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Shooting Star Definition A shooting star is a one-day bearish candlestick pattern that can signal a short-term reversal after an uptrend. It has: * A small real body positioned near the low of the session (small difference between open and close). * A long upper shadow at least twice the length of the body. *…

Sherman Antitrust Act Overview The Sherman Antitrust Act is a foundational U.S. law enacted in 1890 to preserve competition in interstate commerce by prohibiting agreements and conduct that restrain trade or create monopolies. Proposed by Senator John Sherman, the law was the first federal effort to limit the power of trusts, cartels, and other combinations…

What Is a Shell Corporation? How It’s Used, Examples and Legality A shell corporation is a company that has no active business operations or significant assets. While not inherently illegal, shell corporations are flexible legal entities that can be used for legitimate corporate purposes or misused to hide ownership, evade taxes, or facilitate illicit activity….

Sharpe Ratio: Definition, Formula, and Use What the Sharpe ratio measures The Sharpe ratio quantifies risk-adjusted return. It shows how much excess return an investment generates per unit of total volatility. A higher Sharpe indicates better risk-adjusted performance; a negative Sharpe means the risk-free rate exceeds the investment’s return (or the investment has a negative…

Understanding the Sharing Economy: Definition, Mechanics, Criticisms, and Alternatives What is the sharing economy? The sharing economy (also called the share economy, collaborative consumption, or peer economy) is a peer-to-peer model that lets individuals monetize underused assets or time through online platforms. Examples include short-term rentals of cars and spare rooms, ride sharing, coworking spaces,…

Shares: Understanding Units of Corporate Ownership What are shares? Shares are individual units of ownership in a company. The term “stock” refers to the equity instrument a corporation issues; a “share” is a single unit of that stock. Shares give investors a claim on a company’s assets and earnings but are not a debt obligation…

Shareholders’ Agreement A shareholders’ agreement is a private contract among a company’s shareholders that sets out their rights, obligations, and how the company will be run. It supplements (but does not replace) the company’s articles of incorporation and bylaws by addressing practical relationships among shareholders, share transfers, decision-making and protections for minority investors. It is…

Shareholder Value Added (SVA) What SVA measures Shareholder Value Added (SVA) quantifies the operating profit a company generates above the cost of funding that profit. In other words, it shows whether a firm’s core operations produce returns that exceed its capital costs. Formula SVA = NOPAT − Cost of Capital Explore More Resources › Read…

Shareholder Value Shareholder value measures the financial benefits a company delivers to its equity owners. It reflects how well a firm’s strategic decisions—about investments, operations, financing, and returns to shareholders—translate into higher earnings, free cash flow, dividends, and share price appreciation. Maximizing shareholder value is a primary objective for many firms, but achieving it requires…

Shareholder Equity Ratio Definition The shareholder equity ratio measures the proportion of a company’s assets financed by shareholders’ equity rather than by debt. It shows the extent to which owners (shareholders) have a residual claim on the company’s assets and is calculated from figures on the balance sheet. Formula Shareholder Equity Ratio = Total Shareholders’…

What is Shareholder Equity (SE)? Shareholder equity is a company’s net worth: total assets minus total liabilities. It represents the residual value that would be available to shareholders if the company liquidated and paid all its debts. SE appears on the balance sheet and reflects owners’ claims against the company. Why it matters Indicates how…

Shareholder Activist What is a shareholder activist? A shareholder activist is an investor who uses their ownership rights in a publicly traded company to push for change. Activists can be individuals, hedge funds, pension funds, or other institutional investors. They typically buy a minority stake and then attempt to influence corporate strategy, governance, allocation of…

Shareholder (Stockholder): Definition, Rights, and Types A shareholder is a person, company, or institution that owns one or more shares of a company’s stock or a mutual fund. Shareholders jointly own the company in proportion to their holdings and participate in its financial outcomes: gains through stock price appreciation and dividends, or losses if the…

What is a share repurchase (buyback)? A share repurchase happens when a public company buys back its own shares, either on the open market or through a tender offer. Repurchased shares are typically canceled or held as treasury shares, reducing the number of shares outstanding. Fewer outstanding shares raise earnings per share (EPS) mathematically, which…

Share of Wallet (SOW) What is Share of Wallet? Share of wallet (SOW) is the portion of a customer’s total spending within a product category that goes to a particular brand. It measures how much of a customer’s budget for a category—food, banking, personal care, etc.—is captured by one company compared with competitors. A simple…

Understanding Share Classes: Types, Rights, and Key Features Definition A share class is a designation (for example, Class A or Class B) that distinguishes shares of the same company or mutual fund by the rights, privileges, fees, and expenses attached to them. Different share classes may carry different voting power, fee structures, or eligibility requirements….

Share Certificate: Definition, How It Works, and Key Information Key takeaways * A share certificate (stock certificate) is a written document evidencing ownership of a specified number of shares in a company. * Physical certificates have largely been replaced by electronic records; legal and tax rights are the same whether ownership is certificated or electronic….

