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Key Takeaways * A winner-takes-all market is one in which top performers capture a disproportionately large share of rewards while most competitors gain little. * Technology, network effects, economies of scale, and low marginal costs amplify winner-takes-all dynamics. * Outcomes often include oligopoly or monopoly, greater wealth concentration, and reduced competitive opportunities. * Policy tools…

Windstorm Insurance: What It Means, How It Works Key takeaways Windstorm insurance protects property and belongings from damage caused by high winds, hail, tornadoes, hurricanes and similar gusty events. It’s commonly offered as an endorsement or rider to a standard homeowners policy and may be required by mortgage lenders in high-risk areas. Wind damage coverage…

What is a window of opportunity? A window of opportunity is a short, often fleeting period during which an action—such as investing, acquiring an asset, or launching a product—can produce a disproportionately valuable outcome. Once the window closes, the same chance may not return. In competitive markets, these windows drive behavior among investors, companies, and…

Window Guaranteed Investment Contract (WGIC) A window guaranteed investment contract (WGIC) is a type of contract sold by insurance companies that guarantees a rate of return on installment contributions made during a defined “window” period. WGICs are commonly used in 401(k) and other defined-contribution retirement plans to provide a conservative, predictable investment option. Key takeaways…

Window Dressing in Finance Window dressing refers to actions taken by fund managers or company executives to make financial results or portfolios look better than they actually are. It appears most often in mutual funds and corporate accounting and can mislead investors, lenders, and other stakeholders. Detecting it is essential for making informed financial decisions….

Straight-line basis The straight-line basis is a simple method for allocating an asset’s cost as an expense over its useful life. It assumes the asset loses value evenly each accounting period, producing a constant depreciation or amortization charge. How it works Determine the asset’s purchase price (cost). Estimate the salvage (residual) value at the end…

Straddle: Options Strategy Explained What is a straddle? A straddle is an options strategy that involves buying both a call and a put on the same underlying asset with the same strike price and expiration date. It is a market‑neutral, volatility‑driven trade: the investor profits if the underlying moves significantly in either direction, and loses…

Store of Value: Definition, How It Works, and Examples Key takeaways * A store of value is an asset, commodity, or currency that can be saved and retrieved later without significant loss of purchasing power. * Durable, scarce, and widely accepted assets—like gold, certain currencies, and government bonds—are commonly used as stores of value. *…

How to Stop Payment on a Check A stop payment is a request you make to your bank to prevent a check from being paid before it clears. It can stop incorrect amounts, unauthorized withdrawals, or lost/stolen checks — but it must be done promptly and typically incurs a fee. Key points A stop payment…

Stop Orders: Types, Uses, and Placement Strategies Key takeaways A stop order becomes a market order when a specified price (the stop) is reached; it’s used to limit losses or enter trades on momentum. Main types: stop-loss (exit losing positions), stop-entry (enter on a breakout), and trailing stop-loss (lock in gains as price moves favorably)….

Stop-Loss Order A stop-loss order is an instruction to your broker to buy or sell a security once its price reaches a specified level (the stop price). When the stop price is hit, the stop-loss becomes a market order and is executed at the next available price. Traders and investors use stop-loss orders to limit…

Stop‑Limit Order Key takeaways A stop‑limit order combines a stop (trigger) price and a limit (execution) price. When the stop price is reached the order becomes a limit order and will only fill at the limit price or better. It gives price control but does not guarantee execution — especially vulnerable to fast moves and…

Stockholders’ Equity Stockholders’ equity (shareholders’ equity) is the residual value of a company’s assets after subtracting its liabilities. It represents the owners’ claim on the business and is commonly called the company’s book value. On a balance sheet, stockholders’ equity shows what would remain for shareholders if the company liquidated all assets and paid off…

Stockbroker — Roles, Types, Requirements & Pay Key takeaways * A stockbroker executes buy and sell orders for clients and typically works for a brokerage firm. * Two main types: full-service brokers (advice and portfolio management) and discount brokers (trade execution at lower cost). * Licensing and exams (e.g., FINRA Series exams in the U.S.)…

Stock Symbol (Ticker) A stock symbol—commonly called a ticker symbol—is a short arrangement of letters (and sometimes numbers or suffixes) used to uniquely identify a publicly traded security on an exchange. Symbols make it quick and unambiguous to track, quote, and trade individual securities. Key takeaways Stock symbols are short codes (typically 1–5 characters) that…

What is a stock split? A stock split is a corporate action that increases (or decreases) the number of a company’s outstanding shares while proportionally adjusting the share price so total market capitalization remains the same. It does not change the company’s fundamental value or an investor’s percentage ownership. Simple analogy: cutting a cake into…

Stock Screeners: What They Are and How to Use Them Key takeaways * A stock screener is a tool that filters thousands of securities using user-defined criteria to help identify investment opportunities. * Combining fundamental and technical filters improves precision — e.g., P/E or dividend yield plus indicators like moving averages or RSI. * Use…

Stock Quote: What It Means and How to Read One What is a stock quote? A stock quote is the current price of a stock as displayed on an exchange, usually shown with supplemental trading information. It summarizes recent trading activity and helps investors see how a security is priced at a glance. Key takeaways…

Stock Options: A Practical Guide What is a stock option? A stock option is a contract that gives the holder the right — but not the obligation — to buy or sell a specific number of shares of an underlying stock at a predetermined price (the strike price) before or on a specified expiration date….

