Remark
|
Explanation
|
Accrued Interest
|
accumulated interest from last payment to date of sale
|
Accumulated Dividend
|
non-paid dividends due to cumulative, preferred stockholders
|
Acquisition
|
taking control over another company
|
Adjusted Basis
|
adjusted, net sales price of stock or bonds after adjusting for stock splits and
deducting commissions
|
Advanced Refunding
|
changing a government security prior to its due date for another government security
with a later maturity date. Also bonds sold at a lesser interest rate before the
call date of previously issued bonds
|
AMBAC
|
an insurance company that indemnifies bonds. In the event of the bond being defaulted,
the company pays the investor the par price
|
ADR
|
stock of a foreign corporation that is held by a bank for an investor. The bank
handles the currency conversion of dividends, as well as the payment of taxes due.
|
AMEX
|
American Stock Exchange
|
Asked price
|
the lowest price at which a security is being offered for sales at 4 P.M. EST
|
Average
|
arithmetic mean price of a security
|
Bid price
|
the highest price at which a security can be bought at 4 P.M. EST
|
Bill
|
federally taxed US government security issued in a $1000 minimum denomination and
having a maturity of 10 years or longer
|
Block the lessor:
|
10,000 or more shares of stock or $200,000 worth of stock
|
Bond
|
a corporate or governmental security of a long-term nature, which has a fixed interest
rate and dates upon which principal and interest are to be paid.
Baby Bond: bond with a par value of less than $1000
Bearer Bond: bond certificate with coupons attached for the bearer to use to collect
interest at state intervals
Callable Bond: bond redeemed, prior to maturity by the issuer, for a premium price
to the holder
Corporate Bond: taxable bond of a private corporation with a par value of $1000
and having a fixed term
Coupon Bond: same as bearer bond
Discount Bond: bond offered at a discount, or being sold for less than you paid
for it.
Flower Bond: government bond whose par value is accepted as payment for a decedent's
estate taxes provided the decedent was the hold on the date of death.
General Obligation Bond: a municipal bond backed by the full faith and credit (taxing
power) of the municipality.
Hospital Revenue Bond: bond issued by a government on order to finance hospital
or nursing home construction
Long Bond: 30 year Treasury bond or bond maturing after 10 years
Mortgage Bond: corporate bond secured by a mortgage on specific real estate, with
the principal and interest being paid back in installments prior to maturity
Municipal Bond: issued for a par value of at least $5000 and tax exempt for federal
purposes and in the state of issue
Par Bond: a bond selling for its face value of par
Prerefunded Bond: corporate or municipal bond having repayment guaranteed by a second
bond issue. Put bond redeemed before maturity at full face value.
Redeemable Bond: same as Callable
Revenue Bond: same as Municipal Revenue
Savings Bond: U.S. Savings bond that is discounted and nontransferable upon issue
and pays face value at maturity at which time it is federally taxable (issued in
denominations of $50 to $10,000)
Serial Bond: municipal bonds with varying maturity dates for the purpose of gradually
retiring the entire issue over the period of fixed redemption rates
Short Bond: bond having a short maturity period of from 1 to 2 years or less
Tax Exempt Bond: same as Municipal Bond
Treasury Bond: U.S. Treasury Bond that is federally taxable and issued for 10 years
at a minimum value of $1000.
