ECONOMIC GLOSSARY

Accounts Payable	Amounts owing on open account to creditors for goods and services.Accounts Receivable Money owed to a business for merchandise or services sold on open account.
Accrual Basis	Accounting method whereby income and expense items are recognized as they are earned or incurred, even though they may not have been received or actually paid in cash.
Accrual Bonds	Bonds that do not make periodic interest payments, but instead accrue interest until the bond matures. Also known as zero-coupon bonds.
Accrued Interest	Interest that has accumulated between the most recent payment and the sale of a security, i.e. deemed to be earned on a security but not yet paid to the investor. At the time of the sale, the buyer pays the seller the security's price plus accrued interest
Acquisition	One company taking over controlling interest in another company.
Adjusted EPS	Adjusted Earnings per share
AFM	Amman Financial Market
After-tax Return	An investment's return after all income taxes have been deducted.
AGICO	Acronym for Arabian General Investment Corporation. The company has changed its name to SHUAA Capital psc in April 2001.
Alpha	Measure of risk-adjusted performance. An alpha is usually generated by regressing the security or mutual fund's excess return on benchmark index's excess return.
American Depository Receipt (ADR)	Receipt for the shares of a foreign-based corporation held in the vault of a U.S. bank and entitling the shareholder to all dividends and capital gains.
Amortization	Accounting procedure that gradually reduces the cost value of a limited life or intangible asset, such as goodwill, through periodic charges to income. Amortization also refers to the reduction of debt by regular-payments of interest and principal suffici
Annual Meeting	Once-a-year meeting when the managers of a company report to stockholders on the year's results, and the board of directors stands for election for the next year.
Annual Report	Yearly record of a corporation's financial condition that must be distributed to shareholders. Included in the report is a escription of the company's operations as well as its balance sheet and income statement.
Annuity	A long-term investment that provides tax-deferred growth and income at regular intervals for as long as you specify.
Arbitrage	Profiting from differences in price when the same security, currency, or commodity is traded on two or more markets.
Ask Price	The price at which a market maker is willing to sell a specified quantity of a particular security.
Asset	Anything having commercial or exchange value that is owned by a business, institution, or individual.
Asset Allocation	Apportioning of investment funds among categories of assets, such as cash equivalents, stocks, fixed-income investments, and such tangible assets as real estate, precious metals, and collectibles. Asset allocation affects both risk and return and is a cen
Assets Under Management	The value of the assets that a company manages, but does not own.
Authorized Shares	Maximum number of shares of any class a company may legally create under the terms of its articles of incorporation. Normally, a corporation provides for future increases in authorized stock by vote of the stockholders. The corporation is not required to
Bad Debt	Open account balance or loan receivable that has proven uncollectible and is written off.
Balance of Payments	System of recording all of a country's economic transactions with the rest of the world during a particular time period.
Balance of Trade	Net difference over a period of time between the value of a country's imports and exports of merchandise.
Balance Sheet	Financial report showing the status of a company's assets, liabilities, and owners' equity on a given day.
Balanced Fund	A fund that invests in both stocks and bonds whose objective is both growth and income.
Basis point	One one-hundredth of 1 percent. Yield differences among fixed-income securities are stated in basis points
Bear Market	Prolonged period of falling prices.
Bearer security	A security that has no identification as to owner. It is presumed to be owned by the person who holds it. Bearer securities are freely negotiable, since ownership can be quickly transferred from seller to buyer by delivery of the instrument. However, note
Beta	Coefficient measuring a stock's relative volatility. The beta is the covariance of a stock in relation to the rest of the stock market.
Beta	measure of the relative volatility of a stock or other security as compared to the volatility of the entire market (usually measured for a benchmark index). A beta above 1.0 shows greater volatility than the overall market, while betas below 1.0 are less v
Bid	The price at which a buyer will purchase a security.
Bid Price	The price at which a market-maker is willing to purchase a specified quantity of a particular security.
Blue Chip	Common stock of a nationally known company that has a long record of profit growth and dividend payment and a reputation for quality management, products, and services.
Board of Directors	Group of individuals elected, usually at an annual meeting, by the shareholders of a corporation and empowered to carry out certain tasks as spelled out in the corporation's charter.
Bond	Any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity.
