Jargons in Finance A

A1 It means the highest class rating. AAD The abbreviation stands for "At a discount." AB It is the abbreviation of "Bond Adjustment." Absolute Advantage It signifies an advantage of one area over another in respect of costs of manufacturing an item in terms of used resources. Absolute Title It is a title to which no conditions are attached. Acceleration Clause A statement which states that in the event of default of any of its covenants, the debt must be paid in total. Acceptance Liability Ledger A ledger containing the list of bills accepted for each customer of bank in form of an account that contains his name, address, date, line, credit number, acceptance number, bill amount, total amount accepted or e pired, e piration date and payment date. Accession Rates It refers to an average number of persons added to a payroll in a specified period of time per !"" employees. Account Day A day identified by stock e changes and commodity e changes to settle the account between members. Accounting Rate of Return It is a ratio derived by dividing income for a period by the average investment that has occurred during that period. Accrued Depreciation #epreciation occurred during a specified period of time. Accrued Dividend #ividend earned but not declared or payable. Accrued Income Income which is earned but not received. Accrued Interest Accumulated interest on a bond after the last payment of interest.

Accumulated Dividend A dividend not paid when due, it being a liability of the business until paid. Accumulated arnings Ta! A ta levied on accumulated earnings of the business which are beyond its re$uirement. Active Trade Balance %avorable balance of trade. Ad "alerom According to value and not as per weight or $uantity. Ad "alorem Ta!es Ta es on real estates that are determined as per the value of the property. Ad#unct Account It is an account which adds to another e isting account, represented by transfers from another account. Ad#ustable $eg A system that permits changes to be made in the par rate of foreign e change after a country has had long&run dise$uilibrium in its balance of payments. Ad#uster 'ne who seeks to find an appropriate solution to customer(s complaint regarding service or accuracy is known as an adjuster. Advance Bill A bill of e change drawn prior to the shipment of goods. Adverse Claim A claim made by a person other than the owner. Advice Boo% A statement of advises received and disbursed. Advices )everal types of forms used in the banking sector. After &ig't A term fre$uently used in a bill of e change for determining the due date of payment of bill. Agency The term describes certain types of accounts in trust institutions. Aggregate Corporation A venture incorporated by more than one stockholder. Aggregate Demand It is the total of personal consumption e penditures, business investments, and government spending.

Aggregate &upply It refers to the capacity of a country(s total resources to produce real goods and services. Aggressive (ro)t' Fund It represents the mutual fund with investment objective of capital appreciation. Agio The sum given above a nominal value, for the e change of currency of one nation with that of another nation. It also means rate of e change among different countries. Alien Company A company which is formed and operates under regulations of a foreign country. Allonge A paper affi ed to a bill for further endorsements. Alternate Account An account opened in the name of two or more persons, any of whom may withdraw from such account without further authority from others. Alternate Depositors They are the holders of a joint account which is payable to either or to the survivor. Amorti*ation Reserve An account shown in the balance sheet which records the net accumulated provisions for the e tinguishment of an asset at the end of specified period. Amorti*ed "alue It denotes the investment value of a security which is determined by the process of amorti*ation. Annual Balanced Budget It a concept which states that total revenues and e penditures in a government(s budget should be balanced or brought into e$uality each year. Annual $ercentage Rate It is the cost of credit on a yearly basis e pressed as a percentage. Annual +age A minimum income guaranteed for total number of hours of employment during a year. Annual ,ield The percentage of return or income in form of dividends+ interest which an investment yields each year. Annuitant The person to whom an annuity is payable. Annuity Table A table containing list of the present values of ,e.!."" per year or per month payable for life, or for specified number of years at specified ages for each se which is computed on the basis of assumed rates of mortality and interest.

Annuity- Life An annuity payable to the annuitant throughout his lifetime. Annuity- Retirement A deferred annuity for which the premiums, less loading are accumulated at interest and are used to purchase an annuity at a specified age. Anticipation -aking charges against an income or profit before such gain is actually reali*ed . )ettlement of an account before the actual due date and thus permitting a discount. Appropriation Ledger A subsidiary ledger that contains an account of each appropriation. Appropriation is setting aside of a sum of money for paying certain known or anticipated e penditures. Arbitrage The purchase and sale of identical item in different markets with the intention to make profit. Arrival Draft A draft which accompanies shipping documents and is payable only on arrival of goods as described in the shipping documents. As arned The term describes the basis of income of a customer who is not paid on a regular basis&that is business&for&self. As per Advice These are words found on a bill of e change indicating that the drawee has been informed that the bill has been drawn on him+ her. As%ed $rice /rice which is officially offered in a sale. It also means that price at which a stock is offered for sale. Assented &ecurities )ecurities whose owners have agreed to permit changes to be made in the status of those securities. Assessable &toc% )ecurity which is subjected to an assessment order because of corporation(s reorgani*ation or insolvency. Asset Currency Bank notes which are secured by the general assets and not any particular assets of the issuing bank. Assimilation It means the completed distribution of new shares or securities to the public by the underwriters of the issue and syndicate members. Associated Ban%s Banks which are associated through membership in a clearinghouse association are called associated banks.

Assurance A payment of a stated sum at a given time on payment of a premium at regular intervals by those assured+ concerned. At Call The transaction that occurs in a call money market. At or Better In case of sale, the jargon signifies selling at the given price or at a higher price. In case of purchase order, the jargon indicates buying at the specified price or at a lower price. At &ig't A term used in a bill of e change or other negotiable instruments which states that the instrument is due for payment upon presentation or on demand. Attac'ed Account It is an account free*ed by a court order and payment from such account can be made only with the consent of the court. Attac'ed Ledger A ledger maintained for recording details of attached accounts. Automated Clearing'ouse It is a computeri*ed facility operated by member depository institutions to process payment orders in a machine&readable form. Automated Teller .ac'ine A machine used for processing transactions such as accept deposits, allow withdrawals, facilitate transfer of funds between accounts, accept instructions to pay third parties in a transaction between a depository institution and its customers. Automatic &tabili*er It is a tool of economics and finance that is used to compensate for the shifts in the business cycle without any involvement of government. Availability Date It is that date on which che$ues payable at out&of&town banks are considered to be collected and available for withdrawal by customers. Average It means buying or selling of more shares, items or others with the intention of getting a better average price. A)ard It signifies acceptance of a bid or assigning a project on the basis of offer made. It also means accepting a competitive bid by a borrower for a security issue in the form of notification to the high&bidder investment banker or syndicate. A, The abbreviation stands for Annual 0ield.

