Glossary

Stock — a security paper conferring its holder a right to take part in the joint stock company management and for obtaining a part of profit in the form of dividends.

Boiler technologies - hard selling of security papers and strategies by broker to a client with the purpose of implementing the goals set by the bank management and investment company, often causing damage to the client’s interests. Strongly forbidden in the company.

Broker - an intermediary on the securities market implementing the function of buying-selling security papers on behalf of a client, at his expense, on behalf of a client and at the broker’s expense or on behalf of a broker at client’s expense.

Blue chips — shares of the most large and reliable companies paying off dividends for ordinary stocks annually.

Demo-account – educational brokerage account of a client with 300 000 rubles deposit through QUIK-Junior.

Deposit - money put into account for further operations.

Derivatives – secondary of security papers (futures, options etc.). In the Russian practice of stock exchange trading - futures and options are used for speculative trading on the spot market or for protecting from risk realization, such as sudden change of stock price (hedging). Simply stated, these instruments is a changes forecast. Russian derivatives trading is carried out on FORTS of the RTS stock exchange.

Long position - purchase of a security paper with the purpose of further selling at a higher price.

Short position - selling of a security paper borrowed from broker for further buying at lower price and debt return in the form of security paper. The income is made from difference between a high sell price and low buy price.

Mechanic Trading System (MTS) — computer program meant for full or partial automation trader’s trading procedures.

MICEX – the major stock exchange of Russia where you can trade with stocks of the Russian biggest stock companies.

Bond - security paper with low loss risk giving a small income, but exceeding the bank interest rate.

Option contract – contract giving a trader an opportunity to buy/sell a security paper in some period of time, in case he paid a deposit, at a price set in the contract or refuse from a deal.

Pyramid – system of constant advancement of population and companies funds involvement where the clients’ earnings are formed only at the cost of new investors assets. Worth mentioning that a lion’s share is settled down into the organizers’ pockets of this cheating system which stops its existence immediately in case of reduction of investors’ funds flow in it.

RTS — the Russian stock exchange running trades on the market of shares and derivative financial instruments.

Securities market – a general system of exchanging the capital for security papers with the purpose of profit deriving by means of different strategies or possessing an influence on companies’ management which issued the purchased securities.

Stop order - an order given to a broker to carry out a purchase or sale as soon as the price touches the needed level (stop price).

Trader — a physical or legal body trading on the stock exchange with his own or somebody’s capital.

Trend - a general market direction dominating over the prices changing of security papers.

Futures contract - contract of obligatory buying/selling a security in future at the price fixed in the contract.

Meta Stock – a huge facility for technical analysis (forecasting) of prices on a financial market.

QUIK – the most popular Russian program software allowing to trade with security papers on MICEX, RTS stock exchanges.

QUIK-Junior – QUIK program version for education trading. Distributed for free.

pocketQUIK – QUIK program version for communicator – cell phone with WINDOWS Mobile operation system.

FORTS RTS – the leading playground for futures and options trading in Russia and East Europe countries.