Bond insurers and reinsurers	A partial list of bond insurers includes American Municipal Bond Assurance Corp. (AMBAC), ACA Financial Guaranty, Asset Guaranty Insurance Co., AXA Re Finance, Capital Guaranty Insurance Co., Capital Markets Assurance Corp. (CapMAC), Capital Reinsurance Co
Bond Ratings	An indicator of the creditworthiness of specific bond issues. These ratings are often interpreted as an indication of the likelihood of default on the part of the respective bond issuers. Bonds with the smallest default probability are rated AAA (or Aaa)
Bonus Issue	Also known as a capitalization or scrip issue. This is when a company issues free shares to a company's existing shareholders. No money changes hands and the share price falls pro rata. This is usually used as an exercise to make the shares more marketabl
Book-entry	A method of recording and transferring ownership of securities electronically, eliminating the need for physical certificates.
Bottom-Up Approach	An investment strategy that focuses on individual stocks, rather than general market trends. It assumes strong companies can perform well independent of the market environment.
Broker	Person who acts as an intermediary between a buyer and seller, usually charging a commission.
BSE	Bahrain Stock Exchange
Budget	Estimate of revenue and expenditure for a specified period.
Budget Deficit	Excess of spending over income for a government, corporation, or individual over a particular period of time.
Budget Surplus	Excess of income over spending for a government, corporation, or individual over a particular period of time.
BVPS	Book Value per share
Call Option	Right to buy shares of a particular stock or stock index at a predetermined price before a preset data, in exchange for a premium.
Call premium	A dollar amount, usually stated as a percent of the principal amount called, paid by the issuer as a "penalty" for the exercise of a call provision.
Callable bonds	Bonds which are redeemable by the issuer prior to the maturity date at a specified price at or above par.
Cap	The top interest rate that can be paid on a floating-rate security.
Capital Asset	Long-term asset that is not bought or sold in the normal course of business.
Capital Gain	Difference between an asset's purchase price and selling price, when the difference is positive.
Capital Markets	Markets where capital funds - debt and equity - are traded.
Capital Stock	Stock authorized by a company's charter. The number and value of issued shares are normally shown, together with the number of shares authorized, in the capital accounts section of the balance sheet.
Capitalization Rate	Rate of interest used to convert a series of future payments into a single present value.
Cash Cow	A business that generates a continuing flow of cash. Such a business usually has well-established brand names whose familiarity stimulates repeated buying of the products. Stocks that are cash cows have dependable dividends.
Cash Dividend	Cash payment to a corporation's shareholders, distributed from current earnings or accumulated profits.
Cash Equivalents	Instruments or investments of such high liquidity and safety that they are virtually as good as cash. Examples are Money Market Funds and Treasury Bills.
Closed-End Fund	Type of fund that has a fixed number of shares usually listed on a major stock exchange. Unlike open-end funds, closed-end funds do not stand ready to issue or redeem shares on a continuous basis.
Closed-end investment company	An investment company created with a fixed number of shares which are then traded as listed securities on a stock exchange. After the initial offering, existing shares can only be bought from existing shareholders.
CMO (Collateralized Mortgage Obligation)	A bond backed by a pool of mortgage pass-through securities or mortgage loans, which generally supports several classes of obligations.
Collar	Upper and lower limits (cap and floor, respectively) on the interest rate of a floating-rate security.
Common Stock	Units of ownership of a public corporation. Owners typically are entitled to vote on the selection of directors and other important matters as well as to receive dividends on their holdings. In the event that a corporation is liquidated, the claims of sec
Consolidated Financial Statement	Financial statement that brings together all assets, liabilities, and operating accounts of a parent company and its subsidiaries.
Controlling Interest	Ownership of more than 50% of a corporation's voting shares. A much smaller interest, owned individually or by a group in combination, can be controlling if the other shares are widely dispersed and not actively voted.
Convertibles	Corporate securities (usually preferred shares or bonds) that are exchangeable for a set number of another form (usually common shares) at a prestated price.
Corporation	A legal entity, separate and distinct from the persons who own it. It has three chief distinguishing features: limited liability (owners can lose only what they invest); easy transfer of ownership through the sale of shares; and continuity of existence.
Cost of Capital	Rate of return that a business could earn if it chose another investment with equivalent risk - in other words, the opportunity cost of the funds employed as the result of an investment decision. Cost of capital is also calculated using a weighted average
Countercyclical Stocks	Stocks that tend to rise in value when the economy is turning down or is in recession.
