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Accounts Payable

Accrual Basis
Accrual Bonds

Accrued Interest
Acquisition
Adjusted EPS
AFM
After-tax Return
AGICO
Alpha
American Depository
Receipt (ADR)

Amortization

Annual Meeting

Annual Report
Annuity
Arbitrage
Ask Price
Asset
Asset Allocation

Amounts owing on open account to creditors for goods and


services.Accounts Receivable Money owed to a business for
merchandise or services sold on open account.
Accounting method whereby income and expense items are recognized
as they are earned or incurred, even though they may not have been
received or actually paid in cash.
Bonds that do not make periodic interest payments, but instead accrue
interest until the bond matures. Also known as zero-coupon bonds.
Interest that has accumulated between the most recent payment and the
sale of a security, i.e. deemed to be earned on a security but not yet paid
to the investor. At the time of the sale, the buyer pays the seller the
security's price plus accrued interest
One company taking over controlling interest in another company.
Adjusted Earnings per share
Amman Financial Market
An investment's return after all income taxes have been deducted.
Acronym for Arabian General Investment Corporation. The company
has changed its name to SHUAA Capital psc in April 2001.
Measure of risk-adjusted performance. An alpha is usually generated by
regressing the security or mutual fund's excess return on benchmark
index's excess return.
Receipt for the shares of a foreign-based corporation held in the vault of
a U.S. bank and entitling the shareholder to all dividends and capital
gains.
Accounting procedure that gradually reduces the cost value of a limited
life or intangible asset, such as goodwill, through periodic charges to
income. Amortization also refers to the reduction of debt by regularpayments of interest and principal suffici
Once-a-year meeting when the managers of a company report to
stockholders on the year's results, and the board of directors stands for
election for the next year.
Yearly record of a corporation's financial condition that must be
distributed to shareholders. Included in the report is a escription of the
company's operations as well as its balance sheet and income statement.
A long-term investment that provides tax-deferred growth and income at
regular intervals for as long as you specify.
Profiting from differences in price when the same security, currency, or
commodity is traded on two or more markets.
The price at which a market maker is willing to sell a specified quantity
of a particular security.
Anything having commercial or exchange value that is owned by a
business, institution, or individual.
Apportioning of investment funds among categories of assets, such as

cash equivalents, stocks, fixed-income investments, and such tangible


assets as real estate, precious metals, and collectibles. Asset allocation
affects both risk and return and is a cen
Assets Under
Management
Authorized Shares

Bad Debt
Balance of Payments
Balance of Trade
Balance Sheet
Balanced Fund
Basis point
Bear Market
Bearer security

Beta

Beta
Bid
Bid Price
Blue Chip

Board of Directors
Bond

The value of the assets that a company manages, but does not own.
Maximum number of shares of any class a company may legally create
under the terms of its articles of incorporation. Normally, a corporation
provides for future increases in authorized stock by vote of the
stockholders. The corporation is not required to
Open account balance or loan receivable that has proven uncollectible
and is written off.
System of recording all of a country's economic transactions with the
rest of the world during a particular time period.
Net difference over a period of time between the value of a country's
imports and exports of merchandise.
Financial report showing the status of a company's assets, liabilities, and
owners' equity on a given day.
A fund that invests in both stocks and bonds whose objective is both
growth and income.
One one-hundredth of 1 percent. Yield differences among fixed-income
securities are stated in basis points
Prolonged period of falling prices.
A security that has no identification as to owner. It is presumed to be
owned by the person who holds it. Bearer securities are freely
negotiable, since ownership can be quickly transferred from seller to
buyer by delivery of the instrument. However, note
Coefficient measuring a stock's relative volatility. The beta is the
covariance of a stock in relation to the rest of the stock market.
measure of the relative volatility of a stock or other security as
compared to the volatility of the entire market (usually measured for a
benchmark index). A beta above 1.0 shows greater volatility than the
overall market, while betas below 1.0 are less v
The price at which a buyer will purchase a security.
The price at which a market-maker is willing to purchase a specified
quantity of a particular security.
Common stock of a nationally known company that has a long record of
profit growth and dividend payment and a reputation for quality
management, products, and services.
Group of individuals elected, usually at an annual meeting, by the
shareholders of a corporation and empowered to carry out certain tasks
as spelled out in the corporation's charter.
Any interest-bearing or discounted government or corporate security
that obligates the issuer to pay the bondholder a specified sum of money,

