Secured loans
Describes securities assets held by a broker on behalf of a client but registered in
the name of the Wall Street firm.
Strike index
For a stock index option, the index value at which the buyer of the option can buy
or sell the underlying stock index. The strike index is converted to a dollar value
by multiplying by the options contract multiple. Related: strike price
Strike price
The stated price per share for which underlying stock may be purchased (in the
case of a call) or sold (in the case of a put) by the option holder upon exercise of
the option contract.
Strip, strap
Variants of a straddle. A strip is two puts and one call on a stock, a strap is two
calls and one put on a stock. In both cases, the puts and calls have the same
strike price and expiration date.
Strip mortgage participation certificate (strip PC)
Ownership interests in specified mortgages purchased by Freddie Mac from a
single seller in exchange for strip PCs representing interests in the same
mortgages.
Stripped bond
Bond that can be subdivided into a series of zero-coupon bonds.
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the underlying generic M.B.S.
collateral into the principal and interest components of the M.B.S. to enhance
their use in meeting special needs of investors.
Stripped yield
Mainly applies to convertible securities. Return on the debt portion of a
bond/warrant unit after subtracting the value of the issued warrant segment.
Strong-form efficiency
