Beta should be considered with R-squared (R²), a historical measurement which indicates how closely a fund’s past fluctuations have correlated with the fluctuations of its benchmark index, such as the S&P 500. For example, a fund with an R-squared of 0.80 indicates that 80% of the fund’s past fluctuations were explained by fluctuations in the benchmark index. Generally, the higher the R2, the more meaningful the beta figure.
On a multi-leg options tool, the difference in strike price between each leg of your multi-leg strategy. The range entered must match an eligible range. For example, if the option series trades in fives (5), then five (5), ten (10), or twenty (20) would be eligible, but 1 or 2.5 would not be eligible.
Rate Effective Date
The date at which the current coupon rate became effective.
Rate of Return
The amount an investment has gained. The rate is shown as a percentage of the security’s purchase price.
- the coupon rate for bonds
- the annual dividend divided by the purchase price for stocks
In the case of a Municipal bond where the repayment of principal or coupon interest is not guaranteed by a third-party, the ratings provided by Moody’s and S&P indicate each organization’s assessment of the relative credit risk of the issuer of a Municipal bond. For municipal bonds where the repayment of the principal and payment of coupon interest is guaranteed by a third-party (insured municipal bond), the rating reflected may be that of the Insurer. In the case of insured bonds, evaluating the rating of the insurer as well as the issuer provides a more complete assessment of the relative credit risk of that bond.
A ratio spread is the purchase of one or more options at one strike price, and the sale of a greater number of options at another strike price. Typically, traders use ratios of 1:2 or 1:3, but it is not uncommon for more sophisticated traders to use ratios of 4:5 or 1:8. The ratio spread can be used to target a range in which a stock might trade until expiration. Depending on market variables such as time until expiration, implied volatility, underlying price, and strike prices selected, a ratio spread can be a debit spread, a credit spread, or a zero cost spread.
The monetary value of a gain that results from a trade. The amount of the gain is the excess of proceeds from the sale over the cost basis (or adjusted cost basis).
In the Realized Gain/Loss Summary box, this figure is the total short-term or long-term realized gain for the selected year.
The cumulative amount of realized gains and losses resulting from the sale of securities.
The monetary value of a loss that results from a trade. The amount of the gain is the excess of cost basis (or adjusted cost basis) over the proceeds from the sale.
In the Realized Gain/Loss Summary box, this figure is the total short-term or long-term realized loss for the selected year.
The total percent that is being exchanged from an investment option in an annuity.
The total percentage reallocated must equal 100% after you have finished reallocating assets.
Refer to Reallocation below for additional information.
An exchange among investment options within an annuity that effects the distribution of investment options across the entire annuity.
The total percentage reallocated must equal 100% after you have finished reallocating assets.
Exchange by reallocation orders placed online using Fidelity.com are one-time orders. To reallocate in the future, place another Exchange by Reallocation order.
Real-time balances are available to all eligible margin customers. They are provided for informational / risk-management purposes and involved your account being marked to market. This means that real-time prices are obtained (where possible) for all the positions in the account and the account’s balances are then recalculated. Although the Real-Time balances calculation methodology is similar to the nightly balances calculation, real-time balances are only a “snapshot” of the account, taken at a particular point in time. In other words, real-time balances could be subject to wide swings from one revaluation to another, depending on market volatility and the Beta of the account.
This is a fair market value option for an order to exercise stock options. This value means that your stock option plan uses the market price for the stock at the time your exercise order executes to calculate the:
- Taxable gain
- Withholding taxes for non-qualified stock options
- Alternative minimum tax (AMT) for incentive stock options
Real-time quote refers to a quote that is current as of when the quote was displayed.
Recent Trade Information: Price, Quantity, Date/Time, Buy/Sell
Recent trade information contains actual trade data as reported to the NASD’s Trade Reporting and Compliance Engine (TRACE) for Corporate Bonds, and from the Municipal Securities Rulemaking Board (MSRB) for Municipal Bonds.
All broker/dealers who are NASD member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC approved set of rules. The MSRB, which is composed of members from the municipal securities dealer community and the public, sets standards for all municipal securities dealers. One of its services is the publication of transactions performed by its member dealers. Dealers must report all municipal securities transactions to the MSRB.
The prices quoted provide insight into recent historical transaction levels and are not necessarily reflective of current market value. The information is currently subject to a one business day delay in the case of Corporate bonds and a one week delay in the case of Municipal bonds.
Note that information indicating whether a trade was a buy or a sell is not currently available for Corporate Bond transactions reported from TRACE. In the case of Municipal Bonds, this data is available from the MSRB and we are able to report whether a trade was a customer-buy, a customer-sell, or a dealer-to-dealer transaction.
TRACE and MSRB are not responsible for any errors or omissions or for results obtained from the use of this information. Similarly, Fidelity provides this data for informational and/or education purposes only, has not been involved in the preparation of the content, does not alter or change content from these sources, and does not explicitly or implicitly endorse or approve its content.
