1: Deposit Account
2: Documents against Acceptance
Daily Bond Buyer
A daily municipal industry newspaper that contains news and announcements. The paper basically concentrates on new issues and publishes a variety of municipal industry statistics. These statistics include: Eleven Bond Index, Revenue Bond Index, Twenty Bond Index and Visible Supply.
Daily Trading Limit
The daily maximum amount that many options and commodities markets are allowed to rise or fall. When a market reaches the upper limit and remains there all day, it is said to be having an up-limit day. Conversely, when a market reaches the lower limit and remains there all day, it is said to be having a down-limit day.
The date from which interest begins accruing on new municipal bonds and other debt instruments. The buyer makes a payment to the issuer for the interest accrued from the dated date to the issue's settlement date. On the bond's first interest payment the buyer is reimbursed.
Security buy or sell orders that expire at the end of the trading day on which they were entered unless already executed or canceled during the day.
The purchase and sale of a position in an account during the same trading day. A day trade may also be a short sale followed by a short cover (buy).
A bond that is a "deep discount issue." The abbreviation "DC" is used in bond listings of newspapers.
An individual or firm in the securities business who acts as a principal rather than as an agent in a specific transaction. Principles buy and sell securities for their own account and risk.
A dealer's profit or loss is derived from the difference between the price he/she pays for the security and the price he/she receives when selling the security to a customer.
Because most individuals and firms act as both brokers and dealers, the term broker-dealer is commonly used.
A company's stock that rises or falls due to takeover rumors.
An unsecured (without collateral) bond backed only by the integrity of the issuer (borrower). The parameters of the bond are set forth in an agreement called an indenture.
A stock issued under an agreement that provides for fixed payments at scheduled intervals. A debenture stock is more similar to a preferred stock than a debenture. In the case of a company's liquidation, it is treated as an equity. Investors will not receive payment until all debt is paid.
Money owed to a broker from the purchase of stock or bonds in a customer's margin account. This money is a loan extended by the broker to the margin customer and the customer pays interest on the debit balance in the account.
An option spread in which the premium of the bought option is greater than the premium of the one sold.
1: Common name for bonds and other forms of paper evidencing the amount owed and whether it is payable on a specific date or on demand.
2: One party's legal obligation to pay another party in accordance with an expressed or implied agreement. The debt may or may not be secured.
A written agreement denoting that the issuer promises to reimburse a debt. Examples are Treasury Bills, Notes and Bonds, Banker's Acceptances, Commercial Paper and Certificate of Deposits.
The maximum amount of debt that a municipality is permitted to incur--also known as "debt ceiling."
A business or individual that borrowed money that needs to be reimbursed to the creditor.
The repayment of specific debt. There are two methods used to retire debt--sinking fund and serial. Sinking fund and serial bonds are not types of bonds, just methods of retiring them. The sinking fund method, in which money is set aside each year to retire debt, is most commonly used for corporate debt. Conversely, the serial method is more commonly used in the debt retirement of municipal bonds. When bonds are issued in serial form, parts of the issue, known as a "series," are retired in various time schedules, usually semiannually or annually.
Securities, such as Treasury Bills and Commercial Paper, that represent money borrowed by the issuer. This money must be repaid by the maturity date at a specified interest rate unless it was an original issue discount purchase.
The yearly amount needed to make interest and current maturities of principal payments on a bond issue.
1: The ratio of a company's securities with fixed charges to the company's common stock equity. To calculate, divide the total amount of preferred stock and bonds by the amount of common stock equity.
2: In the case of liquidation, the ratio indicates the extent owner's equity can cover creditors' claims. It is calculated by dividing total liabilities by total shareholders' equity.
3: A ratio that is used to measure leverage. Leverage is the use of borrowed money to increase the return on owners' equity. To calculate, divide the total amount of long term debt by the total amount of shareholders' equity.
A specified date that the board of directors of a corporation declares and authorizes a dividend payment. At this time, the dividend becomes a corporate obligation.
An expense that can be subtracted from an individual's adjusted gross income to obtain their taxable income. The type of expense deductions allowed is determined by the Internal Revenue Service (IRS). Examples include state and local taxes, charitable contributions and mortgage interest paid.