Bond insurers and


reinsurers

Bond Ratings

Bonus Issue

Book-entry
Bottom-Up Approach
Broker
BSE
Budget
Budget Deficit
Budget Surplus
BVPS
Call Option
Call premium
Callable bonds
Cap
Capital Asset
Capital Gain
Capital Markets
Capital Stock

usually at specific intervals, and to repay the principal amount of the


loan at maturity.
A partial list of bond insurers includes American Municipal Bond
Assurance Corp. (AMBAC), ACA Financial Guaranty, Asset Guaranty
Insurance Co., AXA Re Finance, Capital Guaranty Insurance Co.,
Capital Markets Assurance Corp. (CapMAC), Capital Reinsurance Co
An indicator of the creditworthiness of specific bond issues. These
ratings are often interpreted as an indication of the likelihood of default
on the part of the respective bond issuers. Bonds with the smallest
default probability are rated AAA (or Aaa)
Also known as a capitalization or scrip issue. This is when a company
issues free shares to a company's existing shareholders. No money
changes hands and the share price falls pro rata. This is usually used as
an exercise to make the shares more marketabl
A method of recording and transferring ownership of securities
electronically, eliminating the need for physical certificates.
An investment strategy that focuses on individual stocks, rather than
general market trends. It assumes strong companies can perform well
independent of the market environment.
Person who acts as an intermediary between a buyer and seller, usually
charging a commission.
Bahrain Stock Exchange
Estimate of revenue and expenditure for a specified period.
Excess of spending over income for a government, corporation, or
individual over a particular period of time.
Excess of income over spending for a government, corporation, or
individual over a particular period of time.
Book Value per share
Right to buy shares of a particular stock or stock index at a
predetermined price before a preset data, in exchange for a premium.
A dollar amount, usually stated as a percent of the principal amount
called, paid by the issuer as a "penalty" for the exercise of a
call provision.
Bonds which are redeemable by the issuer prior to the maturity date at a
specified price at or above par.
The top interest rate that can be paid on a floating-rate security.
Long-term asset that is not bought or sold in the normal course of
business.
Difference between an asset's purchase price and selling price, when the
difference is positive.
Markets where capital funds - debt and equity - are traded.
Stock authorized by a company's charter. The number and value of
issued shares are normally shown, together with the number of shares

authorized, in the capital accounts section of the balance sheet.


Rate of interest used to convert a series of future payments into a single
Capitalization Rate
present value.
A business that generates a continuing flow of cash. Such a business
usually has well-established brand names whose familiarity stimulates
Cash Cow
repeated buying of the products. Stocks that are cash cows have
dependable dividends.
Cash payment to a corporation's shareholders, distributed from current
Cash Dividend
earnings or accumulated profits.
Instruments or investments of such high liquidity and safety that they
Cash Equivalents
are virtually as good as cash. Examples are Money Market Funds and
Treasury Bills.
Type of fund that has a fixed number of shares usually listed on a major
Closed-End Fund
stock exchange. Unlike open-end funds, closed-end funds do not stand
ready to issue or redeem shares on a continuous basis.
An investment company created with a fixed number of shares which
Closed-end investment
are then traded as listed securities on a stock exchange. After the initial
company
offering, existing shares can only be bought from existing shareholders.
CMO (Collateralized A bond backed by a pool of mortgage pass-through securities or
Mortgage Obligation) mortgage loans, which generally supports several classes of obligations.
Upper and lower limits (cap and floor, respectively) on the interest rate
Collar
of a floating-rate security.
Units of ownership of a public corporation. Owners typically are entitled
to vote on the selection of directors and other important matters as well
Common Stock
as to receive dividends on their holdings. In the event that a corporation
is liquidated, the claims of sec
Consolidated
Financial statement that brings together all assets, liabilities, and
Financial Statement
operating accounts of a parent company and its subsidiaries.
Ownership of more than 50% of a corporation's voting shares. A much
smaller interest, owned individually or by a group in combination, can
Controlling Interest
be controlling if the other shares are widely dispersed and not actively
voted.
Corporate securities (usually preferred shares or bonds) that are
Convertibles
exchangeable for a set number of another form (usually common shares)
at a prestated price.
A legal entity, separate and distinct from the persons who own it. It has
three chief distinguishing features: limited liability (owners can lose
Corporation
only what they invest); easy transfer of ownership through the sale of
shares; and continuity of existence.
Rate of return that a business could earn if it chose another investment
with equivalent risk - in other words, the opportunity cost of the funds
Cost of Capital
employed as the result of an investment decision. Cost of capital is also
calculated using a weighted average

