Terms Beginning With 's'

Stock Compensation

Stock compensation is a type of compensation or reward given to employees by the employer. An employee with a stock option must be aware whether the stock is fully vested and will hold the full value even after he/she is no more employed with that company.

Stock compensation is generally famous among startups, which use stock options as part of salary since they typically do not have cash to pay employees at a competitive rate.

Difference between actual and an expected return. For example, if a stock increased by 7% because of some update, but the average market only increased by 3% and the stock has a beta of 1, then the abnormal return was 4% (7% - 3% = 4%)

An Insurance policy which provides compensation to the nominee in occurrence of an accident or death. It is usually light on the pocket and perceived as an added benefit to an existing

Compensation to the nominee in case of an accidental death insurance policy. It is paid exclusive to the conventional benefits shared if the insurer died from natural causes.

An alternative to traditional stock exchanges, dark pools are referred to private forums or exchanges formed for trading of securities. They offer an opportunity to investors to make trades without revealing their intentions publicly.

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