications network now linking the trading floorof seven registered exchanges and FINRA to foster competition among them in stocks listed on either the NYSE or AMEX and one or more regional exchanges. Through ITS, anybroker or market maker on the floor of any participating market can reach out to other participants for an execution whenever the nationwide quote shows a better price is available

Gold fix (GF)

Gold fix – The setting of the price of gold by dealers (especially in a twice-daily London meeting at the central bank); the fix is the fundamental worldwide price for setting prices of gold bullion and gold-related contracts and products.

Investment banker – Also known as an underwriter. The middleman between thecorporation issuing new securities and the public. The usual practice is for one or more investment bankers to buy outright from a corporation a new issue of stocks or bonds. The group forms a syndicate to sell the securities to individuals and institutions. Investment bankers also distribute very large blocks of stocks or bonds - perhaps held by an estate.

General mortgage bond (GMB)

General mortgage bond – A bond that is secured by a blanket mortgage on the company's property but maybe outranked by one or more other mortgages.