Common Stocks

Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company’s success throughdividends and/or capital appreciation. In the event of liquidation, common shareholders have rights to a company’s assets only afterbondholders, other debt holders, and preferred shareholdershave been satisfied. Typically, common shareholders receiveone vote per share to elect the company’s board of directors(although the number of votes is not always directlyproportional to the number of shares owned). The board ofdirectors is the group of individuals that represents theowners of the corporation and oversees major decisions for the company. Common shareholders also receive voting rights regarding other company matters such as stock splitsand company objectives. In addition to voting rights, common shareholders sometimes enjoy what are called “preemptive rights”. Preemptive rights allow common shareholders>to maintain their proportional ownership in the company in the event that the company issues anotheroffering of stock. This means that common shareholders with preemptive rights have the right but not the obligationto purchase as many new shares of the stock as it wouldtake to maintain their proportional ownership in the company. also called junior equity or common stock.

You’ve heard about them in the news, you’ve heard they’re easy to trade, but what exactly are index products?

First, let’s define an index. Simply put, an index represents a “basket” or portfolio of stocks or commodities, grouped in a particular way (e.g., the S&P 500 Index is made up of large-capitalization stocks; the Russell 2000® Index is based on small-capitalization stocks). How a particular stock or commodity index tracks the market depends on its composition – the stocks or commodities included in the index, the percentage weight of each component, and the method of calculating each index. The index comprising these stocks or commodities is typically called the “underlying” or “cash.”

Index futures and options closely follow the price movement of these underlying indexes. Index futures are a type of forward contract, which means they are agreements to buy or sell their underlying product at a specific price on a specific date in the future.

For Example:

E-mini S&P 500 and E-mini Nasdaq-100 stock index futures are electronically traded, smaller versions of the stock index futures contracts used by the big financial institutions. (The “E” stands for electronic, and the “mini” refers to the smaller size of these investment tools.) At one-fifth the size of their institutional counterparts (also traded at CME), they can be easily used by individual investors. They provide a highly liquid way to trade stock indexes.

From a practical standpoint, they trade similarly to stocks. You can go long (buy) and then close out your trade by selling. It’s also just as easy for an individual investor to sell short as it is to buy an E-mini stock index contract – an advantage over trading stocks. As futures contracts on stock indexes, these E-minis trade at a price that is closely related to the underlying stock market index on a day-to-day basis. Like other futures, these products are a type of forward contract. This means they are agreements to buy or sell their underlying product at a specific price on a specific date in the future.

When you trade these products, you are trading on the future direction of the underlying stock indexes. E-mini stock index prices fluctuate as the stock markets move – almost constantly. As a result, these contracts offer virtually endless trading opportunities. Similar to the stock market, you execute these trades via a registered broker over the phone or with electronic order management software on your PC.

You’ve heard about them in the news, you’ve heard they’re easy to trade, but what exactly are index products?

First, let’s define an index. Simply put, an index represents a “basket” or portfolio of stocks or commodities, grouped in a particular way (e.g., the S&P 500 Index is made up of large-capitalization stocks; the Russell 2000® Index is based on small-capitalization stocks). How a particular stock or commodity index tracks the market depends on its composition – the stocks or commodities included in the index, the percentage weight of each component, and the method of calculating each index. The index comprising these stocks or commodities is typically called the “underlying” or “cash.”

Index futures and options closely follow the price movement of these underlying indexes. Index futures are a type of forward contract, which means they are agreements to buy or sell their underlying product at a specific price on a specific date in the future.

For Example:

E-mini S&P 500 and E-mini Nasdaq-100 stock index futures are electronically traded, smaller versions of the stock index futures contracts used by the big financial institutions. (The “E” stands for electronic, and the “mini” refers to the smaller size of these investment tools.) At one-fifth the size of their institutional counterparts (also traded at CME), they can be easily used by individual investors. They provide a highly liquid way to trade stock indexes.

From a practical standpoint, they trade similarly to stocks. You can go long (buy) and then close out your trade by selling. It’s also just as easy for an individual investor to sell short as it is to buy an E-mini stock index contract – an advantage over trading stocks. As futures contracts on stock indexes, these E-minis trade at a price that is closely related to the underlying stock market index on a day-to-day basis. Like other futures, these products are a type of forward contract. This means they are agreements to buy or sell their underlying product at a specific price on a specific date in the future.

When you trade these products, you are trading on the future direction of the underlying stock indexes. E-mini stock index prices fluctuate as the stock markets move – almost constantly. As a result, these contracts offer virtually endless trading opportunities. Similar to the stock market, you execute these trades via a registered broker over the phone or with electronic order management software on your PC.