Stocks that tend to rise in value when the economy is turning down or is
in recession.
This part of a bearer bond denotes the amount of interest due, and on
what date and where payment will be made. Bearer coupons are
Coupon
presented to the issuer's designated paying agent for collection. With
registered bonds, physical coupons don't exist. (See "
CSE
Casablanca Stock Exchange
Current assets divided by current liabilities. The ratio shows a
Current Ratio
company's ability to pay its current obligations from current assets.
The ratio of interest to the actual market price of the bond, stated as a
Current yield
percentage. For example, a bond with a current market price of $1,000
that pays $80 per year in interest would have a current yield of 8%.
The Committee on Uniform Security Identification Procedures,
established under the auspices of the American Bankers Association to
CUSIP
develop a uniform method of identifying securities. CUSIP numbers are
unique nine-digit numbers assigned to each series of se
Bank or other financial institution that keeps custody of stock
Custodian
certificates and other assets of a fund, individual, or corporate client.
Stocks that tend to rise quickly when the economy turns up and to fall
Cyclical Stocks
quickly when the economy turns down.
Date on which a shareholder must officially own shares in order to be
Date of Record
entitled to a dividend.
Dated date (or issue
The date of a bond issue from which the first owner of a bond is entitled
date)
to receive interest.
Unsecured debt obligation, issued against the general credit of a
Debenture
corporation, rather than against a specific asset.
Failure to pay principal or interest when due. Defaults can also occur for
Default
failure to meet nonpayment obligations, such as reporting requirements,
or when a material problem occurs for the issuer, such as a bankruptcy.
Stocks and bonds that are more stable than average and provide a safe
Defensive Securities
return on an investor's money. When the stock market is weak, defensive
securities tend to decline less than the overall market.
Removal of a company's security from an exchange because the firm did
Delisting
not abide by some regulation or the stock does not meet certain financial
ratios or sales levels.
Amortization of fixed assets, such as plant and equipment, so as to
Depreciation
allocate the cost over their depreciable life.
Greatly reducing government regulation in order to allow freer markets
Deregulation
to create a more efficient marketplace.
A contract whose value is based on the performance of an underlying
Derivative Instrument
financial asset, index, or other investment.
Lowering of the value of a country's currency relative to gold and/or the
Devaluation
currencies of other nations.
Countercyclical Stocks

