| The ever increasing number of investment
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| | of gold by dealers (especially in a twice
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| products and financial services in the
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| | daily London meeting at the central
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| marketplace today can be confusing. We
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| | bank); the fix is the fundamental
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| have put together this glossary of
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| | worldwide price for setting prices of
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| financial definitions designed to help
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| | gold bullion and gold-related contracts
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| you understand some of the more common
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| | and products.Good Delivery - Certain
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| investment and financial terms you may
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| | basic qualifications must be met before a
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| encounter. Your financial advisor can
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| | security sold on the Exchange may be
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| explain these terms more completely and
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| | delivered. The security must be in proper
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| discuss with you those which are relevant
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| | form to comply with the contract of sale
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| to your situation.Face Value - The value
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| | and to transfer title to the
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| of a bond that appears on the face of the
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| | purchaser.Good 'Til Canceled (GTC) or
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| bond, unless the value is otherwise
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| | Open Order - An order to buy or sell that
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| specified by the issuing company. Face
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| | remains in effect until it is either
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| value is ordinarily the amount the
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| | executed or canceled.Government Bonds -
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| issuing company promises to pay at
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| | Obligations of the U.S. Government,
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| maturity. Face value is not an indication
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| | regarded as the highest-grade securities
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| of market value. Sometimes referred to as
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| | issues.Growth Stock - Stock of a company
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| par value.Financial Futures - Futures
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| | with a record of growth in earnings at a
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| contracts based on financial instruments
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| | relatively rapid rate.Hedging - The
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| such as U.S. Treasury bonds, CDs and
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| | purchase or sale of a derivative security
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| other interest-sensitive issues,
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| | (such as options or futures) in order to
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| currencies and stock market
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| | reduce or neutralize all or some portion
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| indicators.Fiscal Year - A corporation's
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| | of the risk of holding another
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| accounting year. Due to the nature of
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| | security.Holding Company - A Corporation
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| their particular business, some companies
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| | that owns the securities of another, in
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| do not use the calendar year for their
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| | most cases with voting
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| bookkeeping. A typical example is the
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| | control.Hypothecation - The pledging of
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| department store that finds December 31
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| | securities as collateral - for example,
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| too early a date to close its books after
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| | to secure the debit balance in a margin
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| the Christmas rush. For that reason many
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| | account.Income Bond - Generally income
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| stores wind up their accounting year
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| | bonds promise to repay principal but to
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| January 31. Their fiscal year, therefore,
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| | pay interest only when earned. In some
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| runs from February 1 of one year through
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| | cases unpaid interest on an income bond
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| January 31 of the next. The fiscal year
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| | may accumulate as a claim against the
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| of other companies may run from July 1
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| | corporation when the bond becomes due. An
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| through the following June 30. Most
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| | income bond may also be issued in lieu of
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| companies, though, operate on a calendar
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| | preferred stock.Indenture - A written
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| year basis.Fixed Charges - A company's
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| | agreement under which bonds and
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| fixed expenses, such as bond interest,
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| | debentures are issued, setting forth
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| which it has agreed to pay whether or not
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| | maturity date, interest rate, and other
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| earned, and which are deducted from
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| | terms.Index - A statistical yardstick
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| income before earnings on equity capital
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| | expressed in terms of percentages of a
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| are computed.Flat Income Bond - This term
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| | base year or years. For instance, the
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| means that the price at which a bond is
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| | NYSE Composite Index of all NYSE common
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| traded includes consideration for all
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| | stocks is based on 1965 as 50. An index
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| unpaid accruals of interest. Bonds that
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| | is not an average.Institutional Investor
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| are in default of interest or principal
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| | - An organization whose primary purpose
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| are traded flat. Income bonds that pay
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| | is to invest its own assets or those held
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| interest only to the extent earned are
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| | in trust by it for others. Includes
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| usually traded flat. All other bonds are
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| | pension funds, investment companies,
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| usually dealt in "and interest," which
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| | insurance companies, universities and
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| means that the buyer pays to the seller
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| | banks.Interest - Payments borrowers pay
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| the market price plus interest accrued
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| | lenders for the use of their money. A
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| since the last payment date.Floor - The
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| | Corporation pays interest on its bonds to
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| huge trading area - about the size of a
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| | its bondholders.Interrogation Device - A
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| football field - where stocks, bonds and
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| | computer terminal that provides market
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| options are bought and sold on the New
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| | information - last sale price, quotes,
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| York Stock Exchange.Floor Broker - A
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| | volume, etc. - on a screen or paper
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| member of the Stock Exchange who executes
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| | tape.Intrinsic Value - The dollar amount
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| orders on the floor of the Exchange to
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| | of the difference between the exercise
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| buy or sell any listed securities.Formula
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| | price of an option and the current cash
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| Investing - An investment technique. One
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| | value of the underlying security.
