金融词典(特实用).pdf

Finance Dictionary xujinchi A Account A collection of investments either taxable or tax deferred Account can be real contains investments actually owned or model hypothetical Account type can be brokerage mutual fund or other a mutual fund can be an account if the fund is purchased directly from fund company or it can be an investment within an account if purchased through a broker Legally accounts are set up as taxable or tax deferred The legal owner of an account can be an individual joint corporate custodian estate or trust See Real Taxable Accounts Joint Accounts and Real Tax Deferred Accounts Account Description Information that includes Account Type Tax deferred Tax Method and Account Note These items are primarily used to classify accounts for tax purposes Account Note Descriptive text about an account that you can enter for your information such as for College Account Type When placing an order through this site you must be sure to select the proper Account Type for the position you wish to trade If a particular position resides in your cash account for example this site will automatically reject a sell order that specifies your margin account and vice versa Accrual Method Accounting method where income and expenses are recorded when items are booked or billed Contrast with a more common method cash method where income and expenses are logged from the time cash is actually spent or received Accrued Interest Interest earned but not yet paid For most taxpayers tax is due in year accrued interest is paid When buying a bond buyer pays seller any interest accrued since the last payment date When the buyer eventually sells the bond the new buyer pays any accrued interest The accrued interest is subject to taxes for the seller but reduces the tax liability for the buyer For example if a bond buyer paid 30 accrued interest to a seller then received 150 interest for the rest of the year the buyer needs to pay taxes on 150 30 120 ADR ADS Stands for American Depository Receipts or Shares These financial instruments allow stock in a foreign corporation to be traded on a U S stock exchange in U S currency by representing the actual shares from the native exchange Advances Declines Advances are the number of issues on the New York Stock Exchange that have risen in price since the previous trading day s closing price Declines represent those that have fallen in price Sometimes the advances and declines are expressed as a ratio and plotted as a line graph A rising A D line indicates that the market has good breadth a majority of issues are rising in price and that a rising trend is more likely to be sustainable Finance Dictionary xujinchi After Tax Real Rate of Return The percentage gain on an investment account or portfolio after taxes and inflation have been deducted Note that the after tax real rate of return for money market mutual funds is frequently less than zero so you should use these accounts only as temporary cash accounts All or None Order In brokerage order instruction particularly for large orders to execute the total quantity or none American Style Option American style is an option contract that can be exercised at any time between the date of purchase and the expiration date Most exchange traded options are American style All stock options are American style Annual Report Written report to shareholders summarizing the past fiscal year s financial results and news items of importance about products law suits board members etc Prospective shareholders should also review the annual report because it provides important balance sheet information Annualized Return Projects the year to date return over a full 12 month calendar year Most useful for projecting return for money market funds CDs and bonds Annualized return for equities can be misleading if YTD return is high and covers a short period of time See Total Return Annuity An insurance product that pays an income benefit on a specific date for a specific time or for the lifetime of the person s receiving the annuity the annuitant A fixed annuity guarantees fixed payments with a constant rate of return A variable annuity s value fluctuates with that of the assets that are backing it There is no guaranteed rate of return for a variable annuity the annuitant bears the investment risk and receives the return actually earned on invested assets less charges assessed by the insurance company Arbitrage A financial transaction where an arbitrageur arb simultaneously purchases in one market and sells in another where there is a slight price differential Often it is a full hedge and therefore a risk free transaction Arbs play an important role in keeping markets liquid and efficient Assigned on an Option Transaction When you sell an option you now have the obligation to sell or purchase stock You have or may not have to fulfill that obligation You are considered to be assigned if you are being required to fulfill that obligation Typically this occurs when the option is in the money Ask The lowest price at which a seller is willing to offer a security at this time Asset Something of value that you own Appreciating assets such as stocks have the potential of increasing in Finance Dictionary xujinchi value and or producing income Depreciating assets such as a car lose value over time Assets minus liabilities what you owe equals net worth Asset Allocation The process of deciding what kinds of assets you want to own and the percentage of each Tactical asset allocation is a sophisticated form of market timing in which an investor decides how much to allocate to each asset class based on market indicators particularly interest rates As conditions change the percent allotted to each asset class changes Asset Classes Appreciating assets are put into 7 asset classes maximum capital gain equity long term equity international equity U S government bond corporate bond precious metals and cash At The Money Option When the price of the underlying