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FINANCIAL DICTIONARY & GLOSSARY: SH - STA
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share premium (GB) or paid-in surplus (US) money realized by selling shares at above their par or nominal value.

shock - an unexpected event that has economic consequences.

short position - selling options or other financial instruments, including those one does not actually possess, expecting to buy them later at a lower price to cover the sale.

short run - the short period during which supply and demand are relatively fixed.

short-term financing - involves debts which mature within a year.

sleeping partner - one who invests money in a partnership but who takes no part in managing it.

slowdown - another word for the beginning of a recession, a downswing of the business cycle, a contraction of the economy.

slump - another word for a recession, a decrease in demand, output, etc.

socialism - economic theory or system in which production should be for the public good rather than private profit.

sole trader - an individual proprietor, the simplest form of business, e.g. a shop or store owned and run by a single person.

solvency - having sufficient cash when liabilities become due.

source and application of funds - see funds flow statement.

special drawing rights (SDRS) - interest-paying loans from the IMF, made up of a "basket of currencies".

speculation - dealing in a commodity or financial asset in the hope of making a profit on changes in market values.

spillovers - externalities, especially those resulting from public expenditure.

spot markets - places where commodities, currencies and financial instruments are traded for immediate delivery.

spread or margin - the interest rate differential between deposits and loans.

squeeze - an attempt to limit (but not totally freeze) increases in pay, profits, credit, etc.

stabilize - to attempt to keep something at the same level, to avoid fluctuations.

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