Coupon	This part of a bearer bond denotes the amount of interest due, and on what date and where payment will be made. Bearer coupons are presented to the issuer's designated paying agent for collection. With registered bonds, physical coupons don't exist. (See "
CSE	Casablanca Stock Exchange
Current Ratio	Current assets divided by current liabilities. The ratio shows a company's ability to pay its current obligations from current assets.
Current yield	The ratio of interest to the actual market price of the bond, stated as a percentage. For example, a bond with a current market price of $1,000 that pays $80 per year in interest would have a current yield of 8%.
CUSIP	The Committee on Uniform Security Identification Procedures, established under the auspices of the American Bankers Association to develop a uniform method of identifying securities. CUSIP numbers are unique nine-digit numbers assigned to each series of se
Custodian	Bank or other financial institution that keeps custody of stock certificates and other assets of a fund, individual, or corporate client.
Cyclical Stocks	Stocks that tend to rise quickly when the economy turns up and to fall quickly when the economy turns down.
Date of Record	Date on which a shareholder must officially own shares in order to be entitled to a dividend.
Dated date (or issue date)	The date of a bond issue from which the first owner of a bond is entitled to receive interest.
Debenture	Unsecured debt obligation, issued against the general credit of a corporation, rather than against a specific asset.
Default	Failure to pay principal or interest when due. Defaults can also occur for failure to meet nonpayment obligations, such as reporting requirements, or when a material problem occurs for the issuer, such as a bankruptcy.
Defensive Securities	Stocks and bonds that are more stable than average and provide a safe return on an investor's money. When the stock market is weak, defensive securities tend to decline less than the overall market.
Delisting	Removal of a company's security from an exchange because the firm did not abide by some regulation or the stock does not meet certain financial ratios or sales levels.
Depreciation	Amortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life.
Deregulation	Greatly reducing government regulation in order to allow freer markets to create a more efficient marketplace.
Derivative Instrument	A contract whose value is based on the performance of an underlying financial asset, index, or other investment.
Devaluation	Lowering of the value of a country's currency relative to gold and/or the currencies of other nations.
Discount	The amount by which the purchase price of a security is less than the principal amount, or par value.
Discount note	Short-term obligations issued at discount from face value, with maturities ranging from overnight to 360 days. They have no periodic interest payments; the investor receives the note's face value at maturity.
Discount rate	The rate the Federal Reserve charges on loans to member banks.
Div Yield	Dividend Yield
Diversification	Spreading of risk by putting assets in several categories of investments.
Dividend	1. A company's payment of profits to its stockholders. 2. A mutual fund's payment of profits to its shareholders. 3. A return of part of the premium on participating insurance to reflect the difference between the premium charged and the combination of ac
Dividend Payout Ratio	Percentage of earnings paid to shareholders in cash. In general, the higher the payout ratio, the more mature the company.
Dividend Yield	Annual percentage of return earned by an investor on a stock. The yield is determined by dividing the amount of the dividends per share by the current market price per share.
Dow Jones Industrial Average (DJIA)	A popular index in the United States used to measure and report value changes in representative US stock groupings. "The Dow" is a price-weighed average of 30 actively traded blue chip stocks primarily of industrial companies.
Duration	The weighted maturity of a fixed-income investment's cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.
DVPS	Dividend per share
Earnings Per Share (EPS)	Portion of a company's profit allocated to each outstanding share of common stock.
EFG	EFG-Hermes (Egypt)
Embedded option	A provision within a bond giving either the issuer or the bondholder an option to take some action against the other party. The most common embedded option is a call option, giving the issuer the right to call, or retire, the debt before the scheduled matu
EMNEX	Emirates Bank International UAE Equity Index
EPS	Earnings per Share
Equity Fund	A fund that invests primarily in stocks. Also known as a stock fund.
Eurobond	Bond denominated in U.S. dollars or other currencies and sold to investors outside the country whose currency is used.
EV	Enterprise Value
EV / Equity	Enterprise Value to Equity Ratio
Ex-Dividend	The interval between a fund distribution's record date and payable date. During this period, investors who purchase shares are not entitled to the distribution payment.