security is equal to the strike price an option is at the money Average Annual Return The cumulative return divided by the number of years of the life of the investment or account with the compounding effect factored in In reverse the average annual return times a given number of years equals the cumulative return for that time frame AAR is used to compare returns of two or more investments of unequal track records Average Daily Volume The consolidated trading volume for all exchanges averaged for the last 20 trading days Average Cost The average price plus commission Average Price The total cost less total commission of all lots you own of a particular security divided by the total number of shares owned Average Proceed The sum of net amounts received from all short open lots divided by the total number of shares short for that security Average proceeds is for short investments what average cost is for long investments B Baby Bond One sold at face amount less than 1 000 to make it attractive to smaller investors See Bond Balance Sheet A listing of all assets and liabilities for an individual or a business The surplus of assets over liabilities is the net worth or what is owned free of debt Finance Dictionary xujinchi Balance Sheet Return A view in the stock database that displays Sales Price Ratio Price Book Ratio Book Share Return on Equity Profit Margin and Reporting Date These items are all measures of company value and profitability Balance Sheet Cash positive values means the mutual fund has appreciated in price Note A way to calculate previous day s closing price is to subtract the Change from the Current Price add negative values Class A Class B Shares Shares of stock issued by the same company but having some difference such as voting rights or a dividend preference or participation Clearinghouse A computerized facility that compares and reconciles both sides of a brokerage trade Closed to New Accounts The mutual fund is currently closed to new investors To be sure call the mutual fund for the latest information Closing Commission The commission deducted from the proceeds before calculating realized gain or loss It is the fee charged by your broker to execute your trade It may be a composite of several fees publisher Finance Dictionary xujinchi of The Wall Street Journal Barron s National Business and Financial Weekly and other influential publications Dow Jones Industrial Average DJIA The most commonly followed index of the U S stock market It is comprised of 30 corporations spanning many different industries It is price weighted meaning that a 2 change in a 100 per share stock will have a greater affect than a 2 change in a 20 per share stock The Dow Jones Industrial Average measures also defined in the glossary can be used to gauge the health and direction of the stock market see DJIA 200 Day Moving Average DJIA Price Earnings DJIA Yield DJIA Price Book DJIA 200 Day Moving Average This value is calculated by averaging all the closing values of the DJIA for the last 200 days You can use this and the following measures to create market timing alerts DJIA P E Price Earnings The latest DJIA value divided by the estimated current year earnings per share EPS with the index multiplier taken into account Readings above 24 and below 8 are considered sell and buy signals respectively by many analysts DJIA Yield The sum of all dividends of all stocks in the DJIA divided by the latest value of the DJIA adjusted by the multiplier Readings below 3 and above 6 are considered sell and buy signals respectively DJIA Price Book The latest value of the DJIA divided by the book value for all DJIA stocks adjusted by the multiplier Readings above 2 5 may be a sell signal Dow Jones Transportation Average DJTA A index of 20 corporations in the transportation sector including air rail and truck Dow Jones Utilities Average DJUA An index of 15 major utility corporations Duration of an order In brokerage when trading stocks or options it designates whether a limit trade is valid for Good Until Canceled or Day Only Market orders all have a duration of Day Only by definition since they are executed as soon as possible at the market price It is possible that a market order could arrive after the market close in which case it may remain valid at the next market opening DVP RVP Account If you have not taken special steps to establish a DVP RVP account with us you must not select this account type DVP RVP accounts relate mainly to institutional trading accounts E Earnings Per Share Finance Dictionary xujinchi The fiscal year earnings divided by common shares outstanding for any given year for a given corporation The estimated current fiscal year earnings per share includes the actual EPS for quarters that have already been reported plus estimates calculated by the S AMEX American Stock Exchange and OTC Over the Counter The OTC unlike the other two does not have a physical location It is a network of security dealers most of whom are connected by a computer link called NASDAQ National Association of Securities Dealers Automated Quotation System OTC stocks are found under the NASDAQ listings of your newspaper Exchange Call NYSE requires a margin account to maintain 25 equity Equity consists of funds and margin eligible securities in a margin account When the market value of margined securities is less than the minimum equity a margin call goes out to the client requesting additional equity i e securities or cash Exchange calls are due immediately Ex Dividend When a stock trades ex dividend without dividend it means that a new buyer of the security will pay the price with the dividend deducted Also the new buyer will not have a tax liability for that dividend as does the buyer who bought on or before the record date the official date declared by the board of directors to determine who is eligible for the dividend The actual payment date of the dividend may be a couple of weeks after the record date If a stock pays