bobbrinker.com Investment Glossary
This glossary of investment and related terms
provides simple definitions of terms that you may need to know.
---------- Index ----------
A B C D
E F G H
I J K L
M N O P
Q R S T
U V W X
--- M ---
The use of borrowed money to purchase
securities (buying "on margin").
Number of common stock shares outstanding
times share price. Provides a measure of firm size.
An order placed with a broker to buy or
sell a security at whatever the price may be when the order is executed.
The volatility of a stock price relative to
the overall market or index as indicated by beta.
The effort to base investment decisions on the anticipated
direction of the market. If equities are expected to decline in
price, the market timer may elect to hold a percentage of the
portfolio in cash reserves or other fixed-income obligations.
Timing may be based on fundamental or technical conditions,
or a combination of these factors.
The length of time until the principal
amount of a bond must be repaid.
Mother Of All Buying Opportunities
Money Market Fund
A common trust fund or mutual fund that
aims to pay money market interest rates. This is accomplished by
investing in safe, highly liquid securities, including bank certificates
of deposit, commercial paper, U.S. government securities and repurchase
agreements. Money funds make these high interest securities available to
the average investor seeking immediate income and high investment safety
Money Purchase Pension Plan (MPPP):
A defined contribution plan in which
employer contributions are usually determined as a percentage of pay.
Forfeitures resulting from separation of service prior to full vesting
can be used to reduce the employer's contributions or be reallocated
among remaining employees.
An open-end investment company that buys
back or redeems its shares at current net asset value. Most mutual funds
continuously offer new shares to investors.
--- N ---
National Association of Securities Dealers
Automated Quotations System. This is a computerized system that provides
up-to-the-minute price quotations on about 5,000 of the more actively
traded over-the-counter stocks.
Net Asset Value (NAV)
The current market worth of a mutual fund
share. Calculated daily by taking the funds total assets securities,
cash and any accrued earnings deducting liabilities, and dividing the
remainder by the number of shares outstanding.
A pension plan that does not meet the
requirements for preferential tax treatment. This type of plan allows an
employer more flexibility and freedom with coverage requirements,
benefit structures, and financing methods.
--- O ---
A transaction involving fewer shares than
in a "round" lot, which for most stocks is 100 shares.
A communications network through which
trades of bonds, non-listed stocks, and other securities take place.
Trading activity is overseen by the National Association of Securities
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