The amount by which the purchase price of a security is less than the
principal amount, or par value.
Short-term obligations issued at discount from face value, with
Discount note
maturities ranging from overnight to 360 days. They have no periodic
interest payments; the investor receives the note's face value at maturity.
Discount rate
The rate the Federal Reserve charges on loans to member banks.
Div Yield
Dividend Yield
Diversification
Spreading of risk by putting assets in several categories of investments.
1. A company's payment of profits to its stockholders. 2. A mutual fund's
payment of profits to its shareholders. 3. A return of part of the premium
Dividend
on participating insurance to reflect the difference between the premium
charged and the combination of ac
Percentage of earnings paid to shareholders in cash. In general, the
Dividend Payout Ratio
higher the payout ratio, the more mature the company.
Annual percentage of return earned by an investor on a stock. The yield
Dividend Yield
is determined by dividing the amount of the dividends per share by the
current market price per share.
A popular index in the United States used to measure and report value
Dow Jones Industrial changes in representative US stock groupings. "The Dow" is
Average (DJIA)
a price-weighed average of 30 actively traded blue chip stocks primarily
of industrial companies.
The weighted maturity of a fixed-income investment's cash flows, used
Duration
in the estimation of the price sensitivity of fixed-income securities for a
given change in interest rates.
DVPS
Dividend per share
Earnings Per Share
Portion of a company's profit allocated to each outstanding share of
(EPS)
common stock.
EFG
EFG-Hermes (Egypt)
A provision within a bond giving either the issuer or the bondholder an
option to take some action against the other party. The most common
Embedded option
embedded option is a call option, giving the issuer the right to call, or
retire, the debt before the scheduled matu
EMNEX
Emirates Bank International UAE Equity Index
EPS
Earnings per Share
Equity Fund
A fund that invests primarily in stocks. Also known as a stock fund.
Bond denominated in U.S. dollars or other currencies and sold to
Eurobond
investors outside the country whose currency is used.
EV
Enterprise Value
EV / Equity
Enterprise Value to Equity Ratio
The interval between a fund distribution's record date and payable date.
Ex-Dividend
During this period, investors who purchase shares are not entitled to the
distribution payment.
Discount

Exercise Price

Extension risk

Face amount

Federal funds rate

Fiscal Year
Fixed Asset
Floating-rate bond
Floor
Forward Contract

Front Running
Futures Contract
General obligation
bond
Global Depository
Receipt (GDR)

Growth Stock

Hedge

Hedge Fund

Price at which the stock or commodity underlying a call or put option


can be purchased (call) or sold (put) over the specified period
The risk that rising interest rates will slow the anticipated rate at which
mortgages or other loans in a pool will be repaid, causing investors to
find their principal committed longer than expected. As a result, they
may miss the opportunity to earn a hi
Par value (principal or maturity value) of a security appearing on the
face of the instrument
The interest rate charged by banks on loans of their excess reserve funds
to other banks. The Federal Reserve's ability to add or withdraw
reserves from the banking system gives it close control over this rate.
Changes in the federal funds rate are sometim
A 365-day accounting period for which a company or mutual fund
prepares financial statements.
Tangible property used in the operations of a business, but not expected
to be consumed or converted into cash in the ordinary course of events.
A bond for which the interest rate is adjusted periodically according to a
predetermined formula, usually linked to an index.
The lower limit for the interest rate on a floating-rate bond.
Purchase or sale of a specific quantity of a commodity, government
security, foreign currency, or other financial instrument at the current or
spot rate, with delivery and settlement at a specified future date.
Practice whereby a securities or commodities trader takes a position to
capitalize on advance knowledge of a large upcoming transaction
expected to influence the market price.
An agreement to buy or sell a specific amount of a commodity or
financial instrument at a particular price on a stipulated future date.
A municipal bond secured by the pledge of the issuer's full faith, credit
and taxing power.
Receipt of shares in a foreign-based corporation traded in capital
markets around the world. The advantage to the issuing company is that
they can raise capital in many markets, as opposed to just their home
market. The advantage of GDRs to local investor
Stock of a corporation that has exhibited faster-than-average gains in
earnings over the last few years and is expected to continue to show
high levels of profit growth.
Strategy used to offset investment risk, typically from adverse
movements in interest rates or securities prices. A perfect hedge is one
eliminating the possibility of future gain or loss.
Private investment partnership or an off-shore investment corporation in
which the general partner has made substantial personal investment, and
whose offering memorandum allows for the fund to take both long and
short positions, use leverage and derivati

