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Brokerage: Glossary E
Electronic Data Gathering, Analysis, & Retrieval (EDGAR): An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational mid-1995. Equity: When used in the context of a corporation, it refers to the ownership interest of common and preferred shareholders in a corporation. When used in the context of a brokerage account, it refers to the market value of securities (long market value minus short market value) minus any debit balance and plus any credit balance. See the explanation of margin for more complete information on using margin leverage in your investing. Exchange: Any organization, association or group of persons that maintains or provides a marketplace in which securities can be bought and sold. Exercise: The right of the buyer (holder) to buy the underlying security in the case of a call, or sell the security in the case of a put. Exercise Price: Also known as the strike price. The price that the owner (purchaser) of an option can buy (if calls are owned) or sell (if puts are owned) the underlying security by exercising his option. See the explanation of options trading for more complete information on options. Expiration Date: The date on which an option expires. If an option has not been exercised prior to expiration, it expires worthless and the buyer no longer has any rights. See the explanation of options trading for more complete information on options.
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