Exercise Price	Price at which the stock or commodity underlying a call or put option can be purchased (call) or sold (put) over the specified period
Extension risk	The risk that rising interest rates will slow the anticipated rate at which mortgages or other loans in a pool will be repaid, causing investors to find their principal committed longer than expected. As a result, they may miss the opportunity to earn a hi
Face amount	Par value (principal or maturity value) of a security appearing on the face of the instrument
Federal funds rate	The interest rate charged by banks on loans of their excess reserve funds to other banks. The Federal Reserve's ability to add or withdraw reserves from the banking system gives it close control over this rate. Changes in the federal funds rate are sometim
Fiscal Year	A 365-day accounting period for which a company or mutual fund prepares financial statements.
Fixed Asset	Tangible property used in the operations of a business, but not expected to be consumed or converted into cash in the ordinary course of events.
Floating-rate bond	A bond for which the interest rate is adjusted periodically according to a predetermined formula, usually linked to an index.
Floor	The lower limit for the interest rate on a floating-rate bond.
Forward Contract	Purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current or spot rate, with delivery and settlement at a specified future date.
Front Running	Practice whereby a securities or commodities trader takes a position to capitalize on advance knowledge of a large upcoming transaction expected to influence the market price.
Futures Contract	An agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date.
General obligation bond	A municipal bond secured by the pledge of the issuer's full faith, credit and taxing power.
Global Depository Receipt (GDR)	Receipt of shares in a foreign-based corporation traded in capital markets around the world. The advantage to the issuing company is that they can raise capital in many markets, as opposed to just their home market. The advantage of GDRs to local investor
Growth Stock	Stock of a corporation that has exhibited faster-than-average gains in earnings over the last few years and is expected to continue to show high levels of profit growth.
Hedge	Strategy used to offset investment risk, typically from adverse movements in interest rates or securities prices. A perfect hedge is one eliminating the possibility of future gain or loss.
Hedge Fund	Private investment partnership or an off-shore investment corporation in which the general partner has made substantial personal investment, and whose offering memorandum allows for the fund to take both long and short positions, use leverage and derivati
High-yield bond	Bonds issued by lower-rated corporations, sovereign countries and other entities rated Ba or BB or below and offering a higher yield than more creditworthy securities, sometimes known as junk bonds.
Holding Company	A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. Also called parent company.
Hostile Takeover	Takeover of a company against the wishes of current management and the board of directors.
IFCG	International Finance Corporation Global Index
Index	Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base period.
Initial Public Offering (IPO)	A corporation's first offering of stock to the public.
Insider Trading	Practice of buying and selling shares in a company's stock by that company's management or board of directors, or by a holder of more than 10% of the company's shares.
Intangible Asset	Right or nonphysical resource that is presumed to represent an advantage to the firm's position in the marketplace. Such assets include copyrights, patents, trademarks, goodwill, and franchises.
Interest	Compensation paid or to be paid for the use of money. Interest is generally expressed as an annual percentage rate.
Internal Rate of Return (IRR)	Discount rate at which the present value of the future cash flows of an investment equal the cost of the investment.
Investment-grade	Bonds considered suitable for preservation of invested capital by the rating agencies and rated Baa or BBB or above.
Issuer	An entity which issues and is obligated to pay principal and interest on securities.
Junk Bond	A debt obligation with a rating of Ba or BB or lower, generally paying interest above the return on more highly rated bonds, sometimes known as high-yield. This low-rated bond as it offers higher interest rates along with higher risk, makes it more appropr
KSE	Kuwait Stock Exchange
Leverage	The use of borrowed money to increase investing power.
Leveraged Buyout	Takeover of a company, using borrowed funds. Most often, the target company's assets serve as security for the loans taken out by the acquiring firm.
Liability	Claim on the assets of a company.
LIBOR (London Interbank Offered Rate)	The rate banks charge each other for short-term Eurodollar loans. LIBOR is frequently used as the base for resetting rates on floating-rate securities.
Liquidity	Ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price.
Management Buyout	Purchase of all of a company's publicly held shares by the existing management, which takes the company private.
Management Fee	Charge against investor assets for managing the portfolio of an open- or closed-end fund as well as for such services as shareholder relations or administration.
Mark to the Market	Adjust the valuation of a security or portfolio to reflect current market values.
Market Capitalization	Value of a corporation as determined by the market price of its issued and outstanding common stock. It is calculated by multiplying the number of outstanding shares by the current market price.