Zero-Coupon Bond: bond that pays a lump sum of interest at maturity
|
Call
|
security that is redeemed before maturity by the issuer
|
Call Feature
|
agreement between the buyer and bond issuer detailing the redemption price when
the bond is called before maturity
|
Call Option
|
the option or right to buy a certain number of shares of stock or a commodity at
a preset price on or before a specific date, usually at a premium
|
Call Price
|
the price at which a Call Feature security can be redeemed
|
Capital Changes
|
historical corporate securities data
|
CD - Certificate of Deposit
|
interest-paying certificate issued for funds deposited in a bank of a set time period
|
Certificate
|
documentary evidence of indebtedness of a corporation, or ownership in a corporation
|
Class
|
classification of a corporation's securities based on their specific features
|
Close
|
the last or closing price of a security at the end of the trading day
|
Closing Price
|
same as Close
|
CMO
|
Collateralized Mortgage Obligation: mortgage pool bond with different maturity class(tranches)
that pay via payments and prepayments of principal and interest
|
Common Stock
|
ownership of a corporation with the right to vote and receive dividends
|
Consolidation
|
the merging of 2 or more corporations into 1 with the dissolution of the original
companies
|
Conversion Price
|
a bond's par value cash amount when it is converted to a share of common stock
|
Convertible Securities
|
bonds and preferred stock that can be exchanged for other securities
|
Cost Basis
|
original price of an asset
|
Coupon
|
removable portion of bond certificate which the holder gives to the issuer for periodic
payment of interest due the holder for the life of the bond
|
Cumulative Preferred
|
preferred stock whose dividends accumulate until paid
|
CUSIP®
|
Committee on Uniform Securities Identification Procedures- Unique identifying numbers/letters
assigned to an individual security
|
Custodian
|
financial institution having custody of securities for a client
|
Dated date
|
start date of interest accruing on a bond
|
Date declared
|
date corporate directors declare that a dividend is going to be paid
|
Dealer
|
people who buy and sell securities as principal, versus a broker who is someone's
agent
|
Debenture
|
a corporate bond that is backer by the credit of the issuer
|
Delisting
|
removing a security from an exchange for cause
|
Discount Yield
|
percentage a security yields at maturity when sold at a discount
|
Dividend
|
periodic corporate earnings distributed to stockholders in the form of money or
stock
|
Escrow
|
money or securities held by third parties pending completion of some contract terms
|
Estate
|
cash, securities and property held by a decedent at the time of death
|
Estate Tax
|
state or federal tax imposed on assets of an estate
|
Exchange Rate
|
currency price received for exchanging one country's currency for another country's
currency
|
Ex-Dividend
|
date that a stock goes ex-dividend (4 days before the record date and about 3 weeks
before the dividend is paid) Anyone buying stock after this date is not entitled
to the dividend
|
Face Value
|
value of a security that is displayed on the certificate
|
Federal Agency Security
|
debt instrument issued by a government agency and not backed by the Treasury
|
FHLMC
|
Federal Home Loan Mortgage Corporation - Agency that pools and resells residential
mortgages
|
FNMA
|
Federal National Loan Mortgage Association Corporation, sponsored by the government,
which purchases mortgages from lenders and sells them to investors
|
Fiduciary
|
the asset trust holder for a beneficiary
|
Fixed Income
|
Investment security paying a fixed amount of interest on a regular basis
|
Floater
|
variable interest rate security whose rate is tied to another interest rate
|
Foreign Corporation
|
a corporation organized under the laws of a foreign country
|
Fractional Share
|
less than one full share of stock
|
Freddie Mac
|
Federal Home Loan Mortgage Corp (FHLMC). Mortgage backed securities that are packages,
sold and guaranteed by FHLMC and issued in denominations of $25,000
|
Full-Service Broker
|
brokers who do research and give advice, while charging high fees
|
Funds
|
Agency: fund of securities of a corporation that is government sponsored
Close-Ended: fund of securities having a fixed number of shares, traded on a large
stock exchange and usually sold at a discount form net asset value. They are also
called "exchange traded" or "over the counter" funds.
