Guide to Analysing Companies

SPV
See special-purpose vehicle.
Stag
Somebody who speculates that an issue of securities will be
oversubscribed. Stags order more securities than they can
afford, knowing that if the offer is oversubscribed they will get
fewer shares than they requested and, more importantly, that
an oversubscribed issue is almost certain to sell at a premium
to the offer price as soon as trading starts in the secondary
market. The stag thus hopes to make a handsome profit, a
practice known (if successful) as stagging an issue. In the United
States, the term is used generally to apply to somebody who
aims to make a quick profit by buying a security and then
selling it on.
Standing order
An instruction from a customer to a bank to make a regular
(often monthly) payment of a fixed amount to a named creditor
or recipient.
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STANDING ORDER
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Stock
For almost all intents and purposes the same as a share. Stock
refers to the stock of capital belonging to a company, its
common stock, preferred stock and so on. Shareholders are
people (or institutions) with a share in this stock.
Stockbroker
A member of a stock exchange who is authorised to deal in
securities. Stockbrokers charge a commission, usually
related to the size of the deal and the frequency with which the
customer trades, for their services. So when stockmarkets
are rising and trading volumes are high, brokers generally do
well. A stockbroker acts as an agent on behalf of a client,
usually an investor. Contrast with a market maker, who
stands ready to buy and sell (that is, to make a market in) certain
types of securities and is somebody with whom a broker deals.
(See also registered representative.)
Stock dividend
The payment of stock in lieu of a cash dividend. With a
5% stock dividend, shareholders receive five new shares for
every 100 that they already own. If these are newly issued
shares, then the shareholders are getting less than some might
expect. In this case, it is more akin to a scrip issue, which
simply divides the same amount of equity into smaller
chunks.
Stock exchange
Traditionally, the physical place where securities were bought
and sold. Stock exchanges are often found in grand 19th-century
buildings in the centre of capital cities. Nowadays, more and
more dealing is done by brokers sitting in their offices and