Deep Discount Bond
A bond that trades substantially below its face value--usually more than 20% from its face value. The term is usually used in reference to zero coupon bonds. Although original issue discount bonds and deep discount bonds are similar, deep discount bonds are issued at a par value of $1,000. The value of a deep discount bond generally increases faster as interest rates fall and declines faster as rates rise.
Deep In The Money
A call option whose exercise (strike) price is considerably below the underlying security's current market price--that is, the strike price is 5 or more points below the underlying security's current market price. In regard to a put option, the exercise price is well above the underlying security's current market price--that is, the strike price is 5 or more points above the underlying security's current market price. When buying a deep-in-the-money call option, the premium is high because the holder has the right to purchase the stock at an exercise price that is substantially below the underlying security's current market price.
Deep Out Of The Money
A call option whose exercise (strike) price is considerably above the underlying security's current market price--that is, the strike price is 5 or more points above the underlying security's current market price. In regard to a put option, the exercise price is well below the underlying security's current market price--that is, the strike price is 5 or more points below the underlying security's current market price. When buying a deep-out-of-the-money option, the premium is small because the option may never be profitable.
The failure of a debtor to make timely payments of principal and/or interest. If the debtor defaults, the bondholders may make claims against the issuer's assets to get back their principal.
A process whereby a corporation gets rid of old, low-rate debt without paying it back before maturity--another term for "advance refunded bonds." The corporation uses newly purchased bonds that have a lower face value and pay higher interest or have a higher market value. In doing this, the corporation's balance sheet becomes more debt free and earnings will increase by the amount that the old debt's face value exceeds the cost of the new debt. Another type of defeasance occurs when a corporation solicits a brokerage firm to buy the outstanding bonds of the old corporate debt issue. The brokerage firm will then exchange the old debt issue for a new corporate stock issue equal to the market value of the old debt. The broker will then sell the stock at a profit.
Securities that are steadier than the average stock or bond and provide the investor a safe return on their money. Because of the corporation's business (e.g. utility and food industries), its securities are relatively resistant to general economic changes. Thus, when the stock market is weak, defensive securities are apt to decline less than the overall market.
Deferral of Taxes
The deferment of making tax payments from this year to a later year. For example, money in an Individual Retirement Account (IRA) grows tax deferred until the money is withdrawn from the account.
An account, such as an Individual Retirement Account or Profit Sharing Plan, that delays taxes until a later date.
An annuity in which its contract provides that payments to the annuitant are delayed until certain thresholds have been attained (e.g., when the annuitant attains a certain age)--also called a "deferred payment annuity."
Deferred Interest Bond
A bond, such as a zero coupon bond, that pays interest and repays principal in one lump sum at maturity.
A written notice sent by the Securities and Exchange Commission (SEC) to the issuer of an anticipated new issue. The notice states that there are omissions of material fact in the registration statement and/or that the preliminary prospectus needs revision. If immediate action is not taken by the issuer, the registration period may need to be extended.
The amount by which expenditures exceed the amount budgeted or the amount by which liabilities exceed income and assets. Deficits can be corrected by borrowing money or by selling assets.
The borrowing of money by government agencies to procure revenue shortages. Deficit financing may stimulate the economy for a while, but usually ends up being an economic hindrance by pushing up interest rates.
Deficit Net Worth
The amount that liabilities exceed assets and capital stock--also referred to as "negative net worth."
A shortage that is financed by government borrowing. This shortage occurs when the amount of government expenditures exceeds government revenues.
Defined Benefit Pension Plan
A retirement plan that stipulates that each participant will receive a set payment after a predetermined number of years of service. It does not pay taxes on investments within the plan. Contributions to the plan may be by employer only, employee only or both.
A persistent price decline of goods and services--the inverse to inflation. Deflation usually occurs during a recession and is characterized by supply exceeding demand, and while there is increased buying power, the amount of currency in circulation is greatly reduced. Marked deflation generally affects production and employment negatively. Deflation should not be confused with disinflation, which is a result of a slow down in the rate that prices increase.
Statistical factor used to adjust the difference between real value and inflation affected value.
Delivery of securities later than the settlement date of the sell transaction. Delayed delivery is acceptable only when there is an agreed upon contract by both parties to the trade--known as a "seller's option."
The postponement of the start of trading in a stock beyond the normal opening of a day's trading because exchange officials judge that market conditions justify such a delay. Such market conditions may be caused by a great influx (or an extreme imbalance) in buy and sell orders, or pending corporate news that requires time for dissemination.