Equity: fund comprising only stock. Also called stock fund
Index: a mutual fund containing a portfolio of an index that is broad based and
reflects the composite of the market
International: overseas funds invested in foreign markets. It also includes global
funds (US and foreign securities), regional funds (fund invested in specific geographic
regions) and country funds (fund invested in a specific foreign country)
Money Market: pooled funds invested in short-term debt obligations
Mutual: a collection of stocks, bonds or other types of securities that a group
of investors own, but is managed by a professional investment company
Sinking: a cash reserve that is established at the time that a bond is issued and
is used to pay for bond calls
Treasury: fund of short or long term US government securities
|
Ginnie Mae
|
Government National Mortgage Association (GNMA) - Guaranteed payments, from mortgage
principal and interest payments (less bank service charges), paid to investors
|
Government Obligations
|
US Treasury bonds, bills notes and savings bonds representing debts that the government
promises to repay investors
|
High Price
|
the highest closing price for a stock
|
Holder of Record
|
a company's owner of securities on a specific date as recorded in the company's
book. Also called stockholder of record
|
Hospital Revenue Bond
|
a municipal or state agency bond issued for hospital or nursing home construction
|
Income
|
the monetary payment received for services performed, goods sold, or revenue from
investments
|
Independent Broker
|
a member of the New York Stock Exchange who handles overflow security trades for
floor brokers; or brokerage firms without floor brokers
|
Inheritance Tax Return
|
state income tax return required of executors and administrators of estate for determination
of income taxes due the state
|
Institutional Broker
|
a broker dealing in large volumes of securities for banks, mutual funds, pension
finds, insurance companies and other institutional investors
|
Institutional Investor
|
an organization investing in large amounts of securities with its own funds or the
funds of others which are entrusted to it
|
Interest
|
money charged, over a fixed period of time, for usage of money loaned to a borrower
|
Irrevocable Trust
|
a trust that once created cannot be terminated without the consent of the beneficiary
|
Issuer
|
trust, agency, corporation, municipality or government having the legal right to
issue securities
|
Limited Partnership
|
investment partner sharing limited liability and having no managerial functions,
while receiving some return on investment
|
Long Coupon
|
an interest payment on a bond that is issued more than 6 months prior to the first
interest payment date
|
Low Price
|
lowest price paid for a security
|
Maturity Date
|
the date on which a bond expires and the holder is entitled to the face value of
the bond
|
Mean Price
|
average of the high and low price of stock
|
Municipal Investment Trust
|
unit investment trust that purchases municipal bonds that pay tax-free, monthly
interest to trust shareholders
|
Municipal Note
|
a municipal debt with a maturity date of no more that 2 years
|
Mutual Fund
|
a collection of stocks, bonds or other securities that is owned by a group of investors
but managed by a financial professional
|
NASDAQ
|
computerized system of security quotations by the National Association of Securities
Dealers enabling brokers and dealers to have instant access of security quotations
for over- the- counter and many NYSE listed securities
|
Note
|
written guarantee to pay a specified amount to a lender on a specific date
|
NYSE
|
New York Stock Exchange that prices and trades securities of the major corporations
in the country
|
OID
|
Original Issue Discount for a bond that is issued below its face amount
|
Option
|
the right to buy or sell a security for a specific price for a specific time period
|
Ordinary Interest
|
interest that is calculated based on a year of 360 days
|
Original Maturity
|
the time from a bond's original issue date to its maturity date
|
PAR
|
face value of the bond
|
Pass-through-security
|
debt obligation pooled as a share that intermediaries receive from debtors
|
Paydown
|
the deduction resulting from the refunding of a bond issue for an issue of a lower
value
|
Paying Agent
|
agent or band that receives (for a fee) funds from stock and bond issuers for payment
of dividends to stockholders, and principal plus interest to bond holders
|
Payment Date
|
date of payment for a declared stock dividend or bond interest payment
|
Pool
|
investment funds pooled for purposes of diversification and increased return on
investments
|
Preferred Stock
|
corporate stock with guaranteed dividend payments that do not increase with increased
