| 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. |