B/L Abbreviation for bill of lading. Bac% To finance, to sponsor, or to endorse. Bac% Door It is another name for the 1.). Treasury. Bac% 0rder It refers to a part of an original order which was not filled in the first shipment and which has to be sent when becomes ready without re$uiring the customer to reorder the items. Bac%door Financing This is practice that enables a government agency to borrow from the 1.). Treasury instead of depending on congressional appropriations. Bail It is bond given by another on one(s behalf for the payment of money in case of failure by the accused to appear in the court on a specified day. Bailee Receipt It is receipt given by a bailee to a bank which holds tittle to the goods. The bailee being the customer of that bank is then allowed to sell those goods for the amount owed to the bank. Bailout It is an illegal act in which corporate monies are provided to shareholders payments which are subject to ta at desirable capital gains rates. Balance of $ayments It is statement which compares all financial transactions of a country and its population with that of other countries of the world. Balance of Trade It refers to the difference between imports and e ports of a nation over a period of time. Balanced Budget It is a budget for a period in which the future e penditures for that period are matched by the e pected revenues for that period. Balanced Fund It refers to a mutual fund in which the investment policy is of "balancing" its portfolio normally by including bonds, common and preferred stocks in its investment policy. Balloon It is lump&sum amount owed to a loaning bank by a home borrower after the e piration of home loan period. Balloon Loan It is kind of loan in which small payments are made during the term of the obligation.

Balloon .ortgage It is a kind of mortgage which allows for payments which do not completely amorti*e the loan at the time when the mortgage contract terminates. Balloon $ayment It is huge amount of e tra payment that may be charged on the termination of a loan or lease period. Ballooning It refers to manipulation of prices for the purpose of increasing the prices beyond safe or real values. Ban% Acceptance It is an accepted bill of e change or draft that is signed by a bank. Ban% Call It refers to a re$uest made by a government statement for a bank(s balance sheet for a specified date. Ban% C'e1ue It is a che$ue drawn by a bank on itself with signature of a duly authori*ed officer. Ban% for International &ettlements 2BI&3 It is an organi*ation established in !23" and located in Basel, )wit*erland. This organi*ation was established for the purpose of fostering co&operation among world central banks, as also to seek opportunities for the development of financial activities among governments of different nations and also for serving as an agent involving transfer of payments. Ban% 4olding Company A company which owns or controls one or more banks is referred to as bank holding company. Ban% Rate It is a rate of discount fi ed by the national bank of country for the purpose of rediscounting of eligible paper. Ban%able Bill It is document which can be discounted at a bank. Ban%able $aper It is a document that satisfies the credit standards for acceptance or endorsement by a bank. Barometer &ecurities These are securities like stock which move in the same direction as the market and are considered to be representative of the market. Barometers These are business measurement units, such as consumer price inde , gross national product, etc., that are used to determine the economic conditions of the market. Barren .oney It means that currency which does not earn any interest or other forms of interest.

Base It refers to any bullion, coin, or metal which is adulterated. It contains inferior or less valuable metal and has little value when compared to precious metals. Base $eriod A date selected from the past used in measuring the price inde . Basic Crops %arm items selected for the purpose of price support from government. Bear Account Any short account. Bear .ar%et A stock market that goes down over a period of time i.e. a declining stock market. Bear Raid It is an attempt made to reduce the price of a security or any other item by way of heavy selling. Bears )peculators who anticipate that prices will fall. Beggar5my56eig'bor $olicy It is policy to discourage imports by using certain effective means which includes increasing tariffs. Beta It is a measure of stock(s sensitivity to the movement of the general market 4)5/ 6""7 in either direction over the last five years. Bid and As%ed Bid refers to the $uotation offered by a prospective buyer for purchase of any property put up for sale whereas asked refers to the $uotation made by a seller for the purpose of sale of such property. Bilateral .onopoly It is a type of market condition where there e ists only one purchaser for a product or service and there is only one seller who controls the creation and supply of that product or service. Bilateral $ayments Agreement It is an agreement entered into by two nations or their central banks in order to channelise all or some specified settlements between themselves through certain special accounts. )uch agreement is normally subjected to a reciprocal credit margin 4swing7. Bill Bro%er Any financial dealer in bills of e change is called a bill broker. Bill of Credit A re$uest in writing by an individual to a bank for delivery of money to the bearer of such instrument either on the credit or on the account of the writer of such re$uest.

Bills of Credit A term formerly used to denote paper money issued by the government but has now become obsolete. Bimetallism The term stands for a double standard of metals used in coins. BI& Abbreviation of Bank for International )ettlements. Blac% Capitalism It means an attempt to increase business ownership among the blacks. Blac% +or% 8abor done by people outside their regular jobs in order to avoid ta . Blan%et Agreement It is an agreement for collective bargaining that is based on an industrywide negotiation. Blan%et 0rder It is a preseason order for meeting e pected buyer demand. Blasted It means a person without money. Blind ntry It is a bookkeeping entry in which only the accounts and the amounts 4whether debit or credit7 are stated without any further details that are essential to an accurate record. Bloc% It is a bundle of che$ues, along with their relative deposit slips, deposited with a bank for credit. Blue C'ip It is a term used in stock market used for describing a corporation that maintains a good dividend return and also has a sound management with a good growth potential. Blue &%y La) It is another name to describe certain laws, which are enacted by various states for the purpose of regulating the sale and issuance of securities. -oreover it aims at preventing fraud in the sale and distribution of securities. Bond Amorti*ation It means to indicate, in case of a bond, the premium paid over par value. Bond- Callable It is kind of bond issued that may be redeemed in full or part of it by the issuing corporation under some specific conditions, before the issue matures. Bond- Called It is kind of bond, callable which has been declared by the debtor to be due and payable on a certain date, before its maturity.

