Appraise Financial Glossary

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.