A-D

AAA- The highest rating given on bonds by bond rating agencies

Abonormal Return- When the return on an asset or security is above the rate of expected return

Account- a statement of indebtness for goods or services by one person to another.

2. An account mainted by a bank to preserve a depositer's money or securities.

Account balnace-the net of debits and credits for an account at the end of a reporting period.

Adjustible Rate Mortgage-a mortgage that allows adjustment of the loan interest rate at pre-specified intervals.

Annual Percentage Rate-the one year rate that is charge for borrowing. By law, credit card companies and loan issuers must show the APR.

Annual Report-A corporations annual statement of financial operation. The annual report includes income statements, balance sheet, auditor's report and a description of the companies operation.

Annuity-A series of fixed amount payments paid at regular intervals over the specified term of the annuity.

Ask-the price at which a person is willing to accept for a security. Also called the offer price.

Asset-anything that a company of individual owns that has economic value to its owner.

Baby bond-a bond with a par value less than $1,000

Balance Sheet-a financial statement. It reports the company's assets, liabilities, and net worth at a specified time.

Bankruptcy-the state of a person or firm unable to repay its debts.

Bear Market-a market condition in which prices of securities are falling or expected to fall.

Bid-an offer made by an investor, trader, or dealer to buy a security.

Bid price-the price at which a buyer is willing to buy a security

Blue Chip Stock-stock of a well established company that has demonstrated its ability to pay divideds in good times and bad.

Board of Directors-a group of individuals who are elected by stockholders to establis corporate management policies and make decisions on major company issues such as dividend policies.

Boiler room-a telemarketing firm using high pressured sales tatics.

Bond-a debt investment, with which the investor loans money to an entity that borrows the money for a specified period of time at a specified interest rate.

Bond Fund-a mutual fund that invests in bonds.

Book Value-the value at which an asset is carried on a company's balnce sheet.

Broker-a individual or firm that charges a fee or commission for executing buy and sell orders for investors.

Budget-an estimation of revenue and expenses over a period of time.

Capital-financial assets or the financial value of assets such as cash.

Capital Gain-an increase in the value of a capital asset that gives it a higher value than the purchase price. The gain is not realized until the asset is sold.

Capital markets-the market where capital products are bought and sold, such as stocks and bonds.

Cash Dividend-money paid to stockholders out of a corporation's earnings or accrued profits.

Caveat Emptor-let the buyer beware.

Certificate of deposit CD-a saving certificate entitling the bearer to receive interest.

Common Stock-a security that represents ownership in a corporation.

Credit-a contractual agreement where a buyer receives something of value you now; with the promise to pay in the future.

Debt-amount of money owed from one to another

Demand-a consumer's willingness to pay for a good or service.

Dividend-a cash payment from profits.