Bond- Consolidated It is a kind of instrument of debt which is issued in order to replace two or more bonds that were issued earlier. Bond- Convertible It is type of bond which offers the owner of such bond, a preferential right to e change it for other securities of the issuing corporation at some future date and+or under certain conditions. Bond- Debenture It is type of bond which offers no specific security for repayment of the principal, i.e. no specific securities are set aside for repaying principal amount. Bond- (ilt5 dged It is a high&grade bond issued by a company which has an ability to earn good profit over a period of years and is also prompt in interest payment to its bondholders. Bond- Income It is a kind of bond on which interest is paid only when earned by its issuing corporation. Bond- Indemnity It is type of bond which gives protection to the obligee against losses that result from the principal9s failure to fulfill his+her obligations. 'bligee is one for whom the principal has undertaken to perform specified duties. Bond- Indenture It is an agreement in writing under which bonds are issued, and which states the maturity date, interest rate, and various other terms. Bond- 0pen5 nd It is a type of mortgage bond of an issue which does not place any limit on the number of bonds that can be issued under the mortgage. Bond- $remium It is a bond that is sold above its face value. Bond- $ublic It is a bond that is issued by a governmental agency be it domestic or foreign. Bond- &urety It is an covenant which states that in the event of default by the contractor or non&performance of specified acts within a stated period, the surety shall be responsible for fulfillment of such contract or liable to monetary compensation. Bonded Debt It is a debt that is represented by bonds. Bonus Account It is savings account on which interest at the rate of interest on bonds is paid subject to the condition that the customer is regular in depositing, maintains a specified balance for a particular term or the customer fulfills other conditions of the account contract. Boo% It is a notebook maintained by the specialist in a stock e change for recording buying and selling

orders at specified prices. It is maintained in se$uence of receipt that the specialist is left with by other brokers. Boo%- Close It is the date on which the transfer books of a firm are closed by the transfer agent of that firm and the list of stockholders is reviewed by him in order to recogni*e those who are $ualified to receive dividends and vote. Boo%- 0pen It is the date on which the transfer books of firm are opened by the transfer agent in order to continue the activity of transfer of stocks after they have been closed to determine the list of stockholders. Boot It is a payment made to the Treasury or a payment made by the Treasury which may be necessary in advance refunding in order to align more closely the respective values of the eligible issues and the issues offered. Bottomry It is a loan granted on the security of lien on a vessel. Bounty It is an incentive in the form of additional payments granted by a government to a particular sector or to augment e port of certain items. Brain &torm It is a clever, instinctive idea or an instantly arrived solution to a problem. Brea%out It refers to a situation when a particular security rises above a specific level where there e ist strong selling resistance, or when a particular security falls below a specific level where there is a strong purchasing support. Bro%en Lot It is odd lot that is usually less than !"" shares of a stock. Bro%er7s .ar%et It is market condition where the brokers trade to a large e tent on their own account but the investing public is commonly sluggish. Bro%er7s Tic%et It is statement in writing which gives details of all buying and selling orders rendered by a broker. It gives information such as names of broker and customer, date, name and amount of the security dealt in, price of the security and so on. Bro%er5Dealer It is concern that is engaged in retailing securities to the public. Bubble It is an imprudent business endeavor in which the price of goods and services dealt in by the business bears insignificant or no relationship to the value of the asset.

Bubble Company It is a name given to a concern which is floated with the intention of cheating the public. The term is also used to describe a concern that did not intend to be honest and never had a genuine business. Buc%et &'op It is an unlawful business in which the customers engage in betting on the increase or decrease of stock prices on the regular e change. Although orders are not filled, profits and losses are based on the actual price movement on the e change. The broker charges a commission for this work. Budgetary Control It is scheme to achieve ma imum profits from minimum capital investment by way of regulating all operations of business. Bullet maturity Issuer pays entire lump sum on the maturity of bond Burn It signifies deceiving a trade partner out of his profits. Bust It is an economic condition where there is a drastic decrease in business activity. This depression leads to low profits resulting in high unemployment and low incomes. Butterfly &pread It refers to simultaneous sale or purchase of three futures contracts in same or different markets. Buy Bac% It refers to a company(s purchase of its own securities. A company might decide to buy back some of its common stock if it thinks that the price is too low and that a return of capital to shareholders is the most efficient use of its money Buy Do)n It is situation where a lump sum of money is paid in advance by a builder to the bank in order to reduce monthly charges on the mortgage. Buy 0ut It signifies purchasing of all the assets or the interest of an ongoing organi*ation owned by another. Buy Tic%et The investment department uses this form, prepared in multiple copies, for instructing the order department in its concern to purchase a security. Buyer7s .ar%et It is a market where the supply is more than demand resulting in low or falling prices and where the buyers administer the prices and terms of sale. Buyer7s .onopoly It is market condition where there are many sellers but only purchaser.

Buyers 0ver It is a market situation where number of buyers surpass that of sellers.

C
Cambist 'ne who buys and sells foreign currencies is called a cambist. Capital Appreciation It means an increase or other appreciation in the value of a capital asset. Capital Budget It is a budget that lists the e penditures on capital items & such as on building, purchasing capital goods : and the sources of funds to meet those e penditures. Capital 0utlay It refers to e penditure on replacement, major alterations, addition to or ac$uisition of fi ed assets but it does not include e penses on repair. Capital Rating It is rating given by business organi*ation when appraising the net worth of a firm. Capital Resources These are resources, which cannot be generally used for meeting e penditures, and are usually fi ed or permanent in character. These resources are in the form of land and building. Capital &tructure -i of stocks and bonds in a company(s financial makeup Capital Turnover It is ratio that determines the rate at which assets of an organi*ation are converted into cash. Carnet It is a document of international customs that allows import of specific items without charging any duty on temporary basis into certain countries. Carrying Bro%er A broker or commission house who maintains a client9s account. Carrying .ar%et It is a market in which more distant positions are $uoted at a premium over the nearby positions, and where this premium is high enough to compensate for the carrying charges. Carrying "alue It is the written down value of a fi ed asset which is derived after deducting accumulated depreciation of such asset from its original depreciable cost. Carrying50ver Day Any day of delivery, which is postponed.