a large dividend you should try to make a purchase after the record date so to avoid the tax liability on the dividend Executed Order Completed buy or sell transactions Finance Dictionary xujinchi Exercised on an Option Transaction When you buy an option you have the right to either purchase or sell stock at a predetermined price When and if you choose to purchase or sell stock at that predetermined price you are said to be exercising your right Exit Fee A service charge that equals a percent of a share s NAV which you pay when you sell your mutual fund shares Sometimes the exit fee is a flat dollar charge Expiration Date of an Option The last day in the case of American style or the only day in the case of European style on which an option may be exercised For stock options this date is the Saturday immediately following the third Friday of the expiration month however brokerage firms may set an earlier deadline for notification of an option buyer s intention to exercise If Friday is a holiday the last trading day will be the preceding Thursday Extended Hours Trading An extended trading session on a matched order basis for NYSE and AMEX Lasting from 4 15 p m to 5 00 p m EST it uses the closing price of a security at the conclusion of the regular trading day to determine the transaction price of the matched orders Only securities listed on NYSE and AMEX are eligible for the extended session F Face Value The stated value of a bond certificate when issued and when they are redeemed at maturity Same as par value or principal The face value never changes but the current value does Current value for a bond is face value x price divided by 100 Bonds are purchased as units of face value For example you buy a 10 000 bond where the current value can be more or less than 10 000 depending on market conditions Federal Call When a client makes certain types of transactions in their margin account the brokerage firm will issue a call notifying the client if additional equity is required by the settlement date in order to satisfy Federal Regulation T Fees however if the value of the CD plus interest held in the account exceeds 100 000 this excess is not insured by the FDIC To be safe you can hold several jumbo CDs at different banks Junior Security A security with a lower claim on assets in the event of a company s liquidation Normally common stock is most junior to all other corporate issues Then from junior to senior the order is preferred stock debentures and mortgage bonds This last item is a direct claim on real property and is the most senior Junk Bond A junk bond or high yield bond is one with a S i e a year or more Long term growth securities tend to be more stable and appreciate at a slower albeit steadier rate than do maximum capital gains securities Lot A group of identical UNITS for securities or nearly identical units for collectibles of an investment that are traded at the same time and price Open lots are the contents of open investments and can be long buys or short short sell Closed lots are the contents of closed investments and can be long sell or short buy to cover M Maintenance Requirement The level of equity that must be maintained in a client s margin account When the market value of a margined security is less than maintenance levels a margin call is issued for the investor to increase equity Margin Account An investment account which allows you to purchase securities with funds borrowed from the broker at a specified interest rate Margin Balance A debit in your account secured with stocks and or bonds which regulators have authorized for use as collateral Margin Call A firm s demand of a client for additional equity in order to meet maintenance requirements If a client fails to deliver more equity in the account positions in the account may be liquidated There are three types of margin calls House Exchange and Federal See House Call Exchange Call Federal Call Margin Debt A debit in your account that is owed to the broker The debit is secured with stocks and bonds which regulators have authorized for use as collateral It excludes funds due which are debits resulting from purchases in a cash account Margin Loan Availability The amount of money you may withdraw from your account using margin eligible securities in your margin account as collateral Finance Dictionary xujinchi Marginal Tax Rate The combined federal state and local tax rate applied to the next additional dollar of income For example if your federal tax bracket is 28 and your state tax rate is 5 when you earn another dollar of income it would be taxed at a 33 tax rate Mark to Market Determination of securities value within a margin account to ensure that the account is in compliance with maintenance requirements Market Order An order to buy or sell a security at the next available price Market Timing Attempting to buy and sell securities to ride up trends and avoid down trends in the stock bond currency or commodity markets In theory this can dramatically increase your rate of return but practically it is extremely difficult or impossible to consistently make the right decisions at the right time over the long term Market Value The number of outstanding common shares of a given corporation times latest price per share It is also referred to as market capitalization Note ADRs and ADSs do not display Market Value Maturity The date a given bond will mature and pay off its principal in full A bond issued for 1 000 will pay off the 1 000 at maturity A single company can issue more than one series of bonds These bond series can be differentiated by their maturities Maximum Capital Gains The attempt to maximize the positive difference between the buying and selling price of a security Maximum capital gains securities are typically more risky or volatile than the average S fund managers usually need to keep about 5 cash just to meet daily redemption requirements This indicator is usually considered a contrary indicator as fund mana