After-Tax Return- The rate of return an investor will receive after adjusting for inflation.
All-or-Nothing Order- An order which must be executed in its entirety or not at all.
Amex or American Stock Exchange- The second largest U.S.( after the NYSE),
occasionally abbreviated as AMEX; listed firms tend to be medium-sized compared with the
larger NYSE issues and the typically smaller OTC issues.
Annuity- An asset that usually promises to pay a fixed amount periodically for a
predetermined period of time.
Ask- The lowest price at which a security is currently offered for sale;may come from a
specialist (exchange), market maker (OTC), or unexercised limit order.
Balanced Fund- A mutual fund that invests in both stocks and bonds.
Bear Market- A declining market.
Bearer Bond- An unregistered bond whose ownership is determined by possession.
Bid- The highest currently unexercised offer to buy a security.
Big Board- A popular term for the NYSE, the largest U.S. Stock exchange.
Bills- Government debt securities issued on a discount basis by the U.S. Treasury for
periods of less than one year.
Block Trade- A trade involving 10,000 shares or more;usually handled by a block trader.
Blue-Chip Stocks- Shares of a large,mature company with a steady record of profits and
dividends and a high probability of continued earnings.
Bond- A debt obligation (usually long-term) in which the borrower promises to pay a set
coupon rate until the issue matures; at which time the principal is repaid. Some bond issues
are secured by a mortgage on a specific property,plant, or piece of equipment.
Bond Rating- An estimated index of a bonds quality/ default risk.
Book Value of Common- The total assets of an enterprise minus its liability-Shares ties,
minority interest,and preferred stock par,divided by the number of outstanding common
shares
Broker- An employee of a financial intermediary who acts as an agent in the buying and
selling securities. Unlike a dealer, a broker never owns the securities that he or she trades
for his or her customers.
Brokerage Firm- A firm that offers such services as access to the securities
markets,managed accounts,margin loans,investment advice, and underwriting.
Bull Market- A rising market.
Bullion- Gold,silver, or other precious metals in the form of bars,plates, or certain coins
minted to contain a specific unit of weight.
Call- An option to buy stock or some other asset at a prespecified period.
Call Price- The price at which a bond,preferred,warrant, or other security may be redeemed
prior to maturity. Also commonly referred to as the redemption price.
Capital Distribution-A dividend paid out of capital rather than earnings. Such distributions
are not taxed when received but do reduce the investment basis.
Capital Gains- The difference between the basis and sales price of an investment asset.
Cash Flow- Reported profits plus depreciation,depletion, and amortization.
Cash Market- A market where physical commodities (spot) are traded for cash.
Options Exchange- The largest of the options-trading exchanges.
CBT- The largest of the commodities exchanges lists futures in
wheat,corn,oats,soybeans,and long-term bonds.
CD- A special redeemable debt obligation issued by banks and other depository institutions.
CFTC- The federal regulator of the futures markets.
MERC- The second largest of the commodity exchanges;lists futures in cattle,hogs,pork
bellies,and short term debt securities.
Churning- Overactive trading of customer accounts designed to generate commissions for
the manager/broker.
Closed-End Fund- A type of investment company organized as a corporation with its stock
traded in the same markets as other stocks. Its price may vary appreciably from the fund's
net asset value.
Commodity- Any article of commerce; in investment terminology,any of a select group of
items traded on one of the commodity exchanges. Such commodities are traded either spot
(for immediate delivery) or in the futures market(for delivery at a prespecified future date)
Common Stock- This represents proportional ownership of an incorporated enterprise.
Common stockholders are the residual claimants for assets after all holders of debt and
preferred stock have received their contractual payments.S&P
Consumer Price Index (CPI)- A monthly cost-of-living index prepared by the U.S.
Government's Bureau of Labor Statistics.
Convertible- Not the car rather A bond or preferred stock that may be exchanged for a
specific number of common shares.
Debit Balance- A negative balance in a margin account.
Deflation- An increase in the purchasing power of the dollar or some other currency unit.
Depression- An economic collapse with high unemployment and very slow or negative
economic growth.
Disinflation- A slowing in the rate at which prices increase.
Dividends- Payments made by companies to their stockholders usually financed from profits.
Dow or Dow Jones Industrial Average- The most commonly referred to index of stock
prices. The index is computed as the sum of the prices of 30 leading industrial firms divided
by a divisor that is adjusted to reflect splits of its components. Dow Jones indexes are also
computed for utilities and transportation companies.
The Federal Reserve System- The federal government agency that exercises monetary
policy through its control over banking systems.
Front-End Loading-Taking a large portion of a sales fee from the early payments of a
long-term purchase contract.
Futures- Contracts to buy and receive or to sell and deliver a commodity or financial
instrument at a date and in accord with established rules.
Gross Domestic Product- The sum of the market values of all final goods and services
produced annually in a country.
Growth Fund- A common-stock mutual fund that seeks price appreciation by concentrating
on growth stocks.
Inflation- The rate of rise in the price level of goods and services.
Incorporation- The forming of a business into a legal body endowed with various rights and
duties.
Junk Bonds-High risk bonds,usually promising a very high indicated return coupled with
substantial default risk.
Load- The selling fee applied to a mutual fund purchase.
Market Price- The current price at which willing buyers and willing sellers will transact.
NASD- The self regulator of the OTC market.
New York Stock Exchange(NYSE)- The largest U.S. Stock exchange.
OTC(Over the Counter)- The market in unlisted securities and off-boarding trading in listed
securities.
Par Bond- The face value at which an issue matures.
Portfolio- A holding of one or more securities by a single owner institution or individual.
Proxy- A shareholder ballot.
Put- An option to sell a stock at a specified price over a specified period.
Rally- A brisk general rise in securities prices usually following a decline.
Recession- An economic downturn. The National Bureau of Economic Research informs the
government and nation when the economy is in recession. In the past ,two successive
quarters of decline in real ( in non-inflationary dollars) GDP has signaled the start of a
recession
Stagflation-A period of inflation combined with a slow economic growth and rising
unemployment possibly including recession.
Risk- The degree of uncertainty associated with an expected investment.
S&P 500 Index- A valued weighted stock index based on 500 large firms' share prices.
Stock Exchange- An organization for trading a specific list of securities over specific trading
hours usually at a single location.
Takeover Bid- An offer designed to acquire a sufficient number of shares to achieve
working control of a target firm.
Volume- The number of shares traded during a particular period.
Thanks For The Visit !! Raymond E Smith
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