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Файл:Английский для экономистов. Учебное пособие
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Cash Balance
Whenever a transaction occurs that affects cash, the cash balance is debited or
credited. The cash balance is usually invested in a money market mutual fund that
pays interest. Money market funds can be taxable or tax-exempt. In brokerage
accounts, the balance in cash is swept into the money market daily.
Cash Flow
Net income plus depreciation and other non-cash charges. A strong cash flow is
important for covering interest payments, particularly for highly leveraged
companies.
Cash Market
A market in which security or commodity transactions occur within a few days of
the trade date. Also called the spot market. The opposite is the futures market,
where transactions are completed at a specified future date, price, and quantity,
which is determined in the present. Stock, bond, and mutual funds trade in the cash
market.
Cash/Share
The amount of cash divided by total number of common stock shares outstanding
for a given stock. A corporation with a high cash/share amount relative to the
current price per share is said to be "cash rich" and may be considered low risk or
undervalued.
CD Rate
The current interest rate for a given CD (certificate of deposit).
Certificate of Deposit
Investment created by banks, which pays stated interest at either fixed or variable
rates. If sold directly by banks, principal is returned at maturity subject only to
penalties for early cashing in. If sold through brokers (called Broker CDs),
principal value can vary like with bonds, and early cashing in can fetch a principal
lower than amount paid.
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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 & charges.
Closing Price
The market price you receive when you sell or buy-to-cover your security.
Commercial Paper
Unsecured short-term debt, usually from 2 to 270 days, issued by banks and
corporations, which is generally safe and flexible. It is usually a major component
of money market fund investment portfolios.
Commission
Fee charged by broker to execute your trade. May be a composite of several fees &
charges. Commission is taken into account when calculating realized gain or loss.
The buy, or opening commission, is added to the cost basis and the sell, or closing
commission, is deducted from the proceeds before calculating realized gain or loss,
therefore commissions reduce taxable gains and increase losses. Total commission
is the sum of both buy and sell commission. Commission rates take into account
the quantity of the purchase, the unit price of the security (low priced stocks may
have higher commission rates), and the type of investment (options have higher
commissions).
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Common Shares
Represents the total number of common shares outstanding, excluding treasury
stock (stock issued but re-acquired by the company through buy-backs). This
number is expressed in thousands, so add three zeros.
Contract Size of an Equity Option
The amount of the underlying asset covered by the options contract. This is 100
shares for one option unless adjusted for a special event, such as a stock split or a
stock dividend.
Conversion Price
The price at which convertible securities, such as bonds and preferred stock, can be
converted into common stock at a set conversion ratio. For example, if the
conversion ratio is 25 to 1, and you own a $1000 face value convertible bond, then
the conversion price is $40 per share. The conversion value is the value of 25
shares at the current price per share. If you assume $32 per share, then the current
value is 25 x $32 = $800. In this example, it is clearly better not to convert.
Convertible Bond
A debt security that is exchangeable for a set number of shares of another type of
security, usually common stock, at a predetermined price.
Corporate Bond
A debt security investment in obligations of U.S. corporations. Corporate bonds
are taxable and have a specific maturity date. They are often traded on major
exchanges.
Covered Calls
A covered call seller or writer is an investor who owns a stock and sells a call
option against it to generate additional income, which comes from the premium
received for selling the option. If things work out right for the writer, the stock
price will stay below the strike price and the writer will retain both the premium
and the stock. However, if the stock price rises enough, the stock will be called
away by the call buyer who has exercised the option and now gets the stock and
pays the writer the strike price . Whether the writer makes a profit or loss on the
stock that is called away depends on the purchase price (the cost basis).
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Credit Balance
For cash accounts, it is the uninvested money in your account. In a margin account,
it is the money on deposit against a short position.
Cumulative Return (1-Yr, 3-Yr, 5-Yr, 10-Yr)
The price change over the time period shown, plus any dividend, interest, or capital
gains paid and reinvested over the period shown for any given security. Note that
for stocks, the periods are complete calendar years, but for mutual funds, periods
are rolling up to the current month.
Cumulative Return (12-Month, 10-Year)
Measures the price change over the period of time indicated, ending at the current
date (or the date the price was last updated). This measure includes any dividends
paid and reinvested during the period measured. Cumulative return can also be
referred to as total return. It is the most useful measure of performance among
different asset classes, such as stocks, bonds, cash, and so forth.
Cumulative Return Through (Year)
Includes the price change over the period of years indicated, ending at the year
shown, plus any dividend paid and reinvested over the period shown. The bar
graph represents the total value of your portfolio.
Current P/E Ratio
The ratio of current price divided by last two quarters earnings per share (EPS)
plus next two estimated quarters EPS. See Price/Earnings Ratio.
