Professional Documents
Culture Documents
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
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 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
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
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
High-yield bond
Holding Company
Hostile Takeover
IFCG
Index
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
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
Volatility
Window Dressing
Yield
Yield curve
Yield to call
Yield to maturity
Zero-coupon bond