High-yield bond

Holding Company
Hostile Takeover
IFCG
Index

Bonds issued by lower-rated corporations, sovereign countries and other


entities rated Ba or BB or below and offering a higher yield than more
creditworthy securities, sometimes known as junk bonds.
A company that owns enough voting stock in another firm to control
management and operations by influencing or electing its board of
directors. Also called parent company.
Takeover of a company against the wishes of current management and
the board of directors.
International Finance Corporation Global Index
Statistical composite that measures changes in the economy or in
financial markets, often expressed in percentage changes from a base
period.

Initial Public Offering


A corporation's first offering of stock to the public.
(IPO)
Practice of buying and selling shares in a company's stock by that
Insider Trading
company's management or board of directors, or by a holder of more
than 10% of the company's shares.
Right or nonphysical resource that is presumed to represent an
Intangible Asset
advantage to the firm's position in the marketplace. Such assets include
copyrights, patents, trademarks, goodwill, and franchises.
Compensation paid or to be paid for the use of money. Interest is
Interest
generally expressed as an annual percentage rate.
Internal Rate of
Discount rate at which the present value of the future cash flows of an
Return (IRR)
investment equal the cost of the investment.
Bonds considered suitable for preservation of invested capital by the
Investment-grade
rating agencies and rated Baa or BBB or above.
An entity which issues and is obligated to pay principal and interest on
Issuer
securities.
A debt obligation with a rating of Ba or BB or lower, generally paying
interest above the return on more highly rated bonds, sometimes known
Junk Bond
as high-yield. This low-rated bond as it offers higher interest rates along
with higher risk, makes it more appropr
KSE
Kuwait Stock Exchange
Leverage
The use of borrowed money to increase investing power.
Takeover of a company, using borrowed funds. Most often, the target
Leveraged Buyout
company's assets serve as security for the loans taken out by the
acquiring firm.
Liability
Claim on the assets of a company.
LIBOR (London
The rate banks charge each other for short-term Eurodollar loans.
Interbank Offered
LIBOR is frequently used as the base for resetting rates on floating-rate
Rate)
securities.
Ability to buy or sell an asset quickly and in large volume without
Liquidity
substantially affecting the asset's price.

Purchase of all of a company's publicly held shares by the existing


management, which takes the company private.
Charge against investor assets for managing the portfolio of an open- or
Management Fee
closed-end fund as well as for such services as shareholder relations or
administration.
Adjust the valuation of a security or portfolio to reflect current market
Mark to the Market
values.
Value of a corporation as determined by the market price of its issued
Market Capitalization and outstanding common stock. It is calculated by multiplying the
number of outstanding shares by the current market price.
A measure of the ease with which a security can be sold in the
Marketability
secondary market.
Maturity
The date when the principal amount of a security is payable.
Date on which the principal amount of a note, bond, certificate of
Maturity Date
deposit, or other debt security becomes due and payable.
Combination of two or more companies, either through a pooling of
interests, where the accounts are combined; a purchase, where the
Merger
amount paid over and above the acquired company's book value is
carried on the books of the purchaser as goodwill; or a con
Interest of shareholders who, in the aggregate, own less than half the
Minority Interest
shares in a corporation.
Control of the production and distribution of a product or service by one
Monopoly
firm or a group of firms acting in concert.
A security representing a direct interest in a pool of mortgage loans. The
Mortgage passpass-through issuer or servicer collects payments on the loans in the
through
pool and "passes through" the principal and interest to the
security holders on a pro rata basis.
MSM
Muscat Securities Market
Also known as an open-end investment company, to differentiate it from
a closed-end investment company. Mutual funds invest pooled cash of
Mutual fund
many investors to meet the fund's stated investment objective. Mutual
funds stand ready to sell and redeem their shar
Naked Option
Option for which the buyer or seller has no underlying security position.
NBAD
National Bank of abu Dhabi
Net Asset Value (NAV) The price of a share of a fund, net of sales charges. Price may vary daily.
Method used in evaluating investments whereby the net present value of
Net Present Value
all cash flows (such as the cost of the investment) and cash inflows
(NPV)
(returns) is calculated using a given discount rate, usually a rquired rate
of return. An investment is acceptable
Net Worth
Amount by which assets exceed liabilities.
NIAT
Net Income After Tax
A bond that cannot be called for redemption by the issuer before its
Non-callable bond
specified maturity date.
Management Buyout