Stock Market Crash A stock market crash is a rapid, steep decline in stock prices, typically driven by major economic events, collapsing speculative bubbles, or widespread panic. Crashes can trigger broader economic damage, erasing wealth and sometimes contributing to recessions or depressions. Key characteristics Sudden, often double-digit percentage drops in major indexes over days (or…

What is the stock market? The stock market is the network of exchanges and over-the-counter (OTC) venues where investors buy and sell shares of publicly traded companies and other financial instruments. It includes formal exchanges such as the New York Stock Exchange (NYSE) and Nasdaq, as well as broker-dealer networks and electronic trading platforms. The…

Stock Keeping Unit (SKU) What is an SKU? A stock-keeping unit (SKU) is a unique identifier—often an alphanumeric code plus a barcode—assigned by a retailer to a product (or a billable service). SKUs let businesses identify and track individual items across sales, inventory, and shipping processes. How SKUs work Each SKU is unique to the…

What is a Stock Exchange-Traded Fund (ETF)? A stock exchange-traded fund (stock ETF) is a tradable security that holds a basket of equities and is designed to track the performance of a specific index, sector, industry, or set of stocks. Like individual stocks, ETFs trade on exchanges throughout the trading day, and their prices fluctuate…

Understanding SEDOL: UK Securities Identification What is SEDOL? SEDOL (Stock Exchange Daily Official List) is a seven-character alphanumeric identifier assigned to securities traded on the London Stock Exchange and other UK exchanges. It’s used to identify listed and unlisted securities across asset classes (stocks, unit trusts, investment trusts, insurance-linked securities, etc.) and is recognized internationally….

Stock Dividend Key takeaways A stock dividend pays shareholders additional company shares instead of cash, preserving corporate cash while increasing outstanding shares. Stock dividends typically are not taxed when received; tax consequences usually arise when shares are sold (check local tax rules). Issuing new shares dilutes earnings per share (EPS) and ownership percentage unless earnings…

Stock Compensation What is stock compensation? Stock compensation is a form of employee pay that uses company equity—options, restricted shares, or similar instruments—to reward, retain, and motivate staff. It gives employees a stake in the company’s future value and is commonly used by startups and growth companies that may have limited cash for salaries. Explore…

Stock Appreciation Rights (SARs) Stock Appreciation Rights (SARs) are a form of employee compensation that lets recipients capture the economic gain from an increase in a company’s stock price without purchasing shares. They provide a payout equal to the appreciation in the stock price over a specified period and can be settled in cash, shares,…

Stock Analysis: A Concise Guide to Fundamental, Technical, and Alternative Methods What is stock analysis? Stock analysis is the process of evaluating a security, sector, or market to inform buy/sell decisions and estimate future price movements. Analysts use historical and current data—financial statements, price action, market indicators, and industry trends—to form an investment thesis. Key…

Stocks: What They Are and How They Differ From Bonds Key takeaways * A stock (or share) represents fractional ownership in the company that issued it. * Companies issue stock to raise capital; investors buy shares to gain exposure to potential profits and growth. * Two main types of stock are common and preferred, each…

Stochastic RSI (StochRSI) Stochastic RSI (StochRSI) is a momentum oscillator that applies the stochastic formula to Relative Strength Index (RSI) values instead of price. It rescales RSI readings into a 0–1 (or 0–100) range to highlight overbought/oversold conditions and short-term momentum more sensitively than the traditional RSI. Formula StochRSI = (RSI − min(RSI)) / (max(RSI)…

Stochastic Oscillator A stochastic oscillator is a momentum indicator that compares a security’s most recent closing price to its high-low range over a specified period (typically 14 periods). It’s range-bound between 0 and 100 and is used to identify overbought/oversold conditions and potential trend reversals. Key points Measures where the close sits within a recent…

Stochastic Modeling: Definition, Uses, and Advantages Overview Stochastic modeling uses random variables and probability distributions to forecast a range of possible outcomes rather than a single fixed result. By incorporating uncertainty directly into the model, it produces distributions of potential outcomes and their associated probabilities, which is useful when inputs or system behavior are unpredictable….

Stipend: Definition, Types, Benefits, and Tax Considerations Key takeaways * A stipend is a fixed payment intended to help cover living or training-related expenses during unpaid or low-paid roles. * Stipends are commonly given to interns, apprentices, students, fellows, and clergy. * Employers often do not withhold payroll taxes on stipends; recipients are typically responsible…

Sticky Wage Theory: Definition and Importance in Economics Key takeaways * Sticky wage theory holds that nominal wages resist downward adjustment even when economic conditions weaken. * Because wages are “sticky-down,” firms often reduce employment rather than cut wages, which can amplify unemployment during downturns. * Inflation can erode real wages over time, so nominal…

Sterling Overnight Index Average (SONIA) Key takeaways SONIA is the Bank of England’s benchmark for unsecured overnight sterling borrowing. It reflects the average interest rate for eligible overnight transactions among banks and large institutions. Revisions since 2016–2018 broadened its data coverage and changed the calculation to a volume‑weighted trimmed mean. SONIA is the preferred near–risk‑free…