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| formula calls for the shifting of funds
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| | Intrinsic value and time value are the
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| from common shares to preferred shares or
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| | two components of an option premium, or
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| bonds as a selected market indicator
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| | price.Investment - The use of money for
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| rises above a certain predetermined point
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| | the purpose of making more money, to gain
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| - and the return of funds to common share
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| | income or increase capital, or
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| investments as the market average
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| | both.Investment Banker - Also known as an
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| declines.Free and Open Market - A market
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| | underwriter. The "middleman" between the
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| in which supply and demand are freely
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| | corporation issuing new securities and
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| expressed in terms of price. Contrasts
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| | the public. The usual practice is for one
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| with a controlled market in which supply,
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| | or more investment bankers to buy
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| demand and price may all be
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| | outright from a corporation a new issue
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| regulated.Fundamental Research - Analysis
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| | of stocks or bonds. The group forms a
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| of industries and companies based on such
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| | syndicate to sell the securities to
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| factors as sales, assets, earnings,
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| | individuals and institutions. Investment
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| products or services, markets and
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| | bankers also distribute very large blocks
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| management. As applied to the economy,
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| | of stocks or bonds - perhaps held by an
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| fundamental research includes
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| | estate.Investment Company - A Company or
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| consideration of gross national product,
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| | trust that uses its capital to invest in
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| interest rates, unemployment,
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| | other companies. There are two principal
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| inventories, savings, etc.Funded Debt -
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| | types: the closed-end and the open-end or
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| Usually interest-bearing bonds or
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| | mutual fund. Shares in closed-end
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| debentures of a company. Could include
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| | investment companies, some of which are
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| long-term bank loans. Does not include
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| | listed on the New York Stock Exchange,
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| short-term loans, preferred or common
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| | are readily transferable in the open
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| stock.Futures - Exchange traded contracts
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| | market and are bought and sold like other
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| specifying a future date of delivery or
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| | shares. Capitalization of these companies
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| receipt of a certain amount of a specific
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| | remains the same unless action is taken
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| tangible or intangible product. The
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| | to change, which is seldom. Open-end
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| commodities traded in futures markets
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| | funds sell their own shares to investors,
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| include stock index futures, agricultural
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| | stand ready to buy back their old shares,
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| products like wheat, soybeans and pork
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| | and are not listed. Open-end funds are so
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| bellies; metals; and financial
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| | called because their capitalization is
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| instruments. Futures are used by business
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| | not fixed; they issue more shares as
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| as a hedge against unfavorable price
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| | people want them.Investment Counsel - One
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| changes, and by speculators who hope to
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| | whose principal business consists of
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| profit from such changes.General Mortgage
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| | acting as investment adviser and
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| Bond - A bond that is secured by a
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| | rendering investment supervisory
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| blanket mortgage on the company's
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| | services.IRA - Individual Retirement
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| property but may be outranked by one or
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| | Account. A pension plan with tax
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| more other mortgages.Gilt-Edged -
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| | advantages. IRA permits investment
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| High-grade bond issued by a company that
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| | through intermediaries like mutual funds,
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| has demonstrated its ability to earn a
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| | insurance companies and banks or directly
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| comfortable profit over a period of years
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| | in stocks and bonds through
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| and pay its bondholders their interest
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| | stockbrokers.Issue - Any of a company's
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| without interruption.Give-Up - A term
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| | securities, or the act of distributing
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| with many different meanings. For one, a
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| | such securities.Keogh Plan - Tax
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| member of the Exchange on the floor may
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| | advantaged personal retirement program
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| act for a second member by executing an
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| | that can be established by a
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| order for him or her with a third member.
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| | self-employed individual.More financial
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| The first member tells the third member
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| | definitions can be found by visiting
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| that he or she is acting on behalf of the
| |
| | SorensenAmerica's Financial Guide can be
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| second member and "gives up" the second
| |
| | found at ==> Subscribe to Money Basics
|
| member's name rather than his or her
| |
| | via - Are you ready for financial
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| own.Gold Fix - The setting of the price
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| | freedom?
|
