Pricing efficiency, where the price of a security reflects all information, whether or
not it is publicly available. Related:Weak form efficiency, semi strong form
efficiency
Structured arbitrage transaction
A self-funding, self-hedged series of transactions that usually utilize mortgage
backed securities (M.B.S.) as the primary assets.
Structured debt
Debt that has been customized for the buyer, often by incorporating unusual
options.
Structured portfolio strategy
A strategy in which a portfolio is designed to achieve the performance of some
predetermined liabilities that must be paid out in the future.
Structured settlement
An agreement in settlement of a lawsuit involving specific payments made over a
period of time. Property and casualty insurance companies often buy life
insurance products to pay the costs of such settlements.
Stub
Often used in risk arbitrage. Piece of equity security left over from a major cash
or security distribution from a recapitalization.
Subject
Refers to a bid or offer that cannot be executed without confirmation from the
customer. In other words, not firm, but a bid/offer that needs additional
information/confirmation before becoming firm and is therefore still negotiable.
Subjective probabilities
Probabilities that are determined subjectively (for example, on the basis of
judgement rather than using statistical sampling).
Subject market
Used in the context of general equities. Quote in which prices are subject to
confirmation. See: fast market.