Off-Balance-Sheet
Financing
Offer
Offering price
Open-End Fund
Over the Counter
(OTC)
Oversubscribed
P/B
P/E
Par value
Paying agent

PB

Poison Pill
Premium
Prepayment
Prepayment risk
Present Value
Price/Earnings Ratio
(P/E)
Primary market
Principal
Private Placement
Privatization

Financing that does not add debt on a balance sheet and thus does not
affect borrowing capacity as it would be determined by financial ratios.
The price at which a seller will sell a security.
The price at which members of an underwriting syndicate for a new
issue will offer securities to investors.
A listed fund that continually creates new shares on demand. The fund
shareholders buy the shares at net asset value and can redeem them at
any time at the prevailing market price.
Market in which securities transactions are conducted through a
telephone and computer network connecting dealers in stocks and
bonds, rather than on the floor of an exchange.
Underwriting term describing a new stock issue where there are more
buyers than available shares.
Price to Book Ratio
Price to Earnings Ratio
The principal amount of a bond or note due at maturity.
Place where principal and interest are payable. Usually a designated
bank or the office of the treasurer of the issuer.
Price to Book Ratio; Compares a stock's market value to the value of
total assets less total liabilities (book value). Determined by dividing
current stock price by common shareholder equity per share (book
value), style='mso-spacerun:yes'> </span>adjusted for stock splits.
Strategic move by a takeover-target company to make its stock less
attractive to an acquirer.
The amount by which the price of a security exceeds its principal
amount.
The unscheduled partial or complete payment of the principal amount
outstanding on a mortgage or other debt before it is due.
The risk that falling interest rates will lead to heavy prepayments of
mortgage or other loans-forcing the investor to reinvest at lower
prevailing rates.
Value today of a future payment, or stream of payments, discounted at
some appropriate compound interest rate.
Price of a stock divided by its earnings per share. The P/E ratio may
either use the reported earnings from the latest year (called a trailing
P/E) or employ an analyst's forecast of next year's earnings (called a
forward P/E).
The market for new issues.
The face amount of a bond, payable at maturity.
Sale of stocks, bonds, or other investments directly to an institutional
investor.
Process of converting a publicly operated enterprise into a privately
owned and operated entity.

Profit Taking
Prospectus
Put Option
Quick Ratio
Ratings
Realized Profit (or
Loss)
Registered bond
Reinvestment risk
REMIC (Real Estate
Mortgage Investment
Conduit)
Retail Investor
Retained Earnings
Return on Equity
Revenue bond

Rights Offering
ROaA
RoaE
Secondary market
Seed Money
Selling Short
Settlement date
Sharpe Ratio