Marketability	A measure of the ease with which a security can be sold in the secondary market.
Maturity	The date when the principal amount of a security is payable.
Maturity Date	Date on which the principal amount of a note, bond, certificate of deposit, or other debt security becomes due and payable.
Merger	Combination of two or more companies, either through a pooling of interests, where the accounts are combined; a purchase, where the amount paid over and above the acquired company's book value is carried on the books of the purchaser as goodwill; or a con
Minority Interest	Interest of shareholders who, in the aggregate, own less than half the shares in a corporation.
Monopoly	Control of the production and distribution of a product or service by one firm or a group of firms acting in concert.
Mortgage pass-through	A security representing a direct interest in a pool of mortgage loans. The pass-through issuer or servicer collects payments on the loans in the pool and "passes through" the principal and interest to the security holders on a pro rata basis.
MSM	Muscat Securities Market
Mutual fund	Also known as an open-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell and redeem their shar
Naked Option	Option for which the buyer or seller has no underlying security position.
NBAD	National Bank of abu Dhabi
Net Asset Value (NAV)	The price of a share of a fund, net of sales charges. Price may vary daily.
Net Present Value (NPV)	Method used in evaluating investments whereby the net present value of all cash flows (such as the cost of the investment) and cash inflows (returns) is calculated using a given discount rate, usually a rquired rate of return. An investment is acceptable
Net Worth	Amount by which assets exceed liabilities.
NIAT	Net Income After Tax
Non-callable bond	A bond that cannot be called for redemption by the issuer before its specified maturity date.
Off-Balance-Sheet Financing	Financing that does not add debt on a balance sheet and thus does not affect borrowing capacity as it would be determined by financial ratios.
Offer	The price at which a seller will sell a security.
Offering price	The price at which members of an underwriting syndicate for a new issue will offer securities to investors.
Open-End Fund	A listed fund that continually creates new shares on demand. The fund shareholders buy the shares at net asset value and can redeem them at any time at the prevailing market price.
Over the Counter (OTC)	Market in which securities transactions are conducted through a telephone and computer network connecting dealers in stocks and bonds, rather than on the floor of an exchange.
Oversubscribed	Underwriting term describing a new stock issue where there are more buyers than available shares.
P/B	Price to Book Ratio
P/E	Price to Earnings Ratio
Par value	The principal amount of a bond or note due at maturity.
Paying agent	Place where principal and interest are payable. Usually a designated bank or the office of the treasurer of the issuer.
PB	Price to Book Ratio; Compares a stock's market value to the value of total assets less total liabilities (book value). Determined by dividing current stock price by common shareholder equity per share (book value), style='mso-spacerun:yes'> </span>adjusted for stock splits.
Poison Pill	Strategic move by a takeover-target company to make its stock less attractive to an acquirer.
Premium	The amount by which the price of a security exceeds its principal amount.
Prepayment	The unscheduled partial or complete payment of the principal amount outstanding on a mortgage or other debt before it is due.
Prepayment risk	The risk that falling interest rates will lead to heavy prepayments of mortgage or other loans-forcing the investor to reinvest at lower prevailing rates.
Present Value	Value today of a future payment, or stream of payments, discounted at some appropriate compound interest rate.
Price/Earnings Ratio (P/E)	Price of a stock divided by its earnings per share. The P/E ratio may either use the reported earnings from the latest year (called a trailing P/E) or employ an analyst's forecast of next year's earnings (called a forward P/E).
Primary market	The market for new issues.
Principal	The face amount of a bond, payable at maturity.
Private Placement	Sale of stocks, bonds, or other investments directly to an institutional investor.
Privatization	Process of converting a publicly operated enterprise into a privately owned and operated entity.
Profit Taking	Action by short-term securities or commodities traders to cash in on gains earned on a sharp market rise.
Prospectus	Formal written offer to sell securities that sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision.
Put Option	Contract that grants the right to sell at a specified price a specific number of shares by a certain date.
Quick Ratio	Cash, marketable securities, and accounts receivable divided by current liabilities.
Ratings	Designations used by credit rating agencies to give relative indications of credit quality.
Realized Profit (or Loss)	Profit or loss resulting from the sale or other disposal of a security.
