Stock Rights
Stock rights, also known as subscription rights or warrants, are financial instruments that give existing shareholders the right, but not the obligation, to purchase additional shares of a company at a predetermined price before a specified expiration date.
Stock Split
A stock split increases the number of a corporation's outstanding shares while making the stock more marketable, without altering shareholders' equity or the overall market value at the time of the split.
Stock Split
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases, the value of each share is reduced proportionately, so the total market capitalization remains the same.
Stock Symbol
A stock symbol, also known as a trading symbol, is an abbreviation (typically one to four letters) that uniquely identifies publicly-traded companies on stock exchanges.
Stock Transfer
Stock transfer refers to the process of transferring the ownership of stock or shares from one person to another. It's a critical mechanism in corporate finance that enables the buying and selling of company shares in the stock market.
Stock Turnover
Stock turnover, also known as inventory turnover, is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.
Stock Valuation
Stock valuation is the process of determining the intrinsic value of a company's stock, which helps investors make informed decisions about buying, selling, or holding shares.
Stock vs. Flow
In economics, 'stock' represents a quantity measured at a particular moment in time, while 'flow' represents a quantity measured over a specified period.
Stock Watering
Stock watering refers to various practices in which a company inflates the value of its assets or exaggerates its profits to issue more shares than justified. Historically notable during the US railway boom of the late 19th century, this practice constitutes fraudulent behavior.
Stock-for-Asset Reorganization
Stock-for-asset reorganization is a form of corporate restructuring where an acquiring corporation exchanges its voting stock (or its parent's voting stock) for substantially all of the assets of another corporation.
Stock-For-Stock Reorganization
A form of reorganization where one corporation acquires at least 80% of another corporation's stock in exchange solely for all or part of its own (or its parent's) voting stock, transforming the acquired corporation into a subsidiary.
Stock-in-Trade
Stock-in-trade refers to the merchandise or goods available to a business for sale to customers. It is integral to a company's operations and directly impacts revenue.
Stock-Out
A stock-out occurs when the inventory of a particular item is depleted, leading to a situation where no stock remains in store available for sale or use.
Stock-Transfer Agent
A stock-transfer agent acts as a third-party intermediary to manage and maintain a company’s records of its shareholders, executing various tasks such as managing securities transfers, handling lost certificates, and distributing dividends.
Stockbroker
An agent who buys and sells securities on a stock exchange on behalf of clients and earns commission for this service.
Stockholder
A stockholder, also referred to as a shareholder, is an individual or organization that holds at least one share of a company's stock, granting them fractional ownership in the corporation.
Stockholder of Record
A common or preferred stockholder whose name is registered on the books of a corporation as owning shares as of a particular date. Dividends and other distributions are made only to shareholders of record.
Stockholders
In the USA, individuals, businesses, and groups that own stocks in a corporation are known as stockholders. They hold a portion of the corporation's equity.
Stockholders' Derivative Action
A Stockholders' Derivative Action is a lawsuit filed by shareholders on behalf of a corporation. Such a suit aims to address grievances suffered primarily by the corporation, typically due to breaches of fiduciary duty by those managing the corporation. It's often the only civil remedy available to a stockholder for such breaches.
Stockholders' Equity
Stockholders' equity represents the ownership interest of shareholders in a corporation, calculated as the difference between total assets and total liabilities.
Stockjobber
A stockjobber is an outdated term that refers to a professional trader who buys and sells stocks for their own account, not for clients. This term was more commonly used in historical contexts related to stock trading.
Stockkeeping Unit (SKU)
A Stockkeeping Unit (SKU) is a unique identifier for each distinct product and service that can be purchased. It helps in tracking inventory and simplifying sales processes.
Stockkeeping Unit (SKU)
A Stockkeeping Unit (SKU) is a unique identifier or code, typically alphanumeric, assigned to a product to distinguish it from all other products in a merchant's inventory. It facilitates tracking, managing, and organizing stock effectively.
Stockout Cost
Stockout cost refers to the costs incurred by a firm when its current inventory is exhausted for one or more items. Lost sales revenue is a primary consequence when the firm is unable to meet current orders because of a stockout condition.
Stockpile
A stockpile is a reserve supply of raw materials or goods accumulated to meet continuous or future demands and overcome potential shortages. Businesses often maintain stockpiles to ensure smooth operations during unforeseen disruptions in supply chains.
