Price that the existing shareholders are allowed to pay for a share of stock in a
rights offering.
Subscription warrant
Applies to derivative products. Type of security, usually issued with another
security, such as a bond or stock, that entitles the holder to buy a proportionate
amount of common stock at a specified price, usually higher than the market
price at the time of issuance. Warrant.
Subsidiary
A wholly or partially owned company which is part of a large corporation. A
foreign subsidiary is a separately incorporated entity under the host country's
law.
Substitute sale
A method for hedging price risk that utilizes debt-market instruments, such as
interest rate futures, or that involves selling borrowed securities as the primary
assets.
Substitution swap
A swap in which a money manager exchanges one bond for another bond that is
similar in terms of coupon, maturity, and credit quality, but offers a higher yield.
Sum-of-the-years-digits depreciation
Method of accelerated depreciation.
unk Scosts
Costs that have been incurred and cannot be reversed.
Super DOT
Super D.O.T. provides faster execution than regular D.O.T. and focuses on
large-size trades and baskets. See: program trading.
Supermajority
Provision in a company's charter requiring a majority of, say, 80% of
shareholders to approve certain changes, such as a merger.
Supermajority amendment