Registered bond	A bond whose owner is registered with the issuer or its agent. Transfer of ownership can only be accomplished when the securities are properly endorsed by the registered owner.
Reinvestment risk	The risk that interest income or principal repayments will have to be reinvested at lower rates in a declining rate environment.
REMIC (Real Estate Mortgage Investment Conduit)	Because of changes in the 1986 Tax Reform Act, most CMOs are now issued in REMIC form to create certain tax advantages for the issuer. The terms REMIC and CMO are now used interchangeably.
Retail Investor	An investor who buys securities on his own behalf, not for an organization.
Retained Earnings	Net profits kept to accumulate in a business after dividends are paid.
Return on Equity	Amount, expressed as a percentage, earned on a company's common stock investment for a given period.
Revenue bond	A municipal bond payable from revenues derived from tolls, charges or rents paid by users of the facility constructed with the proceeds of the bond issue.
Rights Offering	Offering of common stock to existing shareholders who hold rights that entitles then to buy newly issued shares at a discount from the price at which shares will later be offered to the public.
ROaA	Return on Average Assets
RoaE	Return on Average Equity
Secondary market	Market for issues previously offered or sold.
Seed Money	Venture capitlist's first contribution toward the financing or capital requirements of a start-up business.
Selling Short	Sale of a security not owned by the seller; a technique used (1) to take advantage of an anticipated decline in the price or (2) to protect a profit in a long position.
Settlement date	The date for the delivery of securities and payment of funds.
Sharpe Ratio	A measure of a portfolio's excess return relative to the total variability of the portfolio.
SHUAA	Arabic acronym for Arabian General Investment Corporation
Sinker	A bond with a sinking fund.
Sinking fund	Money set aside by an issuer of bonds on a regular basis, for the specific purpose of redeeming debt.
Sovereign Risk	Risk that a foreign government will default on its loan or fail to honor other business commitments because of a change in national policy.
Speculation	Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss.
Standard deviation	The square root of the variance. A measure of dispersion of a set of data from its mean.
Stock Dividend	Payment of a corporate dividend in the form of stock rather than cash.
Swap	The sale of a block of bonds and the purchase of another block of similar market value. Swaps may be made to establish a tax loss, upgrade credit quality, extend or shorten maturity, etc.
Synergy	Ideal sought in corporate mergers and acquisitions that the performance of a combined enterprise will exceed that of its previously separate parts.
Top-Down Approach	An investment strategy that focuses on general market trends and selects specific stock sectors that can benefit from these broad trends.
Total Return	Annual return on an investment including appreciation and dividends or interest.
Trade date	The date when the purchase or sale of a bond is executed.
Transfer agent	A party appointed by an issuer to maintain records of securities owners, to cancel and issue certificates and to address issues arising from lost, destroyed or stolen certificates.
Treasury Stock	Stock reacquired by the issuing company and available for retirement or resale.
Trustee	A bank designated by the issuer as the custodian of funds and official representative of bondholders.
Turnover	A measure of trading activity; the volume of shares traded as a percent of total shares listed during a specified period, usually a day or a year. In the case of mutual funds, turnover is a measure of trading activity during the previous year, expressed as
Underwrite	To assume the risk of buying a new issue of securities from the issuing corporation or government entity and reselling them to the public.
Unit investment trust	Investment funds created with a fixed portfolio of investments that never changes over the life of the trust. They are created by brokerage houses, and are liquidated as investments within the trust are paid off. They provide a steady, periodic flow of inc
Volatility	Characteristic of a security, commodity, or market to rise or fall sharply in price within a short-term period.
Window Dressing	Trading activity near the end of a quarter or fiscal year that is designed to dress up a portfolio to be presented to clients or shareholders.
Yield	The annual percentage rate of return earned on a security. Yield is a function of a security's purchase price and coupon interest rate.
Yield curve	A line tracing relative yields on a type of security over a spectrum of maturities ranging from three months to 30 years.
Yield to call	A yield on a security calculated by assuming that interest payments will be paid until the call date, when the security will be redeemed at the call price.
Yield to maturity	A yield based on the assumption that the security remains outstanding to maturity. It represents the total of coupon payments until maturity, plus interest on interest, and whatever gain or loss is realized from the security at maturity.
Zero-coupon bond	A bond where no periodic interest payments are made. The investor receives one payment, which includes principal and interest, at redemption (call or maturity).