Cas' Against Documents It is a condition in the contract of sale according to which the purchaser must make payment for his purchase well in advance i.e. before the shipping papers are received by him. Cas' Flo) It is net income of a corporation in cash which is derived by adding to the reported net income of a corporation, amounts written off or charges such as depreciation, amorti*ation of e traordinary charges, appropriation to reserves. )uch an adjustment is necessary to arrive at actual cash inflow and outflow, as these are only book adjustments that do not actually involve any cash inflow or outflow. Cas' &ale It is any transaction of sale of any securities or commodities paid in full with cash for immediate delivery of goods. It also refers to a transaction on the floor of an e change in which the securities are to be delivered the same day and not in regular way in which the securities are delivered on the fifth business day. Cas' &'ort It is a general ledger account which is charged with the cash shortages of tellers. Cas' &urrender "alue It is sum total of money that a bank pays on cancellation of its life insurance policy. Cas' "alue It is the amount that can be received by life insurance policy holder on surrender of the policy to the insurer. Cas'ier7s C'e1ue It is a form of bank9s own check, which is signed by the cashier of that bank. It becomes a loan upon issue to the customer as it is payable from the bank9s own funds and not from the funds of the depositor to whom such a che$ue is issued. Cats and Dogs The term is used to denote stocks that are highly speculative. It also signifies items, which do not have sufficient sales turnover and accumulate inventory. Caveat mptor It is a 8atin saying which means that "8et the buyer beware". It means that in case of purchase without any warranty, the risk of loss lies on the buyer. Caveat &ubscriptor 2"enditor3 It is a 8atin )aying which means "8et the seller beware". In a contract with this clause the seller is answerable for any alterations from the written contract unless he states no responsibility at the time of making contract. Caveator It stands for one who gives caution+warning. Ceiling $rice It is the ma imum price of goods and services fi ed by the government usually during battling. Certificate Account It is similar to a savings account in which fi ed sum of amount is deposited for a specified period

of time and which yields rate of interest that is higher than the normal savings account. ;owever the customer is charged a penalty for premature withdrawal. Certificated &ecurities These are specific commodities approved by a commodity e change, which are held in warehouses and certified for delivery on future contracts. Certification It is an act of assuring by a bank that the drawer of a che$ue has ade$uate money to cover payment on the che$ue issued and that monies have been set aside to discharge the incoming liability. CF It is an abbreviation for cash flow. C'ain Ban%ing It is form of multiple&office banking. In this system of banking one or more individuals control at least three independently incorporated banks. C'arge Account It is the line of credit, which may be used over and again up to a certain specified e tent. C'arge Account Ban%ing It signifies making an arrangement with a bank or any lending institution for a line of credit. C'arter It is a contract entered into by the state and a private corporation which describes the articles of association, powers and privileges granted to the corporation. C'artist ;e is an individual interpreting stock market activity and estimating future movement. ;e does this from graphic representation of price and volume on charts. It is done for a short period of time. C'attel It stands for property other than real property. %or instance, movable properties are chattels personal and construction on real property is a chattel real. C'ec% Rate It is the basic rate for foreign e change trade that is used to calculate all other rates. C'ec%off It is an act, by an employer, of withholding payment of wages to a union of dues and assessments. Civil Loans These are loans contracted by any state or municipal agency. Claim Audit It is an e amination of a policy document in order to ascertain the payment owing to an insured, for loss that is covered by that particular policy.

Class of 0ptions It is the options contracts of the same type that covers the same underlying security. Clear Tittle It means good tittle or marketable tittle. Clearance Fees It refers to the change incurred in a commodity e change succeeding the clearing of a trade. Clearing It refers to transfer of cash and securities physically between the purchasers and sellers. Clearing .ember ;e is a member of both clearinghouse and an e change. Clearings These are incoming cash letters of items which must be proved, sorted, returned if necessary, and for which settlement must be made. Closed Account It is an account in which debit and credit amounts are e$ual. Closed Corporation It is a corporation in which only few people, usually the management people, own all the shares of such corporation. Closed &'op It is an agreement according to which only those employees are entitled to continue working who were members in a union and were in good standing before they were hired to work. Closed5 nd Fund It is a concern engaged in investment business and whose shares are traded on a securities e change or the over&the&counter market. Closing Costs These are e penses such as lawyer9s fee, inspection charges, tittle insurance that are related to transfer of real estate ownership and incurred by seller and buyer. Closing &ale It is a transaction in which an investor who had previously purchased an option states his intention to li$uidate his or her position as a holder by selling in a closing sale transaction an option which has the same terms as the option previously purchased. Cognovit 6ote It is a combination of promissory note and chattel mortgage according to which the borrower waives his right of action to the chattel mortgage in the event of failure to pay the sum agreed in the transaction. Collapsible Company It refers to a concern whose main purpose of establishment is to construct, manufacture, produce property, or to buy inventory, stock in trade, or property held primarily for sale to customers, unreali*ed receivables or fees, or assets held three years ago.

Collateral It means a security left with the lender or creditor to guaranty the fulfillment of contract by the obligator. Collateral &ecurity It is a property security that is different from personal security. Collectible It means something, which can be transformed into cash. Collusive Bidding It is a type of bidding by suppliers in which the suppliers have agreed to give similar or identical bids to the potential buyers, after a mutual understanding among themselves. Combined Financial &tatement It is a financial statement in which the results of operations and the financial position of all the companies of a group that has a common management and control are combined and presented after eliminating the intercompany transactions. Come Across To pay money owed. Commercial Credit It refers to credit facility provided by associations to an organi*ation having business with such associations. Commercial Draft It is an instrument of payment of money in which the seller draws an order for payment on the buyer9s account at a bank. Commercial Loan It is a form of loan facility, different from personal loans or consumer credit loans, which is e tended to business units for the purpose of financing for inventory purchases and the movement of goods. Commercial $roperty It is the property that is used for business purposes and which is different from properties used for agricultural, residential or other industrial purposes. Commercial &toc%s It refers to agricultural stocks of grain stored at major grain centers. Commingled Accounts It is a collection of several bank trust department accounts that are managed as one account in order to derive benefit of economies that are available to large investments. Commission 4ouse It means a broker who buys and sells only for customers and does not trade his own account. Commission .erc'ant 'ne who transacts business in his own name. ;e has physical control over the goods consigned to him and he negotiates their sale.

