L.A. SPEAK

Bullish or bearish, the stock market has a language all its own. A selection:

back-end load n . the commission due a brokerage or a mutual fund upon the sale of a fund’s shares.

call n . an option to buy stock at a certain price within a specified period of time.

porcupine provision n . measure undertaken by a corporation to discourage takeovers. “A good porcupine provision is to issue more debt in order to make the company less attractive.” Syn . shark repellent, poison pill.

pot is clean all newly issued shares of a company’s stock have been sold. “The pot is clean for Widget & Co. Send no more orders.”

put n . an option to sell stock when it reaches a specific price; the opposite of a call.

red herring n . a legal document summarizing the financial status and economic intentions of a privately held corporation going public. “Enclosed please find the red herring for the investment we spoke of last week.”

straddle n. a put and a call on the same stock to ensure no money is lost. “I have a straddle on IBM that’s due in three weeks.”

tombstone n . a newspaper ad announcing that a private company has gone public. Also announces a public offering of securities. “Did you see the tombstone on the new issue by Widget & Co.?”

white knight n . a company that comes to the aid of a firm threatened by a hostile takeover. “We were speaking with our white knight about a porcupine provision.”