Chapter 1

  1. Cash Reserve
    Short term money market instrument. Offers modest income with stability of principal.
  2. Treasury Bill
    Treasury obligation with maturities of one year or less.
  3. Bond
    Interest bearing debt obligation.
  4. Treasury Note
    Treasury obligation with maturities of more than 2 years but less than 10 years.
  5. Treasury Bond
    Treasury obligation with maturities of 10 to 30 years.
  6. Common Stock
    A proportionate ownership stake in a corporation.
  7. Defined Benefit Retirement Plan
    Employer funded retirement program in which the employer promises to pay the employee a fixed retirement income that depends on salary history and time employed.
  8. Defined Contribution Retirement Plan
    Employee funded retirement program in which employees direct and contribute to their own retirement plans. Retirement income depends on employee success in investing.
  9. Portfolio
    Diversified collection of stocks, bonds, and other assets.
  10. Risk
    Chance of a loss of wealth or a failure to meet investment goals.
  11. Efficient Market Hypothesis
    Idea that every security is correctly priced, not overvalued or undervalued.
  12. Return on Equity
    Accounting net income divided by stockholders equity, or book value per share.
  13. Regression to the Mean
    Tendency of profit rates to return toward long-term industry and economy-wide averages.
  14. Price-Earnings(P/E) Ratio
    Stock price divided by earnings per share.
  15. Incentive
    Financial reason for inciting an action.
  16. Investor Psychology
    The reasons, emotions, and perceptions of the human brain as they pertain to investments.
  17. Stock Quote
    Offer to buy and sell shares to specific prices.
  18. Real Time
    Up to the minute, current stock quote.
  19. EDGAR
    Electronic Retrieval Analysis System for SEC filings.
  20. Ticker Sysmbol
    Unique one - two - three or four letter code for any company.
  21. 10Q Report
    Quarterly accounting information filed with the SEC.
  22. 10K Report
    Annual accounting information filed with the SEC.
  23. Proxy Statement
    Annual meeting announcement and shareholder voting information.
  24. 13D
    Filings made to the SEC within 10 days of an entity's attaining a 5 percent or more position in any class of a company's securities.
  25. Form 144
    Filings submitted to the SEC by holders of restricted stock who intend to sell shares.
  26. Stockbroker
    Financial agent who assists investors with buying and selling financial assets.
  27. Churning
    Illegal broker initiated trading in client accounts to generate commission income.
  28. Security Analyst
    Finance professional who analyzes and makes recommendations regarding stocks and other financial assets.
  29. Portfolio Manager
    Finance professional in charge of making buy, sell, and hold decisions for a portfolio.
  30. Chartered Financial Analyst (CFA)
    Professional designation for investment management, banking and financial analyst.
  31. Certified Financial Planner (CFP)
    Finance professional who helps individuals identify and meeting financial needs.
  32. Investment Banker
    Finance professional who helps companies and government organizations acquire capital through the issuance of financial assets.
Card Set
Chapter 1
Chapter 1