Commodity T'eory of .oney It refers to a concept which states that the value of money is determined by the value of commodity of which it is composed or which it represents. Common .ac'ine Language 2.ICR3 It is the common machine language for mechani*ed che$ue handling which has a specially designed group of !" Arabic numbers and four special symbols printed in magnetic ink in designated field locations along the bottom edge of a che$ue. Common &toc% It refers to those securities that denote an ownership interest in a corporation. Condensed Balance &'eet It is a balance sheet in which the details are not given but a complete and accurate reading of the assets, liabilities and capital of the concern is given. Conglomerate It is the outcome of a merger of two or more organi*ations generating different goods and services. The main intention of such merger is to obtain a large economic base, achieve sound management and ac$uire greater potential profit. Consolidated Balance &'eet It is balance sheet that depicts the financial position of a corporation along with its subsidiaries. Consolidated &in%ing Fund It is a single sinking fund that serves more than one i.e. two or more, bond issues. Consolidation It is an alliance of two or more organi*ations into one in order to form a new entity. Consols It is a type of bond that will never reach maturity. Consortium It is an association of corporations formed to accomplish a combined aim or scheme that re$uires interbusiness cooperation and sharing of resources. Consumer Debentures These are investment notes sold by a financial institution directly to the public. Consumer Finance Companies These are companies specially authori*ed by a state authority to provide reliable service to consumers for installment cash loans. Consumer $rice Inde! 2C$I3 It is a measurement of the cost of living determined by the Bureau of 8abor )tatistics. Contango It refers to the cost factors when calculating from one given period to a future point. It also signifies a basic pricing system in futures trading, a form of premium or carrying charge. Contraband The term denotes unlawful or forbidden goods.

Conventional Billing It is a system in which the customer is regularly provided with a detailed statement showing all purchases, cash payments, purchase returns and allowances made during a particular period. Core Inflation It refers to any severe increase in prices. It also refers to the elementary rate at which prices would rise even in the absence of any e cessive demand pressure. Correspondent Ban% It is a bank that acts as a depository for another bank as it accepts all deposits and collects various items for the depositor bank. Cost Free capital #eferred income ta and other deferred credits. Cost of Living Inde! It is a popular term for <onsumer /rice Inde and means measurement of changes in prices of goods and services purchased by moderate&income families. Cost T'eory of Capitali*ation It is a concept of determining capitali*ation of a firm by owned investments in fi ed assets, the regular working capital re$uirement of the firm, advertising, and other related costs. Cost5"olume $rofit Analysis It is a devise for measuring the functional relationship among the main aspects of profits. It is also used to identify the profit structure of an enterprise. Coupon Account It is a type of credit granted whereby books of coupons that has a fi ed value are sold on installment payment basis. A coupon is that part of a bond, which is redeemable at a specified date for interest payments. Coupon Ledger It is a ledger used by a bank or trust corporation for recording the receipt of money for paying coupons, spending for redemption of coupons, and the number of coupons paid. Coupon Rate It is rate of interest on interest coupons attached to a bond. Cras' The term signifies an une pected and disastrous decline in business activity, security prices, and so on. Cra)ling $eg It refers to foreign e change rates which allow an automatic change in the par value of a nation(s currency by way of minor increments either upward or downward, if in actual daily trading on the foreign e change markets the price in terms of other monies remain on the floor or ceiling of the established range for a given period. Creeping Inflation It is a moderate but continuos increase in the general price level.

Cremation It signifies an act of burning in the fire certain documents of an organi*ation. Cro)d The term refers to the brokers on the trading floor of an e change and who are engaged in transacting business in securities. Currency Band It is an area cautiously defined by the government of a nation in which that nation(s money fluctuates on both sides of its official parity. Currency Bloc It is a group of countries which use a common currency base. Currency Convertibility It refers to the capability of a nation(s currency to e change for gold and other currencies. Currency $airties It is a mutual understanding among the members of the International -onetary %und that currencies of all major nations of the world to be set in relation to the 1.). #ollar. Current Dollars It is a term used for describing the actual prices of goods and services each year. Current Return It is the present earnings from any investment. Current "alue Accounting It is an accounting approach in which the individual assets of a business are valued in terms of their current prices rather than in terms of the cost at which they were actually purchased. Cut 6otes These are paper money issues that are officially cut or divided into two or more parts and each of which is given its own value. 'verstamping usually indicates such value.

D
Daily Interest Account It is a type of savings account on which interest in paid on daily basis right from the date of deposit to the date of withdrawal. Date of Trade It is the date on which an order to buy or sell is e ecuted. Dating It is a system of e tending the credit period beyond the time limit for which it was originally granted. This is usually done in order to induce to dealers to place advance orders for the coming season. Day Loan It is a loan granted for one day to a broker for purchasing stock on securities being pledged as collateral.

Day 0rder It is a type of order to buy or sell which e pires at the end of the trading day on which it was entered if it is not e ecuted on the same day. Daylig't 0verdraft )uch a situation takes place when a bank overdraws its reserve account during the day time although it replenishes its account at the end of the day. Daylig't Trading It is an act of purchasing followed by selling of a security on the same day in order to avoid a holding position in the shares traded overnight or longer. Dead Asset It refers to that asset which does not produce any income under usual operations. Dead .ar%et It refers to a market in which there are minor price changes and low volume. It also means a dull selling day characteri*ed by low volume of activities, lack of interest from customers or various other factors resulting in poor sales. Dealer Financing It is an arrangement with a bank by a dealer of commodities according to which bank is re$uired to finance the purchase of these commodities on their sale by the dealer. Dear .oney It means presence of high rates of interest. It also refers to a situation when it is difficult to obtain loans because of the supply and demand for credit. Debit It is a list of the weekly premium life insurance agent which shows the premiums he or she is re$uired to collect. It also denotes that part of the purchase price of securities or commodities which is covered by credit granted by a broker to margin customers. Debit Card It is a cash machine automator and a che$ue guarantee. It is a recently innovated system of withdrawing from bank, which allows a bank customer to withdraw cash at any hour from any affiliated automated teller machine in the country. It also permits purchases without paying in cash, from funds in the deposit account and without incurring revolving finance charges for credit. Debit Tic%et It is a bookkeeping note used in a bank which is used to describe in detail the transaction that leads to a debit entry in a ledger account. Debt Financing It is a long&term borrowing of funds by a business organi*ation for obtaining working capital or other funds that are necessary for operations or for discharging current or other liabilities. Debt &ecurities These are fi ed obligations that confirm a debt and are payable on a specified future date. A specific rate of interest is payable periodically. Debtee It describes a creditor.