Soybean Futures

Contract Size    5,000 bushels (~136 metric tons)

Deliverable Grade    #2 Yellow at contract price, #1 Yellow at a 6 cent/bushel premium, #3 Yellow at a 6 cent/bushel discount

Pricing Unit    Cents per bushel
Tick Size (minimum fluctuation)
1/4 cent per bushel ($12.50 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U) & November (X)

Trading Hours    CME Globex (Electronic Platform)6:00 pm – 7:15 am and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am – 1:15 pm Central Time, Monday – Friday

Daily Price Limit    $0.70 per bushel expandable to $1.05 and then to $1.60 when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.

Last Delivery Date    Second business day following the last trading day of the delivery month.

Product Ticker Symbols    CME GlobexZS

Soybean Meal Futures

Contract Size    100 Short Tons (~ 91 metric tons)

Deliverable Grade    48% Protein Soybean Meal, meeting the requirements listed in the CBOT Rules and Regulations

Pricing Unit    Dollars and Cents per short ton

Tick Size (minimum fluctuation)
10 cents per short ton ($10.00 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)

Trading Hours    CME Globex (Electronic Platform)6:00 pm  – 7:15 am and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am  – 1:15 pm Central Time, Monday – Friday

Daily Price Limit    $20 per short ton expandable to $30 and then to $45 when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.
Last Delivery Date    Second business day following the last trading day of the delivery month.

Product Ticker Symbols    CME GlobexZM

Soybean Oil Futures

Contract Size    60,000 pounds (lbs) (~ 27 metric tons)

Deliverable Grade    Crude soybean oil meeting exchange-approved grades and standards-see exchange Rules and Regulations for exact specifications.

Pricing Unit    Cents per pound

Tick Size (minimum fluctuation)
1/100 of a cent ($0.0001) per pound ($6.00 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)

Trading Hours    CME Globex (Electronic Platform)6:00 am – 7:15 pm and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am – 1:15 pm, Central Time, Monday – Friday

Daily Price Limit    2.5 cents per pound expandable to 3.5 cents per pound and then to 5.5 cents per pound when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.

Last Delivery Date    Seventh business day following the last trading day.

Product Ticker Symbols    CME GlobexZL

Soybean Futures

Contract Size    5,000 bushels (~136 metric tons)

Deliverable Grade    #2 Yellow at contract price, #1 Yellow at a 6 cent/bushel premium, #3 Yellow at a 6 cent/bushel discount

Pricing Unit    Cents per bushel
Tick Size (minimum fluctuation)
1/4 cent per bushel ($12.50 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U) & November (X)

Trading Hours    CME Globex (Electronic Platform)6:00 pm – 7:15 am and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am – 1:15 pm Central Time, Monday – Friday

Daily Price Limit    $0.70 per bushel expandable to $1.05 and then to $1.60 when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.

Last Delivery Date    Second business day following the last trading day of the delivery month.

Product Ticker Symbols    CME GlobexZS

Soybean Meal Futures

Contract Size    100 Short Tons (~ 91 metric tons)

Deliverable Grade    48% Protein Soybean Meal, meeting the requirements listed in the CBOT Rules and Regulations

Pricing Unit    Dollars and Cents per short ton

Tick Size (minimum fluctuation)
10 cents per short ton ($10.00 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)

Trading Hours    CME Globex (Electronic Platform)6:00 pm  – 7:15 am and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am  – 1:15 pm Central Time, Monday – Friday

Daily Price Limit    $20 per short ton expandable to $30 and then to $45 when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.
Last Delivery Date    Second business day following the last trading day of the delivery month.

Product Ticker Symbols    CME GlobexZM

Soybean Oil Futures

Contract Size    60,000 pounds (lbs) (~ 27 metric tons)

Deliverable Grade    Crude soybean oil meeting exchange-approved grades and standards-see exchange Rules and Regulations for exact specifications.

Pricing Unit    Cents per pound

Tick Size (minimum fluctuation)
1/100 of a cent ($0.0001) per pound ($6.00 per contract)

Contract Months/Symbols    January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)

Trading Hours    CME Globex (Electronic Platform)6:00 am – 7:15 pm and 9:30 am – 1:15 pm Central Time, Sunday – FridayOpen Outcry (Trading Floor)9:30 am – 1:15 pm, Central Time, Monday – Friday

Daily Price Limit    2.5 cents per pound expandable to 3.5 cents per pound and then to 5.5 cents per pound when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Settlement Procedure    Physical Delivery

Last Trade Date    The business day prior to the 15th calendar day of the contract month.

Last Delivery Date    Seventh business day following the last trading day.

Product Ticker Symbols    CME GlobexZL