Common Stock Trading Acronyms & Definitions

[DogDayTrader]

At the recommendation of our very own Slow Eddie, I have compiled this list of common acronyms/definitions used in the world of stock trading. This is by no means an all inclusive list, simply acronyms and or definitions to terms that one is most likely to encounter on this forum. If you have any additions and or suggestions please do not hesitate to PM (private message) me and I will add them.


AH – After Hours, the hours of trading after the market closes. In U.S. markets, from 4:00pm - 6:30pm.
AMEX - American Stock Exchange
ANDA – Abbreviated New Drug Application
ASCO – American Society of Clinical Oncology
ASK – The price one is willing to sell a security at
BID – The price one is willing to pay for a security
CALL – In options, an option contract to buy at a specified price
CBOE – Chicago Board Options Exchange
CBOT – Chicago Board Of Trade
CRL - Complete Response Letter, rejection letter from the FDA
DJIA – Dow-Jones Industrial Average
FINRA – Financial Industry Regulatory Authority
GAP – A dramatic jump in a securities price, either up or down; usually from previous day’s close
IND – Investigational new drug
IPO – Initial Public Offering
LBO – leveraged Buy Out
LIBOR – London Interbank Offered Rate
LII or L2 – Level 2 Quotes
M&A – Mergers and Acquisitions
MM – Market Maker, the person whose job it is to post the bid and ask prices for a security
MOMO - Momentum, in stock trading refers to type of trade/play
NASD – National Association of Securities Dealers
NASDAQ – National Association of Securities Dealers Automated Quotation
NDA – New Drug Application
NYMEX – New York Mercantile Exchange
NYSE – New York Stock Exchange
PDUFA – Prescription Drug User Fee Act
PM – Pre-Market, the hours of trading before the market open. In U.S. markets, from 8:00am - 9:30am.
PMA – Pre-Market Approval
PUT – In options, an option contract to sell at a specified price
S&P – Standards and Poor’s
SEC – Securities and Exchange Commission
SIZE – The number of shares available at the offered price
SL – Stop Loss
SPA - Stock Purchase Agreement
SPECIALIST – What the MM is referred to on the NYSE, see MM
SPREAD – The difference between the bid and ask price
T&S – Time and Sales
THE AX – The MM who sets the price on a particular security
TS – Trailing Stop