Debtor 6ation It is nation whose citi*ens, corporations and government owe more to foreign creditors than what foreign debtors owe them. Deceased Account It is the deposit account in a bank in the name of a deceased person. Deceleration $rinciple It is an economic statement which states that the current year9s increase in prices and wages should be in general at least a half percentage point less than average increase from the previous year. Declining Balance It is the balance of amount owned which decreases with each payment. Declining Balance Depreciation It is a method of charging depreciation in which higher amount of depreciation e pense is charged in the initial years and lesser amount in the later years. It is also known as ,educing Balance -ethod of charging depreciation and =ritten #own >alue method of charging depreciation. Decreasing Costs These are costs which decrease as output per unit increases. Deed of &urrender It is an instrument used to recogni*e a property as an estate for life or an estate for years to a person who will ac$uire it in reversion. Defensive Investment It is a type of investment policy which attempts at reducing the risk of eventual loss as well as reducing the necessity for special knowledge, e pertise and constant attention. Defer It signifies delaying payment to a future date. Deferment C'arge It is a supplementary charge on a precomputed loan which leads to in an e tension of all fully unpaid installments by one or more months and thus deferring the formal final interest maturity date. Deferment &'ort It stands for the amount by which a payment falls short to pay the deferment charges being assessed on an account. Deferrals It signifies collecting cash even before income is recogni*ed as being earned. It also signifies disbursement of cash before an e pense is accepted as being incurred. Deferred Asset It is that asset which is not easily convertible into cash, subject to present settlement. Deferred C'arges These are e penditures written off over a period of time.

Deferred Debits These are accounts carried on the asset side of the balance sheet. These accounts record those items, which are amorti*ed as charges against income over a period of years. It also records items held in suspense accounts whose final transfer or disposition is pending. Deferred Dividend It is dividend on preferred or common stock which is not payable until some action occurs. Deferred posting It is a terminology describing a delayed posting of items in bookkeeping department. Deferred &toc% These are stocks on which dividends are not payable before the e piry of a certain date or before a specified event takes place. Deferred Ta! It connotes a ta liability accrued on income that is accounted for but is not subjected to income ta until a subse$uent time period. Deficit Financing It is a step taken by government to make up the difference between government e penditures and revenues, by way of borrowing. Deflation It is an act of reducing the amount of money in circulation. It also signifies a decline in the general price level, which leads to an increase in the purchasing power of money. Deflationary (ap It is the amount by which full employment supply e ceeds demand thus leading to reduction in the real value of a country(s output. Defunct Company It represents a dissolved organi*ation or a firm which has ceased to e ist. Delayed Delivery These are securities sold with prior understanding that delivery would not take place on the normal clearance date. Delayed Items These are items that represent transactions which occurred before the current accounting year. Delivery Date %ormally, it was the first day of the month during which delivery was to be made under a futures contract. Demand Deposit 2Ad#usted3 It is balance remaining after deducting the che$ues in process of collection from the total of a customer9s deposits in reporting member banks subject to immediate withdrawal but e cludes interbank deposits and government deposits. Demand Deposit It is an account in a commercial bank on which che$ues can be drawn and funds can be taken without giving any notice in advance.

Demand Draft It is a draft that is payable immediately upon sight or presentation to the drawee. Demand Loan It is a type of loan that can be called for payment at any time by the bank making the loan as such a loan has no maturity date. Demand .ortgage It is a type of mortgage that is payable on demand. Demand 6ote It is a type of note or mortgage that can be demanded for payment at any time by the holder of such instrument. Demand $rice It refers to the ma imum price that a buyer is ready to pay for a certain $uantity of a particular commodity or service. Demand5$ull Inflation It is a situation of inflation in which the price level increases as a result of plenty of money chasing too few commodities. Demoneti*ation It is an act of withdrawing a specified currency from circulation. It also denotes an action taken by a commercial bank of reducing the number of government bonds and securities. This leads to an increase in the value of deposit and paper currency, including central government notes. Demurrage It is an act of detention of a freight ship or car for a time period more than permitted for loading or unloading. Additional charges for detention are payable. Demurrer It is a method or a procedure in a litigation where the defendant agrees to the validity of all the plaintiff9s complaints but denies that the facts warrant a cause of action. Depletion Accounting It is an accounting branch which deals with natural resources, such as metals, oils, gas, etc, that could possibly be reduced to *ero over the years and pose particular problems in capital management. Deposit Ban%ing It is the activity carried out by a commercial bank dealing with deposits, receiving che$ues on other banks, remitting on che$ues forwarded for the purpose of collection, and paying out deposits by che$ue. Deposit Boo% It is the passbook of a customer of the bank that shows the sum of money deposited by him in the bank. Deposit Currency It refers to che$ues and other credit instruments that are deposited in a bank as the e$uivalent of cash.

Deposit Function It signifies the business of accepting money on deposit for safe&keeping and convenience. Deposit Insurance It is insurance taken in order to protect the depositor against the risk of bankruptcy of a bank or savings and loan institution. Depositary Receipt It is a device that allows dealing of foreign stocks on stock e changes, in the event the other nation involved does not permit foreign ownership of the stock of domestic firms. Depositor It is a name given to any entity or individual in whose name certain sum of money is deposited in a bank. Depository It is an individual or institution recogni*ed as one to be confided with something of value for safekeeping. Depository The term stands for a bank in which funds or securities are deposited by others, usually under the terms of a specific depository agreement. Depreciated Cost It is the book value of a fi ed asset derived by deducting from cost, the accumulated depreciation and other valuation accounts that have the effect of decreasing the original e pense to a recoverable cost. Depressed .ar%et It is a situation of depression in the market when the prices of goods or services are abnormally low. Derived Demand It is the demand for an item that grows out of the wish thus fulfilling the demand for other related items. Devisee ;e is one who receives tittle to real property by way of a will. Devisor ;e is the donor of a gift of real property by way of a will. Digested &ecurities It refers to those securities which are owned by investors who are not e pected to sell them at present. Dilution It is the effect of a reduction in earnings per share or book value per share. This is caused by the potential conversion of securities or by the potential e ercise of warrants or options. Diminis'ing Returns It is a situation in which e$ual amount of one or more factors of production are successively