Elimination of a corporation's security from an exchange because the security no longer meets specific financial ratios, sales levels, or other qualifications.
The physical exchange of money and securities on the brokerage transaction's settlement date. Industry standards stipulate what is an acceptable condition for the securities being delivered--otherwise known as being in "good deliverable form."
Currently, it is the fifth business day following a "regular way" transaction on the New York Stock Exchange in which money and securities need to be exchanged. However, on June 1, 1995, new industry regulations will be in effect. The regulation change stipulates that the delivery date for regular way transactions--for most securities--will occur on the third business day following the transaction. Moreover, in regard to other types of securities, the term regular way delivery does not necessarily mean three business days following the transaction. Government securities, for instance, have a regular way delivery on the next business day following the transaction.
Notification from the seller to the buyer of the date when the actual commodity in a futures contract will be delivered.
Delivery Versus Payment (DVP)
Securities industry procedure whereby the sold securities are delivered to the buyer's bank in exchange for payment. From the seller's perspective, it is called "receive versus payment." Institutional customers customarily use delivery versus payment to make settlement on transactions. It is also referred to as COD (cash on delivery) transactions.
A statistical measure of the relationship between an option contract's price movement to the price movement of the underlying futures contract or stock price. To illustrate, if the option's underlying stock increased by 2 points and the call option increased by 1 point, the call option would have a delta of .5. As an in-the-money option near expiration, it advances to a delta of 1.
A type of bank account whereby the account balance can be withdrawn by the depositor without prior notice to the bank (e.g. checking accounts). The balance can be withdrawn via check, automatic teller machine or by transfers to other accounts using a PC or telephone. The Federal Reserve uses demand deposits as a primary indicator as to when to implement monetary policy because they are the largest component of the money supply.
Price increases as a result of supply not meeting demand.
A provision within Regulation T of the Federal Reserve that allows margin deficiencies of $1000 or less. Brokers may not have to liquidate securities to correct the situation. However, a broker does have to obtain the funds within a reasonable period. This rule is in effect for cases in which the client may be unavailable because of vacations or some other extraordinary event.
Face value of securities, currency and coins.
An accounting practice that allows for charges against earnings based on the amount of assets taken out of reserves to reductions in taxable income. This practice is only available to companies that extract natural resources such as oil and gas.
1: Securities put into a customer's account at a financial institution (e.g., brokerage firm).
2: Cash, checks, or drafts credited to a customer's account at a financial institution (e.g., bank checking and saving accounts).
3: Money put down as an indication of good faith in contracts and vendors, such as utility and telephone companies, to protect the other party against nonpayment, property damage and contract defaults.
Depository Trust Company (DTC)
A central securities certificate repository that is a member of the Federal Reserve System and is industry-owned. The New York Stock Exchange is the majority owner. DTC members deliver securities to each other via computerized debit and credit entries. This reduces the need to actually move paper certificates.
A bookkeeping entry that does not require cash outlay nor funds to be earmarked. The entry is a charge against earnings to write off the cost of an asset over its assessed useful life over a set time period. It reduces taxable income but does not reduce cash. The most commonly used depreciation methods are Straight-line Depreciation and Accelerated Cost Recovery System (ACRS).
Economic situation characterized by rising unemployment, an excess of supply over demand, deflation, reduced purchasing power, contraction of general business activity and public fear.
Financial instrument whose price is based on an underlying security--for example, an option's value can be derived either from its underlying stock, stock index, or future (dependent upon the type of option).
Chart pattern where each new high price for a security is lower than the former high price. In other words, from the stock's high price, it falls and then rises. However, the price never reaches the stock's previous high price. If this pattern continues, technical analysts consider this type of trend to be bearish.
Designated Examining Authority (DEA)
A self-regulatory body that has surveillance responsibility for specific broker-dealers. As some firms have memberships on several exchanges, and in the NASD and MSRB, one regulator is designated to a firm.
An order given to a municipal syndicate that indicates which syndicate members should receive the sales credit.
Designated Order Turnaround (DOT)
Electronic system provided by the New York Stock Exchange (NYSE) and used by NYSE members to expedite execution of market orders for 1 to 2,099 shares. The system routes the orders directly from the member firm to the specialist. A similar system called "Super Dot" routes limit orders.