Stockroom
A stockroom is an area or room where stock of goods, materials, and other supplies are maintained, often used in commercial and industrial settings for inventory management, storage, and organization.
Stocks, Bonds, Bills & Inflation (SBBI)
Annual publication by Ibbotson & Associates that provides long-term historical data on various financial instruments including stocks, bonds, treasury bills, and inflation.
Stocktaking
Stocktaking is the process of counting and evaluating stock-in-trade, typically carried out at an organization's year end to value the total stock for final accounting purposes.
Stonewalling
Stonewalling refers to the act of refusing to acknowledge a situation, provide necessary cooperation, or engage in meaningful conversation, despite overwhelming evidence or the necessity for dialogue.
Stool Pigeon
A stool pigeon is a spy or police informant who betrays another person's confidences to the authorities.
Stop Clause
A clause in a lease agreement that stipulates the amount of operating expenses above which the tenant is required to pay. It protects the lessor by ensuring that any increase in operating expenses is covered by the tenant once a predefined threshold is reached.
Stop Order
A stop order is a directive given to a securities broker to buy or sell a security at the market price once the specific stop price has been reached. This type of order is primarily used to protect profits and limit losses.
Stop Payment
A stop payment is the revocation of payment on a check after the check has been sent or delivered to the payee. So long as the check has not been cashed, the writer has up to six months to request a stop payment. The stop payment right does not apply to electronic funds transfers.
Stop-Loss Order
A stop-loss order is a directive given by an investor to a broker to sell a financial instrument, such as a stock, when it reaches a specified price point in order to cap the investor's loss.
Stopwatch Studies
Stopwatch studies are time and motion studies performed on work procedures by management as part of Frederick W. Taylor's Scientific Management. This method involves using a stopwatch to accurately time procedures in performing a job.
Store
An establishment used for the purpose of selling merchandise and services, usually at the retail level. Stores range in size from small boutique shops to large modern big box retailers.
Store Brand
A store brand, also known as a private label, refers to products that are manufactured by one company but sold under another company's brand, typically a retailer's own brand name.
Store Card
A store card is a specific type of card used within a particular store or organization to record and control inventory movements and levels.
Store Requisition
A store requisition is a document generated by user departments or individuals in an organization to request raw materials or supplies from the store or warehouse. It facilitates the internal movement and management of inventory within a company.
Storekeepers Burglary and Robbery Insurance
Comprehensive coverage designed for small mercantile establishments, providing protection against losses from burglary, robbery, and related crimes.
Storekeepers Liability Insurance
Coverage for bodily injury and property damage liability resulting from ownership, use, and/or maintenance of the insured business's premises, completed operations, and products. It includes medical payment expenses for bodily injuries caused by hazardous conditions and defense costs for liability suits.
Stores in Accounting
Stores in accounting refer to the part of an organization where various inventories are stored, which can include stationery stocks, maintenance components, production tools, raw materials, work in progress, and finished goods.
Stores Issue Note (SIN)
Abbreviation for Stores Issue Note, a document used in inventory and material management to authorize the withdrawal of materials from storage.
Stores Issue Note (SIN)
A Stores Issue Note (SIN) is a document used in inventory management to authorize the release or issue of inventory items from the warehouse to the production department or other requesting departments.
Stores Oncost
In accounting, stores oncost refers to the indirect costs or overheads associated with handling and storing materials used in production. These costs are not directly attributed to the cost of the raw materials themselves but are necessary for the overall production process.
Stores Returns Note (SRN)
A Stores Returns Note (SRN) is a document used to record the return of materials to the store or warehouse, often for reasons such as quality issues, over-ordering, or incorrect items delivered. It ensures accurate inventory management and financial accountability.
Stores Returns Note (SRN)
A Stores Returns Note (SRN) is a document used in accounting and inventory management to record the return of goods or materials back to the warehouse or supplier. This notation is crucial for adjustments in inventory levels and accurate record-keeping in financial and material management systems.
Stowage
Stowage refers to the methodical arrangement of freight in a ship's storage area to minimize risk to both the vessel and its cargo, optimizing space usage and ensuring the safety of transported goods.