applied to the remaining factors of production yet the additional application produces a smaller increase in production than the preceding application. Direct Debt It is debt incurred by a unit in its own name or an assumed debt. Direct arning These are earnings stated by a firm not showing any e$uity in the surplus earnings above dividend payments of units or affiliated companies. Direct !penditures These are payments made to recipients such as employees, contractors, suppliers, beneficiaries and so on. Disagio It refers to the charge made in order to e change depreciated foreign monies. Disbursement &c'edule It is a statement or a list in a tabular form that shows the amount to be disbursed on particular dates in accordance with contracts entered into a mortgage loan transaction. Disc'arge of Ban%ruptcy It is a legal order, which concludes the bankruptcy proceedings. Thus the bankrupt is relieved from all legal responsibilities for certain specified obligations. Disclaimer It is a clause in a document which renounces or repudiates the liability of an otherwise responsible party in the event of either noncompliance by such other party to certain conditions described in the agreement or some other specified e ternal conditions or losses incurred due to discrepancy in the goods delivered and the weight or count made by the shipper. Discount It refers to the amount of money deducted from the "face amount" of any instrument eligible for rediscounting. It also signifies the amount by which a preferred stock or any bond is sold below its par value. It also means the relationship of a currency to another. Discount Corporation It is any banking or financial institution whose business includes buying and discounting of trade and bankers9 acceptance, commercial papers, bills of e change and other eligible papers. Discount Loan It is a type of loan on which the interest and other charges are deducted from the face value of the loan immediately at the time of granting the loan. Discount .ar%et It is an open market for commercial papers and acceptances as different from bank9s discounts that is for only its own clients. Discounted "alue It is the current value of any future payment that is due or receivable. It is calculated on the basis of a given rate of interest.

Discounting t'e 6e)s The term signifies that when a stock9s price or the level of a major market indicator climbs or falls in e pectation of a good or bad occurrence, then barely moves when the actual development takes place and is announced, the stock is said to have "discounted the news". Discretionary Account It is an account in which the client gives his broker or any other authori*ed representative complete or partial authority to operate that account for the purposes of purchase and sale of securities or any commodity. Instructions may be given regarding price to be paid or received, timing, selection and other specified limits. Discretionary Fund It refers to the discretionary income increased by the amount of new credit e tensions that may be deemed disposable as a result of customer decision relatively free of past responsibility or burden of necessity. Discretionary Income It is that amount of money available for disposal after paying the necessary living costs. Diseconomies of &cale It is a situation which occurs when the costs of a business increases as a result of e pansion of business activities. Disinflation It is the outcome of a scheme introduced for decreasing the general price level by way of increasing the purchasing power of money. Disinvestment It signifies a reduction of capital goods. Disposable Income It is the net personal income of an individual available for consumption or saving and which is derived after deducting all kinds of ta es from the gross personal income. Distress &elling )elling because of absolute necessity. Distributes ;e is a person to whom something is distributed, more often applied to the recipient of a personal property under intestacy. Dividend Appropriation It is an amount declared payable out of retained income or the amount credited to a special reserve for such dividends. Dividend 0rder It is a form which directs the corporation to forward dividend che$ues to the address specified in the form. Dividend $ayout Ratio It is a ratio which is calculated by dividing dividends per share of common stock by earnings per share of common stock.

Dividend Reinvestment $lans It refers to a scheme in which customer9s dividends in a security are automatically reinvested by the bank acting as an agent. Do not Reduce The term is found in a securities limit order to buy or sell which means that the price of such securities should not be lowered by the amount of cash dividend on the e &dividend date. Dominion It is an act of separation and passing of power over the property by the transferor to the transferee in the event of transfer of property from one to another. Double Counting 2 ntry3 It refers to counting of the same $uantity twice when evolving a total since every transaction in book&keeping is entered two times. It also means a procedure used in ascertaining the gross national product. Double Indemnity It is a provision in a life policy in which if death of the insured is due to any accident then double the face amount of the policy is paid. Do) T'eory It is a theory of market analysis. It is based on the performance of the #ow ?ones industrial and transportation stock price averages. Dra)ing Account It is a certain sum of amount that is available to owners or salespeople to be utili*ed for e penses. )uch sum is then adjusted against future earnings. Drive in Ban%ing It is a facility offered by many banks in which teller9s windows facing the outside of the building or separate outside booths, are maintained for the convenience of the depositors. )uch a facility is offered due to traffic congestion, lack of parking space and such other time consuming reasons and is thus useful to the bank customer as he can drive up to a teller9s window. Dual Ban%ing <ertain banks are chartered by the state in which they operate and others by the national government. This permits dual banking, where each independent factor cooperates with the other to offer its body of customers complete banking services. Due to Ban% It stands for the tittle of a liability account in the general ledger including subsidiary accounts of funds that one bank has on deposit with another bank. Dumping It is an act of selling surplus of any item in foreign markets well below cost in order to hurt foreign competition. @overnment of many nations formulate anti&dumping policies in order to protect domestic sellers. Duopoly It is a type of industry in which there are only two business organi*ations selling identical items and both of them e ercise control over the market.

Duopsony It is situation where there are only two buyers for a similar item. Dutc' Auction It is a type of auction sale in which the auction starts with the highest price of an item and the price is then continuously reduced until a bidder answers favorably and buys.

arned Income It refers to income derived from sale of goods or from rendering services. It also includes pension and annuity income. arnest .oney It is the money given by one of the contracting party to another at the time of making of the contract in order to bind the contractee. Aarnest money is forfeited by the doner if he or she fails to carry out the contract. arnings $er &'are It is that portion of a corporation9s net income which relates to each share of that corporation9s common stock the one which is issued and outstanding. arnings $rice Ratio It is a ratio which is calculated by dividing the earnings per share of outstanding common stock by the closing stock market price 4or in absence of any sale, the midpoint between the closing bid and asked price7 on a day close to the date of publication of the earnings. asy .oney It means money available at low rates of interest and without much effort as a result of sufficient supply of a bank9s e cess reserves. C Abbreviation of e &coupon. conometric .odel It is a set of related e$uations that make use of various mathematical and statistical techni$ues in order to analy*e economic data such as essential $uantitative impact of alternative assumptions or government policies and also to test various approaches about the way the economy works. conomic It describes an action related to development of goods and services which are intended to satisfy a human condition. conomic Costs It represents the payments made to suppliers of items that are re$uired for manufacturing, in order to convince them to supply their resources in a specified activity. conomic $rofit It is similar to pure profit which means residual profit after paying the implicit and e plicit costs. conomic Rent It is the estimated rent which a property is e pected to earn in the present rental market. ;owever, the actual rent received may be more or less than the economic rent.