In relation to the currencies of other countries, the declining value of a particular country's currency. It can also be caused by another country's currency rising in value as compared to the currency value of a specific country.
An investment strategy that entails buying or selling of two different option positions of the same class (two call positions or two put positions in the same stock). Both the strike prices and the expiration dates of the options are different. For instance, a three month ABC call sold with a strike price of 30 and a two month call sold with a strike price of 25. Investors gain or lose as the difference in price narrows or widens.
he effect on book value per share and earnings per share if all stock options or warrants are exercised or all convertible securities are converted.
After a security's prolonged up-trend, a small drop in its price. Analysts frequently advise investors to buy on dips because it is seen as only a temporary price weakness.
Securities directly sold to one or more professional investors.
Money paid out to discharge a debt or an expense.
A pamphlet published by the Options Clearing Corporation (OCC) that outlines the risks and uses of options trading.
1: A bond that trades in the market at a price below its face or redemption value. A bond selling below par is said to be "selling at a discount."
2: Securities, such as treasury bills, that are issued for less than their face value and mature at face value. At maturity, the difference between the purchase price and the face value is the interest.
3: To evaluate a security's current price, all applicable news and information about the corporation are used.
4: Relationship between two countries' currencies. For example, the French Franc may sell at a discount to the German Mark.
Bond trading for less than its redemption value.
A brokerage firm that executes buy and sell orders at lower commission rates than those charged by a full service broker.
Discounted Cash Flow
Future value of anticipated cash receipts and expenditures on a specified date. It is computed using net present value (NPV) or internal rate of return (IRR) and is a consideration in analyses of capital and securities investments. The NPV method uses a discounted rate of interest based on the marginal cost of capital to future cash flows to bring them into to the present. The IRR formula finds an investment's average return for the life of the investment. It identifies the discount rate that matches the present value of future cash flows to the investment's cost.
Discounting the News
The act of bidding a stock's price up or down in the anticipation of news about the stock's corporate financial outlook. This process may occur regardless of whether the news is good or bad.
The rate of interest charged by a Federal Reserve Bank on a loan to a member bank, using government securities or eligible paper as collateral.
Federal Reserve location where banks can borrow money at the discount rate.
Yield on a security sold at a discount--most notably T-bills. To calculate the annual yield, divide the discount by the face amount and multiply that number by the approximate number of days in the year divided by the number of days to maturity.
A type of brokerage account whereby clients authorize their broker to buy and sell securities or commodities when the broker deems it is appropriate. The broker will decide when and which securities, the amount of shares, and price to be paid or received without the client's prior knowledge or consent. Some clients may set guidelines for the broker, such as limiting the type of securities in which to invest.
The amount of income leftover after essential commitments, such as housing and food, have been paid. Spending discretionary income can spur the economy. Thus, the amount of discretionary income can be a key economic indicator.
An order to buy or sell a security for a customer that lets the broker, who has limited power of attorney over the customer's account, decide when to execute the trade and at what price.
Mutual fund or unit trust where the management decides on the best way to invest the assets. The fund is not limited to a specific kind of security.
A process that commonly occurs during a recession whereby price increases slow down--as sales decrease, retailers may not be able to pass on higher prices to customers.
The withdrawal of money from low yielding financial accounts, such as saving accounts, and the reinvestment into higher yielding securities such as Treasury bills. Banks, in an effort to keep the money, may pay depositors higher rates. In order to afford the higher rate, banks will then charge their borrowers higher interest rates. This can possibly lead to tight money and reduced economic activity.
Capital investment shrinkage caused by a firm's failure to maintain or replace capital assets being used up or by the firm's sale of capital goods such as equipment.
Income that remains after tax payments. This money may be spent on essentials (e.g., food and shelter), nonessentials (e.g., dining in a restaurant) or it can be saved.
Price range in which a security trades for an extended time period. Distribution areas are a factor in a technical analysts' prediction of when a security may decline from that price range. To avoid pushing a security's price below its range, a seller will want to be mindful not to sell below it. Accumulation of shares in the range aids in the stability of the security's price.
Distributions 1: The payment, to investors, of realized capital gains on securities within the portfolio of a mutual fund or closed-end investment company.
2: Sale of a large block of securities over a period to avoid a decline in their prices. Technical analysts consider distribution patterns to predict when the security's price will fall.
