Stock: A share of a company's stock translates into ownership of part the company.

Blue Chip Stock: A stock with solid value, good security, and a record of dividend payments or other desirable investment characteristics. Many times they have a record of consistent dividend payments, receive extensive media coverage and offer a host of other benefic ial investment attributes. On the downside, blue chip stocks tend to be quite expensive and often have little room for growth.

High-tech Stock: Refers to the stock of companies involved in high-technology industries, such as computers, biotechnology, robotics, electronics, and semiconductors.

Synthetic Stock: An option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is synthetic short stock.

Synthetic Short Stock: A short call position combined with a long put of the same series.

Synthetic Long Stock: A long call position combined with a short put of the same series.

Stock Split: An increase in the number of outstanding shares by a corporation, through the issuance of a set number of shares to a shareholder for a set number of shares that the shareholder already owns. For example, a corporation might declare a '2-for-1 stock split.' This means that for every share of stock an investor owns, he/she will be given another, thus owning 2 shares instead of 1. There will be a corresponding reduction in equity value per share. In this case, the new shares (post-split) will be worth one-half their previous value but the investor will own twice as many shares.

Stock Exchange or Stock Market: An organized marketplace where buyers and sellers are brought together to buy and sell stocks.

Stock Dividend: A dividend paid in shares of stock rather than cash.

Stock Dividend: A dividend paid in shares of stock rather than cash.

Short Stock Position: A strategy that profits from a stock price decline. It is initiated by borrowing stock from a broker-dealer and selling it in the open market. This strategy is closed (covered) at a later date by buying back the stock and returning it to the lending broker-dealer.

Optionable stock: A stock on which listed options are traded.

NYSE: New York Stock Exchange.

Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Married Put and Stock: The simultaneous purchase of stock and the corresponding number of put options. This is a limited risk strategy during the life of the puts because the stock can be sold at the strike price of the puts.

Long Stock position: A position in which an investor has purchased and owns stock.