Straddle
A straddle is an options strategy involving the purchase of both a put and a call option on the same asset, with the same strike price and expiration date. This strategy capitalizes on significant price movements in either direction.
Straight Bill of Lading
A non-negotiable bill of lading that specifies the carrier is to deliver the goods to a designated person at a specific location.
Straight Bond
A bond issued in the primary market that carries no equity or other incentive to attract the investor; its only reward is an annual or biannual interest coupon together with a promise to repay the capital at par on the redemption date.
Straight Debt
Straight debt is a type of debt instrument that has specific characteristics including fixed repayment terms and interest rates, with no contingencies based on the borrower's profits or convertibility into equity.
Straight Time
Straight time refers to the standard time or number of work hours established for a particular work period. An employee working straight time is not being paid overtime.
Straight-Line Method
A method of calculating the amount by which a fixed asset is to be depreciated in an accounting period, using a constant annual depreciation charge against profits year by year.
Straight-Line Method of Depreciation
The straight-line method of depreciation is a calculation method whereby an equal amount of an asset's cost is allocated as an expense for each year of the asset's useful life. This method is commonly used for accounting and tax purposes.
Straight-Line Production
Straight-line production is a traditional production-line method where all parts of the process are arranged sequentially on a straight production line, facilitating the efficient, step-by-step assembly of each piece.
Straphanger
A straphanger refers to a bus or rail commuter, particularly one who stands up while traveling, often holding onto bars or handles for support. The term originates from early subways where leather straps were used for passengers to grip.
Strategic Alliance
A strategic alliance is a long-term partnership between two or more organizations that collaborate to achieve mutual benefits and gain a competitive advantage.
Strategic Financial Management
Strategic Financial Management is an approach that integrates financial techniques with strategic decision-making to optimize long-term business performance.
Strategic Investment Appraisal
An evaluation of an investment decision based on broader criteria than pure financial metrics, considering long-term strategic benefits and intangible factors, particularly relevant for advanced manufacturing technology decisions.
Strategic Management Accounting
Strategic management accounting is a management accounting system focused on long-term strategic decision-making, providing vital insights for pricing strategies and capacity expansion.
Strategic Misrepresentation
In planning and budgeting, strategic misrepresentation involves knowingly understating costs and overstating benefits to secure project approval. Distinct from optimism bias, it is a deliberate policy often justified as part of the negotiation process.
Strategic Planning
Strategic Planning involves the management act of determining a firm's future environment and response to organizational challenges. It is crucial in making decisions that determine the direction of a firm.
Strategy
A strategy in a business context refers to a comprehensive plan designed to achieve long-term goals and objectives. It involves the allocation of resources and the implementation of actions to gain a competitive advantage.
Stratified Random Sampling
Stratified Random Sampling is a method used to divide a population into distinct subgroups or strata, which are independently sampled to achieve more precise estimates.
Straw Boss
A straw boss is an under-foreman or group leader who holds delegated authority to supervise others, often without a formal title or permanent status. Their supervisory roles are usually secondary to their production responsibilities.
Straw Man
An individual who purchases property for the purpose of concealing the identity of the eventual purchaser, often used in real estate transactions.
Streaming
Streaming is the technology for delivering multimedia, such as audio and video, over the Internet in real time, allowing users to start playing content without downloading the entire file.
Street
The term 'Street' is shorthand for Wall Street and broadly refers to the financial community in New York City and elsewhere.
Street Name
Street name refers to the practice of holding securities in the name of a broker or another nominee instead of the customer's own name. This facilitates easier and faster transfer of shares.
Street Price
Street price refers to the average or usual price charged for a product, particularly when it is rarely sold at the manufacturer's suggested retail price (MSRP). It frequently appears in consumer electronics reviews, especially for products like personal computers and peripherals.
Street Smarts
Intuitive intelligence or reasoning power not gained by formal education. Street smarts refer to the practical knowledge and capability to handle challenges and navigate complex situations often derived from real-life experiences and interactions.
Stress Test
A comprehensive evaluation imposed by the Obama administration in 2009 on certain large banks to assess their ability to withstand a major economic downturn without needing additional capital infusions.
Stress Testing
Stress testing is a method used in risk analysis that employs simulations to estimate the impact of worst-case scenarios. It is widely used by regulators, rating agencies, and financial institutions.