District Business Conduct Committee (DBCC)
National Association of Securities Dealers (NASD) committee that has jurisdiction in handling complaints against, or violations by NASD members within its district.
Spreading risk by placing assets in different types of investments (i.e., mutual funds, stocks, bonds, etc.) and various companies in different industry groups (i.e., pharmaceutical, utility, airline, etc.).
Diversified Investment Company
Term used for either closed or open-ended mutual funds or unit trusts that invest in many different kinds of securities and companies. Under the Investment Company Act of 1940, an investment company, with respect to 75% of its portfolio, may not have more than 5% of its assets invested in the securities of any one issuer and may not own more than 10% of the voting shares of any one issuer.
Disposal of an investment by sale, liquidation or other means. This legal term is also used to describe a corporation's systematic distribution of large blocks of another company's stock which were being held as an investment.
A type of a new issue syndicate--also known as a "Western Account"--where all members are liable for selling a percentage of the issue commensurate to their participation. The member's liability ends once it has sold its percentage of the issue.
Distribution of a company's earnings to its shareholders, usually in the form of a quarterly check. The company's board of directors authorize and determine the amount of the dividend. Dividends are taxed as income in the year they are received by the shareholder. A mutual fund dividend is paid out of income and the shareholder's tax is dependent on whether the distributions originated from interest income, capital gains, or dividends received by the fund.
Investment strategy whereby the investor buys the stock roughly two weeks before it goes ex-dividend and then sells it about two weeks after it has gone ex-dividend in order to collect the dividend and make a small profit on the trade. On the stock's ex-dividend date, its price will drop by the amount of the dividend. The theory is that the stock's price will work its way back up to the price it was at before the ex-dividend date. This allows the investor to sell slightly above the purchase price. Thus, the investor is able to collect the dividend and realize a small capital gain in about four weeks. Also referred to as a "dividend rollover plan."
Dividend Discount Model
Mathematical model used to identify undervalued stocks. It determines the price that a stock should be selling at based on the discounted value of projected future dividend payments.
Dividend In Arrears
Cumulative preferred stock dividends that are due but have not been paid.
Dividend Payout Ratio
Percentage of earnings paid in cash to shareholders. It is calculated by dividing the dividends paid on common stock by the earnings per share. In general, a corporation with a higher payout ratio will be more mature. A company in a growth phase usually reinvests all earnings and pays little or no dividends.
A Standard & Poor's publication that gives data on corporate payment histories and policies.
Dividend Reinvestment Plan (DRIP)
A program in which a dividend paying company (especially mutual funds) will automatically reinvest an investor's dividend to purchase additional shares of the company's stock. The dividend is still taxable by the IRS. In participating in a DRIP, investors use dollar cost averaging to increase their amount of capital in the stock.
The amount of annual earnings needed to pay a preferred stock's contracted dividend.
The annual percentage of return that the dividend provides to the investor on either common or preferred stock-often referred to as just "yield." The yield is calculated by dividing the annual cash dividend per share by the stock's market price at the time of purchase.
Dollar amount of dividends that are obligated to be paid once a dividend is declared by the board of directors. The dollar amount is listed as a liability in the annual and quarterly reports.
1: Municipal revenue bonds that are quoted and traded at a dollar price rather than at a yield to maturity.
2: Bonds that are issued in the United States by foreign companies and denominated in US dollars.
3: Bonds that are issued outside the United States and denominated in US dollars.
Dollar Cost Averaging
An investment method that involves consistently buying at regular intervals equal dollar amounts of a security, rather than a certain number of shares, regardless of the price. As a result, more shares are bought when prices are low than at high prices. Thus, the average cost is less than the average of the prices paid. However, the method does not guarantee a profit. The investor only profits if the sale price exceeds the average cost per share.
A bond's price stated as a percentage of face value. For example, a dollar price of 95 represents 95% of face value or $950 per $1,000 face value.
Donoghue's Money Fund Average
An average of major money market fund yields that is issued weekly in many newspapers for 7 and 30-day yields. Donoghue also tracks the maturities of the securities in the portfolios. Portfolios with short maturities are an indication that fund managers have the opinion that interest rates are going to rise.
