soorah (alt. sp. of sura) A Qur’anic chapter of which there are 114.speculation Using one’s money to try to create more wealth, typically by buying and selling securities on the stock market, although it can be through any means where risk is involved, for example, trading in currencies.
It can also be taken as meaning investing in securities without performing all the due research beforehand. Although speculation and investment are often used interchangeably, in financial terms they actually have subtly different meanings. Investment is a considered approach to security ownership, usually with the hope of a long-term return brought about by the company invested in using the resultant liquidity wisely and profitably. Speculation, on the other hand, is more often associated with buying securities and selling them, often quickly when their value goes up. There is no intention of investing in the company and the rise in value will in all likelihood be incidental to the purchase of securities. It carries more risk than investment, especially if the speculator does not have much ready money, as he might be forced to sell at a lower price to regain liquidity, whereas an investor, who has accepted that the money will be invested for the long term, is less likely to have an urgent need for the cash (and might benefit from the perks of security ownership, such as dividends).spread The difference between the price quoted for an immediate sale and that for an immediate purchase. Traders of securities need to make a profit, so will not buy them for less than or equal to the price they paid for them.
As a general rule, the more widely traded a security is (that is, the more competition there is), the smaller the spread is.standby letter of credit A good faith measure provided by one party to another in a contract whereby the bank promises to pay any monies owed should the paying party fail to pay for whatever reason. Such a letter will not be provided by a bank unless it is sure of the creditworthiness and trustworthiness of the client.
STO Science and Technology Office.stock The capital that is raised by a company by the issue of shares. Someone who owns stock has equity in the company. stockbroker A person or organisation who buys and sells securities through market makers, charging a commission for the service. A stockbroker is a regulated professional who can trade at a stock exchange, whereas a normal member of the public cannot. Anyone wishing to trade in stocks or shares must use a stockbroker as an agent.