Shadow Pricing: Understanding Value Assessment for Intangibles Shadow pricing assigns a monetary value to goods, services, or impacts that lack a market price. It is commonly used in cost‑benefit analysis to quantify intangible benefits or externalities so decision‑makers can compare projects and policies on a common financial basis. Because shadow prices are estimates based on…

Shadow Banking System The shadow banking system comprises financial intermediaries that create credit outside the scope of traditional bank regulation. These nonbank financial companies (NBFCs) — such as investment funds, mortgage lenders, hedge funds, and some broker-dealers — perform bank-like functions (credit intermediation) but typically do not take insured demand deposits or operate under the…

Severance Pay Key takeaways Severance pay is compensation employers may offer to employees whose positions are eliminated or who are laid off. It can include cash, continued benefits, and services (e.g., health insurance, outplacement). Employers are not required by federal law to provide severance unless a contract, handbook, or promise says so. Severance is taxable…

What Is the Service Sector? The service sector (tertiary sector) produces intangible goods—services—rather than physical products. It encompasses activities that help people, support businesses, or perform tasks such as healthcare, education, transportation, finance, professional services, entertainment, and waste management. Key Characteristics Focus on intangible output: services, expertise, maintenance, consulting, and experiences. Wide range of industries:…

Service Charge: Definition, Types, and Why It’s Not a Tip Definition A service charge is a fee added to the cost of a primary product or service to cover services, administrative costs, or processing related to that purchase. It is collected by the business at the time of the transaction and is paid to the…

What is a Series EE Bond? A Series EE bond is a U.S. Treasury savings bond—also called a “Patriot Bond” on some paper issues—that is non-marketable and backed by the federal government. It is designed as a low-risk, interest-bearing savings vehicle with a guarantee to at least double in value over the typical 20-year initial…

Series B Financing What is Series B financing? Series B financing is the second major equity funding round a company pursues after completing Series A. It typically occurs once a company has demonstrated product-market fit, predictable revenue growth, and operational traction. Series B capital is used to scale the business—expand sales and marketing, grow teams,…

Series 66: What it Is and How the Exam Works Key takeaways * The Series 66 (Uniform Combined State Law Examination) qualifies individuals to act as investment adviser representatives (IARs) and securities agents at the state level. * Candidates must also hold (or pass) the FINRA Series 7 exam; Series 66 essentially combines the content…

Series 65: What It Is and How to Prepare What is the Series 65? The Series 65, officially the Uniform Investment Adviser Law Exam, is required for individuals who want to act as investment adviser representatives (IARs) in most U.S. states. It tests knowledge of investment vehicles, economics, portfolio strategies, laws and regulations, and ethical/fiduciary…

Series 63: Definition, Requirements, Topics, and How It Compares to Other Securities Exams What the Series 63 Is The Series 63 (Uniform Securities Agent State Law Examination) tests knowledge of state securities laws—often called “blue sky laws”—and ethical practices for securities representatives. Developed by NASAA and administered by FINRA, the exam ensures agents understand state-level…

Series 57 Series 57, the Securities Trader Representative Exam, is administered by the Financial Industry Regulatory Authority (FINRA). It qualifies individuals to trade equity and convertible-debt securities on exchanges (such as Nasdaq), over-the-counter (OTC) markets, and for proprietary trading desks. The exam exists to ensure traders meet professional standards of knowledge and ethical conduct. Key…

Series 24 (General Securities Principal Exam) Key takeaways The Series 24 license authorizes holders to supervise and manage general broker‑dealer activities, including trading, market‑making, underwriting, advertising, and compliance. Eligibility generally requires the Securities Industry Essentials (SIE) exam plus one representative‑level qualification (for example, Series 7, 57, 79, 82, or 86/87); other combinations may apply. The…

Series 9/10 — General Securities Sales Supervisor Exams Overview Series 9 and Series 10 are the two parts of the General Securities Sales Supervisor qualification administered by FINRA. Together they qualify a candidate to supervise sales activities at a general securities–oriented branch office. Candidates must already hold the Series 7 (General Securities Representative) license and…

Series 7: Overview, Requirements, and Exam Structure The Series 7, formally the General Securities Representative Qualification Exam, is administered by FINRA and qualifies individuals to sell a broad range of securities products (for example, stocks and bonds). It does not qualify holders to sell commodities, futures, real estate, or insurance products. Passing the Series 7…

Key takeaways The FINRA Series 6 license permits a registered representative to sell certain packaged investment products: mutual funds, variable annuities, variable life insurance, unit investment trusts (UITs), and municipal fund securities. Candidates must pass the Series 6 exam and be sponsored by a FINRA member firm or other self-regulatory organization (SRO). The Series 6…

Series 3 (National Commodities Futures Examination) Key points * The Series 3 is the exam required by the National Futures Association (NFA) for most professionals who sell commodity futures and options on futures in the U.S. * It is administered by FINRA on behalf of the NFA. * Passing the Series 3 allows registration with…

Series I Bonds: What they are and how they work Series I Savings Bonds (I Bonds) are U.S. Treasury savings bonds designed to protect investors from inflation while preserving principal. They are non-marketable (cannot be traded on a secondary market), backed by the full faith and credit of the U.S. government, and intended as a…

Serial Correlation: Definition, Detection, and Financial Implications Key takeaways * Serial correlation (autocorrelation) measures the relationship between a variable and a lagged version of itself over time. * A nonzero serial correlation means observations are not independent; the series has memory and is not purely random. * In modeling, serial correlation of error terms indicates…