Do Not Reduce (DNR)
A designation used on an order (specifically--buy limit, sell stop and sell stop-limit orders) to specify that an order's limit price should not be reduced by the amount of the dividend. When the stock goes ex-dividend, its price is reduced by the amount of the cash dividend. DNRs only apply to cash dividends.
A municipal revenue bond that has two separate entities making a financial commitment. The project's revenues provide the initial security and the secondary guarantee is provided by the general obligation taxing powers of the issuer. To illustrate, a revenue bond would be double-barreled if a highway authority issues a bond that is secured by toll revenues and if the state also secures the bonds. Thus, if highway usage is low and toll revenues are insufficient to cover principal and interest payments, investors are safeguarded against default because of the state's guarantee.
Dow Jones Composite
Combination of the Dow Jones Industrial Average (DJIA), Dow Jones Transportation Average (DJTA) and the Dow Jones Utility Average (DJUA).
Dow Jones Industrial Average (DJIA)
Average of the prices of 30 well-known, predominantly blue-chip, industrial stocks. The following 30 stocks make up the DJIA as of February 1995: Allied Signal; Alcoa, American Express; A T & T; Bethlehem Steel; Boeing; Caterpillar; Chevron; Coca Cola; Disney; Dupont; Exxon; General Electric; General Motors; Goodyear; IBM; International Paper; Kodak; McDonalds; Merck; 3M; JP Morgan; Philip Morris; Proctor Gamble; Sears; Texaco; Union Carbide; United Tech; Westinghouse and Woolworth.
Dow Jones Transportation Average (DJTA)
Average of the prices of 20 representative transportation companies.
Dow Jones Utility Average (DJUA)
Average of the prices of 15 geographically representative gas and electric utility companies.
An assessment as to the extent that a security could decline in value--considering all possible factors that could affect the security's market price.
Also called "minus tick," the sale of a listed stock at a price that is less than the previous sale price. For example, if a stock traded at $12 a share, the next trade would be a downtick if it is at 11 7/8.
A decline in a stock market or economic cycle.
Market theory whereby a major stock market trend must be corroborated by a similar movement in the Dow Jones Industrial Average and the Dow Jones Transportation Average. A trend is confirmed only when both Dow Jones indexes obtain new highs or lows. If they do not, the market will return to its previous trading range. Believers of the Dow Theory frequently disagree on when a true trend is taking place.
A security that is listed on more than one exchange--either the New York Stock Exchange and a regional exchange or the American Stock Exchange and a regional exchange. However, a security may not be listed on both the New York and American stock exchanges. Being dual listed increases the liquidity of a security.
Dual Purpose Investment Company
An exchange listed closed-end investment company that issues two classes of shares--income and capital. The income (preferred) shareholders receive all the income (dividends and interest) from the portfolio, and the capital (common) shareholders receive all the capital gains. As dual purpose funds are not highly traded, many analysts do not follow them closely.
A written notification that either dividends, interest, or other distributions are owed by the seller to the buyer or vice versa. For example, a security is purchased prior to its ex-dividend date and the seller does not deliver the security until after the dividend's record date. The security is delivered with a due bill attached because the seller will receive the dividend in which he is not entitled. The seller's name was on the company books even though he no longer owned the security. The due-bill is a notification that the purchaser is entitled to receive the dividend. Conversely, if a security is purchased ex-dividend (without dividend) and the security is delivered before the record date, the buyer's name will be on the company books on the record date. The buyer will receive a dividend in which he is not entitled. The buyer signs a due bill stating that the dividend he receives is payable to the seller.
Event that occurs when a seller offers a large amount of stock for sale with no concern as to how it will affect the stock's price or the market.
Dun & Bradstreet (D & B)
Company that provides subscribers with a ratings directory and credit reports of corporations. It also publishes financial composite ratios and offers an accounts receivable collection service. Moody's Investor Service, which rates bonds and commercial paper, is a subsidiary of D & B.
Auction method used in which the security's price is gradually lowered until it meets an acceptable bid and is sold. The Treasury uses this auction system when selling new notes or bonds to determine the lowest bid price (stop-out price). The opposite is the "auction market" system used by major stock exchanges.
Dutch Auction Preferred Stock
Type of adjustable rate preferred stock whereby the dividend to be paid is determined in a Dutch Auction process that occurs every seven weeks. Shares are bought and sold at face values that range from $100,000 to $500,000 per share.