profits and with greater chance of return upon failure of the corporation
|
Principal Amount
|
the face amount of an obligation that the borrower must pay back at maturity
|
Privately Held
|
corporate securities that are not available to the public
|
Probate
|
process whereby a will is submitted to a Probate Court for appointment of an executor/administrator
to carry out the terms of the will
|
Publicly Held
|
corporate securities that are available to the public
|
Quoted price
|
the last sale or purchase price of a security
|
Rate of Exchange
|
see Exchange Rule
|
Record Date
|
date upon which stock dividends are paid to shareholders whose names exist on the
corporate books as of that date
|
Refunding
|
a new security debt obligation replaces an old obligation in order to secure lower
interest cost
|
Revocable Trust
|
a trust allowing you to change the terms over a period of time
|
Right
|
limited time stock offerings to stockholders to buy more shares at below market
price
|
Round Lot
|
stocks sold or bought in multiples of 100 shares
|
Secondary Market
|
exchanges or markets where bonds and debt instruments are bought and sold via brokers
after their original issue date
|
Securities Analyst
|
employee of a bank, brokerage or investment firm who researches the financial status
of corporations or industries
|
Security
|
written certificate or electronic record showing proof of ownership in a stock or
bond
|
Settlement Date
|
the date upon which the securities are delivered and paid for after being bought
or sold. For stocks and bonds it is the 5th business day after the trade. For listed
options and government securities, it is the next business day after the transaction
|
Share
|
basic unit of ownership of a corporation in the form of stock
|
Shareholder
|
person having equity ownership in a company or corporation by way of owning stock
certificates showing the amount of shares owned.
|
Short Coupon
|
a bond interest payment covering a period less than 6 months
|
Split
|
the number of shares are increased, while the value per share decreases in order
to encourage investors to buy more shares
|
Sponsor
|
person or institution promoting investment in limited partnerships, mutual funds
or stocks
|
Stock
|
certificate denoting ownership in a corporation
|
Stockbroker
|
employee of brokerage house who acts as an agent for investors in buying and selling
securities
|
Stock Certificate
|
written proof of ownership in a corporation showing the owners name, number of shares
owned and the par value of the shares.
|
Stock Exchange
|
market location where stocks and bonds are traded by members of the exchange
|
Stock Holder
|
individual having ownership in a corporation and possessing a stock certificate
as proof of ownership
|
Stock Option
|
the right to buy or the obligation to sell a particular investment at a predetermined
price for a set time period Subordinated debt that is lower in claim than other
debt
|
Tax Basis
|
purchase price of a stock or bond, including any commission charged
|
Tax Exempt Security
|
a security that is exempt from taxation
|
Ticker Symbol
|
alphabetic letters serving as abbreviated security identification for trading purposes
|
Trade Date
|
date upon which a security is traded
|
Trader
|
a person buying or selling securities for a profit
|
Transfer Agent
|
a corporation or financial institution appointed by a corporation to serve as its
agent for maintaining stock and bond records, and having the authority to issue
or cancel certificates
|
Treasury Bond
|
federally taxed UD government security varying in denomination from $1000 to $1,000,000
and having a maturity from 1 to 10 years
|
Treasury Strip
|
US government zero-coupon bond sold at a deep discount or a fraction of their par
value initially and close to par near maturity
|
Trust
|
the property (real or financial) held by a person or institution for the benefit
of another person
|
Trustee
|
person holding title to a trust
|
Unissued Stock
|
a corporation's stock that is authorized by its charter, but never issued for sale
|
Unit
|
basic quantity of securities accepted for trade
|
Unit Investment Trust
|
a specialized kind of investment company, which assembles a fixed portfolio of securities
(usually tax exempt municipal bonds) and offers interest in that portfolio to the
public with minimum investment of $1000 to $5000.
|
Unit of Trading
|
minimum number of a security accepted for trading on an exchange. This is usually
100 shares for stock and $1000 to $5000 par value for bonds.
|
Unlisted Security
|
a security that is traded over-the-counter and not listed on any exchange
|
Warrant
|
right issued by corporations for investors to buy stock at a preset price for a
limited time.
|