- For Corporate Bonds, the recorded price of the most recent trade, its size, and the time of the trade is reported by Trade Reporting and Compliance Engine (“TRACE”). TRACE is the NASD developed platform which facilitates the mandatory reporting of over the counter secondary market transactions in eligible fixed income securities. All broker/dealers who are NASD member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC approved set of rules.
- For Municipal bonds, the recorded price of the most recent trade, its size and the time of the trade is reported by the Municipal Securities Rulemaking Board MSRB. The MSRB, which is composed of members from the municipal securities dealer community and the public, sets standards for all municipal securities dealers. One of its services is the publication of transactions performed by its member dealers. Dealers must report all municipal securities transactions to the MSRB. Currently, reporting must be done by the end of the day. After proposed rule G-14 becomes effective in mid-2004, trades must be reported within 15 minutes.
Recent Trades, TRACE, MSRB
For Corporate and Municipal bonds, you can view recent trade history of a particular issue. On the Bond Details – Analytics page, the most recent reported trade is shown. Click View Recent Trades to display up to the most recent 20 trades, including the time, price, and size/quantity of each trade.
Those trades listed occurred across the US bond markets—in other words, they are not only fidelity’s most recent trades (if at all), or exclusively the trades of Fidelity’s customers. By regulation, all dealers are required (the NASD for Corporate bonds and the MSRB for Municipal bonds) to report this information to them. This information is in the public domain, and Fidelity provides a real-time display of it as a service for its customers.
TRACE, the Trade Reporting and Compliance Engine, furnishes data to the NASD to create greater fixed income market transparency.
Record address refers to the address that is currently on file for you. You can update this information by selecting Customer Service > My Profile & Preferences > Address Information.
For variable annuity VIP sector funds, there is a 1% fee that is charged when units from one of these funds is transferred or withdrawn less than 60 days after you acquire the units. The fee is retained by the fund.
Another name for a preliminary prospectus used by a company’s underwriter in anticipation of an initial public offering. The name, Red Herring, is derived from the fact that a warning from the Securities and Exchange Commission is printed in red on the front cover.
This is the primary Electronic Communications Network (ECN) to which all orders placed during Fidelity’s Extended Hours Trading sessions, Premarket and After Hours sessions, are sent.
Reference CPI Settlement
The CPI Settlement is the relevant CPI applicable for the settlement date of a bond, assuming it was to be traded today. In the context of inflation-protected bonds Reference CPI is used to clarify which price index is referenced as part of the bond’s inflation adjustment. For example, for TIPS, the reference CPI is based on the non-seasonally adjusted U.S. City Average All Items Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics of the U.S. Department of Labor.
Registered Sale of Securities
Indicates the company issuing the securities has done so in a manner that meets the requirements of the Securities and Exchange Commission to offer and sell the shares to the general public.
Securities offered in a registered offering are typically traded in the open market and are not subject to the rules that govern restricted securities.
The registration for the account (e.g., individual, joint, etc.). There is one registration type per brokerage account or annuity contract. Some types of mutual fund accounts* have the same registration.
* Positions in some other types of mutual fund accounts can have different registrations.
This is a statement that is required by the Securities and Exchange Commission for any securities that are to be sold to the public. The statement provides information about the company issuing the securities (e.g., financial information, company operations and management, other information that should be disclosed to anyone who would purchase shares of the security, etc.).
The risk that prevailing interest rate fluctuations will adversely affect the price of a bond. Also known as market risk.
The number of options, rights, or awards you have declined for this grant.
Eligible accounts registered at your address and owned by you or your immediate family members can be included in your relationship household. The accounts included in your Fidelity statement will be considered the building block of your relationship household. To see exactly what accounts are included in your statement, refer to the most recent periodic statement you received from Fidelity.
- For customers with single statements:
If all of the accounts you and your family own are listed on a single Fidelity statement, then the statement reflects your total household relationship.
- For customers with multiple statements:
If you receive more than one statement from Fidelity, you may authorize Fidelity to consolidate accounts held by you or your family members into an aggregated relationship household. To be eligible, your family members must reside with you.
In order to establish a relationship household:
You are required to complete a Household Consolidation Form.
Accounts eligible to be included in a relationship household and consolidated onto a single reporting statement include:
- The Fidelity AccountSM:
– Individual brokerage accounts
– Joint brokerage accounts
– Custodial UGMA and UTMA brokerage accounts
- Retirement Brokerage Accounts:
– Traditional IRAs
– Roth IRAs
– Rollover IRAs
– SEP IRAs
– SIMPLE IRAs
- Mutual Fund Accounts
- GoalPlanner Accounts
- Employee Stock Option Plan
Ineligible accounts include:
- The Fidelity Account:
– Non-Trust Fiduciary
- College Investing Accounts:
– College Investment Trust (CIT) Accounts (DE, MA, NH)
– U-Plan Accounts
- Charitable Gift Accounts
- Charitable Advisors Accounts
- Fidelity Advisor Accounts
- 401(k) and 403(b) Accounts (FIRSCO, FITSCO)
- Beneficiary and Transfer on Death Accounts
- Fidelity Life Insurance and Annuity Accounts
A ratio of a portfolio’s standard deviation to the standard deviation of a benchmark index. See Volatility Measures.