Stretch IRA
A Stretch IRA is an Individual Retirement Account (IRA) structured to extend the period of tax-deferred earnings beyond the lifetime of the original account holder, potentially benefiting multiple generations.
Stretchout
Stretchout refers to two distinct concepts: accelerating the work pace without additional compensation for workers and extending the time needed to pay for a purchase.
Strict Product Liability
Strict product liability refers to the legal responsibility of all parties involved in the manufacture, distribution, and sale of a product for any damage it causes, regardless of fault or intention.
Strike
A strike is an organized work stoppage by labor intended to exert pressure on management for better contract terms, improved working conditions, settlement of grievances, or union recognition as a bargaining agent.
Strike Benefits
Union benefits provided to striking members, often in the form of flat payments or graduated payments according to family needs. Strike benefits may also include welfare payments in some states.
Strike Notice
A formal notification given by a union to an employer and relevant mediation agencies, signaling an imminent strike action due to unmet demands or rejected offers.
Strike Pay
Monies paid by the union to striking members to help compensate for lost income as a result of the strike.
Strike Price
The strike price, also known as the exercise price, is the predetermined price at which the owner of an option can buy or sell the underlying asset before or at the expiration date.
Strike Vote
A strike vote is a vote cast by members of a union to authorize a strike against an organization. A clear majority is required for the vote to be effective, but the union leadership decides the timing and occurrence of the actual strike vote.
Strikebreakers
Strikebreakers, also known as scabs, are management-hired replacements for striking employees. They must cross a picket line and are typically bitterly resented by striking employees.
Strip Development
Strip development is a form of commercial land use where each establishment has direct access to a major thoroughfare. It is typically associated with the intensive use of signs to attract passersby.
Stripped Coupon
A stripped coupon refers to a small minimum trading unit of a larger security, where the principal amount and the interest payments have been separated and sold as individual zero-coupon securities.
STRIPS
STRIPS (Separate Trading of Registered Interest and Principal of Securities) are zero-coupon bonds created by separating the interest and principal components of a bond or note and selling them individually.
Structural Capital
Structural capital is one of the three primary components of intellectual capital. It includes the processes, databases, patents, and other organizational resources that support the operations of a business.
Structural Unemployment
Structural unemployment is a form of unemployment resulting from industrial reorganization, typically due to technological advancements, rather than fluctuations in supply or demand.
Structure
In the context of real estate and construction, a structure refers to any built improvement made on a site. These include buildings, fencing and enclosures, garages, gazebos, greenhouses, kiosks, sheds, and utility buildings.
Structured Finance
Structured finance refers to the creation of complex debt instruments through methods such as securitization or the incorporation of derivatives to existing instruments. It involves asset pooling, tranching of liabilities, and the creation of special purpose vehicles to mitigate risk.
Structured Investment Vehicle (SIV)
A type of arbitrage fund that finances its operations through the sale of asset-backed commercial paper and medium-term notes, investing primarily in asset-backed securities.
Structuring a Deposit
Structuring a deposit involves breaking down large financial transactions into smaller ones to avoid triggering scrutiny from financial institutions or authorities.
Student (Tax Term)
For tax purposes, a student is defined as an individual who, during at least five calendar months of the tax year, is a full-time student at a qualified educational institution or is pursuing a full-time course of institutional on-farm training.
Sub-Marginal
In economics and business, submarginal entities are unable to maintain the minimum profit, production level, and so on to remain permanently in existence.
Sub-optimize
Sub-optimization refers to the process of utilizing resources or strategies to less than their maximum potential, which results in achieving less than the optimal output or outcome.
Sub-subsidiary
A sub-subsidiary refers to a subsidiary undertaking of a company that is itself a subsidiary of another parent company.
Subchapter C
Subchapter C refers to the portion of the Internal Revenue Code that covers corporate taxation, outlining the rules and regulations for how corporations are taxed in the United States.
Subchapter J
Subchapter J of the Internal Revenue Code concerns the taxation provisions related to estates, trusts, beneficiaries, and decedents. It outlines the rules and regulations for income distribution, fiduciary responsibilities, and tax computation for these entities.
Subchapter S Corporation
A Subchapter S Corporation, commonly referred to as an S Corporation, is a special type of corporate structure recognized under Subchapter S of the Internal Revenue Code. It allows corporations to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.