Action by short-term securities or commodities traders to cash in on


gains earned on a sharp market rise.
Formal written offer to sell securities that sets forth the plan for a
proposed business enterprise or the facts concerning an existing one that
an investor needs to make an informed decision.
Contract that grants the right to sell at a specified price a specific
number of shares by a certain date.
Cash, marketable securities, and accounts receivable divided by current
liabilities.
Designations used by credit rating agencies to give relative indications
of credit quality.
Profit or loss resulting from the sale or other disposal of a security.
A bond whose owner is registered with the issuer or its agent. Transfer
of ownership can only be accomplished when the securities are properly
endorsed by the registered owner.
The risk that interest income or principal repayments will have to be
reinvested at lower rates in a declining rate environment.
Because of changes in the 1986 Tax Reform Act, most CMOs are now
issued in REMIC form to create certain tax advantages for the issuer.
The terms REMIC and CMO are now used interchangeably.
An investor who buys securities on his own behalf, not for an
organization.
Net profits kept to accumulate in a business after dividends are paid.
Amount, expressed as a percentage, earned on a company's common
stock investment for a given period.
A municipal bond payable from revenues derived from tolls, charges or
rents paid by users of the facility constructed with the proceeds of the
bond issue.
Offering of common stock to existing shareholders who hold rights that
entitles then to buy newly issued shares at a discount from the price at
which shares will later be offered to the public.
Return on Average Assets
Return on Average Equity
Market for issues previously offered or sold.
Venture capitlist's first contribution toward the financing or capital
requirements of a start-up business.
Sale of a security not owned by the seller; a technique used (1) to take
advantage of an anticipated decline in the price or (2) to protect a profit
in a long position.
The date for the delivery of securities and payment of funds.
A measure of a portfolio's excess return relative to the total variability of
the portfolio.

SHUAA
Sinker
Sinking fund
Sovereign Risk
Speculation
Standard deviation
Stock Dividend
Swap

Synergy
Top-Down Approach
Total Return
Trade date
Transfer agent
Treasury Stock
Trustee

Turnover

Underwrite

Unit investment trust

Volatility
Window Dressing

Arabic acronym for Arabian General Investment Corporation


A bond with a sinking fund.
Money set aside by an issuer of bonds on a regular basis, for the specific
purpose of redeeming debt.
Risk that a foreign government will default on its loan or fail to honor
other business commitments because of a change in national policy.
Assumption of risk in anticipation of gain but recognizing a higher than
average possibility of loss.
The square root of the variance. A measure of dispersion of a set of data
from its mean.
Payment of a corporate dividend in the form of stock rather than cash.
The sale of a block of bonds and the purchase of another block of
similar market value. Swaps may be made to establish a tax loss,
upgrade credit quality, extend or shorten maturity, etc.
Ideal sought in corporate mergers and acquisitions that the performance
of a combined enterprise will exceed that of its previously separate
parts.
An investment strategy that focuses on general market trends and selects
specific stock sectors that can benefit from these broad trends.
Annual return on an investment including appreciation and dividends or
interest.
The date when the purchase or sale of a bond is executed.
A party appointed by an issuer to maintain records of securities owners,
to cancel and issue certificates and to address issues arising from lost,
destroyed or stolen certificates.
Stock reacquired by the issuing company and available for retirement or
resale.
A bank designated by the issuer as the custodian of funds and official
representative of bondholders.
A measure of trading activity; the volume of shares traded as a percent
of total shares listed during a specified period, usually a day or a year. In
the case of mutual funds, turnover is a measure of trading activity during
the previous year, expressed as
To assume the risk of buying a new issue of securities from the issuing
corporation or government entity and reselling them to the public.
Investment funds created with a fixed portfolio of investments that
never changes over the life of the trust. They are created by brokerage
houses, and are liquidated as investments within the trust are paid off.
They provide a steady, periodic flow of inc
Characteristic of a security, commodity, or market to rise or fall sharply
in price within a short-term period.
Trading activity near the end of a quarter or fiscal year that is designed
to dress up a portfolio to be presented to clients or shareholders.

Yield
Yield curve
Yield to call

Yield to maturity

Zero-coupon bond

The annual percentage rate of return earned on a security. Yield is a


function of a security's purchase price and coupon interest rate.
A line tracing relative yields on a type of security over a spectrum of
maturities ranging from three months to 30 years.
A yield on a security calculated by assuming that interest payments will
be paid until the call date, when the security will be redeemed at the call
price.
A yield based on the assumption that the security remains outstanding to
maturity. It represents the total of coupon payments until maturity, plus
interest on interest, and whatever gain or loss is realized from the
security at maturity.
A bond where no periodic interest payments are made. The investor
receives one payment, which includes principal and interest, at
redemption (call or maturity).