Glossary
A
Annual Report: It is an annual financial condition statement of the organization which includes income statement items, and balance sheet. It could also contain detailed synopsis of the organizational highlights.
Annuity: It is an insurance which is available in fixed or variable form.
APR: It is the annual percentage of interest rate.
APY: It is the annual Percentage of interest yield.
Assets: It is referred to the property which is owned by the organization or person typically viewed in 3 categories such as fixed term, long term and intangible.
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B
Baby Bonds: The bonds which has denominations of less than $1,000.
Back-End Load: These are the charges imposed on liquidation or redemption of an investment status. They are called back end because they occur at the end of the investment process.
Bond Funds: These are mutual funds which are invested in credit instruments.
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C
Constant Maturity: It is a devise which fixes the expiration time for the bond derivatives.
Constant Maturity Treasuries (CMT): It is the security which is fixed to an index that represents the interest rate for a constant treasury maturity.
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D
DK: Don't Know.
DNR: Do Not Reduce.
Dollar Cost Averaging: It is the practice of buying the securities with periodic intervals with a fix dollar amount regardless of the market condition.
Dollar Price: It is the value of the bond which is expressed as a par, face or principle percentage.
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I
IPO: Initial Public Offering.
IPO Date: It is the date on which the security started to trade publicly.
IRA: It is the Individual Retirement Account which provides a tax-benefit investment vehicle for investors to save for their retirement.
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N
NASDAQ: It is the National Association for Securities Dealers and Automated Quote system which links dealers and brokers in a unified quotation price system.
It has 3 levels:
Level I - displays highest bid and lowest offers.
Level II – It displays market makers quotes.
Level III – It grants the permit for the entry and revision of the market makers quotes.
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P
Paper Profit: It is an unrealized gain which is calculated while trading commodities and future options.
Profit and Loss Statement: It is a report which depicts the profitability of traders, client and the firm.
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R
Real Estate Investment Trust: It is a structure which holds properties such as shopping malls, apartments, office buildings or other real estates.
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T
Terminal Value: It is the discounted or non discounted financial value for the investment.
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U
Unsecured: It is a credit instrument with a low priority claim against the borrower.
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Y
Yield Curve: It describes the interest rate across various maturities.
Yield to Maturity: It is the return rate which is measured by the expected current income.