Current Year High & Low Prices
The highest and lowest price for a given bond during the current calendar year.
Current Yield
For a stock, the annual dividend divided by the current price per share. For a bond,
the annual interest payment divided by [current price divided by 100 times
quantity]. A measure in percentage terms of how much income you can derive
from the security. Of great importance to fixed income investors and of minimal
importance to growth investors.
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CUSIP Number
An industry code which uniquely identifies nearly all traded stocks and bonds.
Date of Record
Date on which a shareholder must own shares to be entitled to a dividend payment.
From the following day, until the day the dividend is actually paid, the stock trades
ex-dividend.
Debenture
A bond issued by a corporation which is secured by the general credit or promise
to pay of the issuer. It is not backed by collateral such as tangible assets.
Debit Balance
Money owed by the client to the broker.
Debt Securities
Securities representing money borrowed by an issuer that must be paid back at a
specific date. The security pays interest or is purchased at a discount to face value.
Debt Service
Cash required by a corporation or municipality to cover all interest and principal
payments due in a given year, including sinking fund payments.
Debt/Equity Ratio
Long-term debt plus current liabilities divided by the last fiscal year net equity per
share of common stock for a given corporation. A ratio above 2:1 or 200% may be
excessive and a sign of strained corporate finances.
Discount Rate
The lending rate that the Federal Reserve Bank charges on loans made to other
banks and financial institutions. Changes in this rate tend to have large ripple
effects on the rates banks in turn charge their customers. The bond market and
sometimes the stock market react sharply to changes in this rate. You can create
market timing alerts with it.
Distributions
Capital gains (long or short term), interest, or dividends paid to bond holders and
shareholders. These can be received as cash or stock and they are treated as closed
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lots for tax purposes. Return of capital is also a type of distribution, but it is usually
tax exempt. Distributions from mutual fund shares are easily reinvested into more
shares and the compounding of reinvested shares can add substantially to the
cumulative return of a fund.
Dividend
The periodic, usually quarterly, payment made by a corporation to its shareholders,
generally expressed as dividend per share. Dividends represent earnings that are
not reinvested by the corporation. Some stocks pay no dividends and others, such
as utility companies pay substantial ones that represent a large portion of the total
return a shareholder will get from his investment. Dividends are a type of
distribution and are usually taxable in year received.
Dividend Frequency
Shows how often a given mutual fund pays a dividend distribution.
Dividend Growth Rate (3 Yr and Current Year)
The unweighted average annual growth rate of annual fiscal year dividends for the
last three fiscal years for a given security.
Dividend Year Started
The year in which a given corporation started paying dividends to stockholders.
Dividend/Share
Indicates the annual dividend payment for the next 12 months for a given security.
Most companies pay dividends quarterly.
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.
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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.
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.
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.
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.
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Earnings Per Share
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&P Corporation for any quarters remaining in the fiscal year.
Earnings are the principal force behind stock price appreciation.
Equity
The generic term for ownership interest in an asset. In real estate, it is often used to
describe the net of the current value and the mortgage balance. It is also used to
describe stock and mutual funds, that is, investments that issue ownership shares.
Equity Security
Instrument representing fractional ownership in a corporation. Stocks are equity
securities.
European-style Option
European-style is an option contract that can only be exercised on the expiration
date.
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.
Exchange
The principal exchange in which the stock is traded: NYSE = New York Stock
Exchange; 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
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(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.
Executed Order
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".
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.
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.
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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 & Charges
These items relate to the costs of owning mutual fund shares. This view displays: if
it is a Closed fund, Sales Charges, Exit Fee, Expense Ratio, 5-Year Fee, Phone
Switch options.
Fiscal Policy
A method where governments use taxes and budgeting to raise revenue for public
purposes. Another method is monetary policy, which seeks to influence the money
supply by raising or lowering interest rates and thereby changing credit demand.
Fiscal Year
Any continuous 12 months which is used by a business or government as its annual
accounting period. The U.S. government fiscal year ends on September 30. A
fiscal year is designated by the year it ends. For example, an April - March fiscal
year 1993 ended on March 31, 1993 and began on April 1, 1992.
Five-Year Fee
The total cost you might have to pay over 5 years for every $1,000 investment in a
given mutual fund. Five-year fee is the best over-all measure for comparing fund
costs if you intend to hold onto the fund for at least 5 years.
Flexible Equities
A mutual fund whose holdings can vary between a preponderance of stocks or
bonds, depending on market conditions. Flexible funds seek to take advantage of
changing market conditions.
Floating Rate
Rather than a fixed interest or coupon rate, some bonds and CDs have a floating
interest rate which is adjusted periodically to market conditions. It is also called
Variable Rate.
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