conomic &anction It is a sort of economic pressure that is used to compel another nation or group of nations in order to comply with the international agreement. conomics It is a branch of social sciences which is concerned with the description of events dealing with production, distribution, e change and consumption of goods and services. ffective Debt It signifies the total debt of a firm that also contains a significant value of annual leases or other payments which are e$uivalent to interest costs. ffective !c'ange Rate It is an e change rate actually paid or received by the public on the spot. It includes any banking commission applicable to it in addition to any ta es or subsidies on the e change transaction. FT It is an abbreviation of Alectronic %und9s Transfer. lasticity It is the impact of price and other related factors in the market that affect the demand or supply. It also signifies the competence of a financial institution to satisfy the credit and currency demands during times of e pansion as well as to restrict the same during times of over e pansion. lectronic Cas' Register It is a type of cash register in which the electromechanical parts are replaced by electronic circuitry. lectronic Funds Transfer &ystems These are computeri*ed systems that e ecute an e change of value between two parties. They process financial transactions and also process information about financial transactions. ligible $aper These are certain negotiable instruments, bills, securities, etc that are accepted by financial institutions for rediscounting purpose. mbargo It is a restriction of handling certain goods. It also signifies a condition that results into non& acceptance of freight at a specified location, due to certain crisis at the point of destination. ncode It is an act of placing magnetic ink characters of the A !3B type font specified by the ABA on the face of a document during the processing of items through an encoding machine. It also means applying a code, fre$uently one consisting of binary numbers, to represent individual characters or group of characters in a message. ncumbrance The word, also spelled "incumbrance", means a claim or interest in any property whose transfer or sale cannot be stopped inspite of its depreciating value. nd .oney It is special fund created to meet the cost of any project e ceeding the original estimated cost.

ndo)ment It is a gift to an institution made for a specific purpose. The giver of gift is allowed to declare deduction on his ta es. ndo)ment Insurance It is a kind of life insurance where a certain sum of money is paid as premium for a specified period of time during which the insurance is covered. The insured collects the face value of such policy at the end of the premium period if he survives beyond such period. ndo)ment Term It is the period for which the endowment contract e ists. In other words it is the period of time from the date of issue to the date of maturity of an endowment contract. 1uation $rice It is a price determined through competition in a market at a given point of time such that both demand and supply are e$ual at this price. 1uilibrium $rice It is a price in the market at which the profitability of the organi*ation is ma imum and which is determined by intersection of demand and supply curve. 1uilibrium 8uantity It is the $uantity of goods at which the profitability of the firm is ma imum and which is determined by intersection of demand and supply curve. 1uity Funding It is a combination of mutual fund shares and insurance in which the buyer purchases mutual fund shares and pledges the same as security for the loan used to defray the cost of premium on an insurance policy. 1uity Transaction It is a transaction that results in an increase or decrease of net worth or involves the transfer between accounts making up the net worth. 1uity Turnover It is a ratio for measuring the relationship between sales and the e$uity capital for computing the rate of return on common e$uity. scalator Clause It is a provision according to which the contract price can be revised for increase in case of unforeseen contingencies. sc'eat It signifies reversal of property to the government. ,eversal takes place when the person dies intestate or when the property is abandoned. sc'eat La) It is a law relating to reversion of property to the government due to failure of persons having lawful title to hold the same. scro) It is an agreement in writing for the purpose of allocating funds or securities deposited by the

giver or grantor to a third party 4the escrow agent7, for the eventual benefit of the second party 4the grantee7. scro) Agreement It is a settlement according to which two parties assent to deposit a sum of money with a third party for conditional delivery under stipulated circumstances. state It means a right, tittle or other interest in property, whether real or personal. state Duty It refers to ta payable on property of a deceased owner. urobond It is a medium&term bond released for sale in Auropean markets. The bond is released by any non&Auropean company or by any 1.). urocurrency It is money of various countries that is deposited in Auropean banks and used in the Auropean financial market. urodollars It means Auropean demand for 1.). #ollars. ven Lots It signifies selling of number of stock shares in units of !"" or multiples of !"". ven up It is a securities term which means that there e ists an evenly divided balance of securities buyers and sellers. !5all It means a situation where the seller inspite of selling a security, reserves the right to all pending benefits. !c'ange Current It is the current rate of e change. !c'ange of &pot for Futures It is an act of simultaneous e change of a determined $uantity of a cash commodity for the similar $uantity in futures, generally because both parties carry opposite hedges in the same delivery month. !5Coupon It means without the coupon. !5Dividend Date It is a specified day on and after which the right to receive a current dividend is not transferred automatically from seller to buyer. !'aust $rice It is that price at which a broker forcefully sells a security which was margined and afterwards dropped in price.

!pired Account It is that account which has an unpaid balance due although the initially agreed period for payment has elapsed. !plicit Interest It refers to the sum of money or goods paid on a loan. !ternalities These are outside benefits or costs for which no compensation is granted. !tortion It is an act of grabbing something of value from someone else by coercion. %orce.

F
Facsimile &ignature It is the replica of a signature that is mechanically imprinted on an instrument such as bond, security, che$ue etc. Factor The term stands for a commission agent who is authori*ed to sell goods and services and receive payment on behalf of the principal. Factors These are limited agents who purchase accounts receivables from small firms at a discount. Fail It signifies a broker9s incapacity to deliver stocks that he is liable to deliver to another broker within the stipulated time period of five business days. Thus one broker9s failure to deliver stocks results in another broker9s failure to receive stocks. Fair $rice It is a price which results in a fair yield on the funds invested. It also means a price that has a suitable markup on goods or services sold so as to earn a reasonable profit. Fairy (odfat'er The term stands for a potential business supporter. Fat &na%e It signifies a monetary union in order to form a Auropean fi ed system. Fee It is a compensation for services rendered. It also stands for an inheritable property in land. Fiat .oney It is the money having no metal security which is circulated by government. Fiduciary It represents an association, individual or a corporation which is entrusted with certain property to be held under a trust as per the trust agreement.

Fiduciary Accounting It means estate accounting. It also refers to maintaining accounts of property in the hands of a trustee, e ecutor or an administrator. Fiduciary .oney 2or &tandard3 The term denotes currency which is not completely secured by any precious metal. Fiduciary Return It is an income ta return made by a fiduciary on behalf of a trust or estate. Fill 2or 9ill3 0rder It is an order that must be filled instantaneously or cancelled. Finance Bill It is a draft drawn by one bank on a foreign bank against securities that are maintained by the overseas organi*ation. Finance :nit It is a nondelivery postal branch concerned with providing financial services and acceptance of mail. Finance- $ublic It is a uni$ue branch of finance that deals with the arrangement of means of payment to discharge public or government e penditures. Financial !pense It is the interest cost on long&term debts. To be distinguished from finance charge, which means cost of a loan. Financial .ar%ets These are money and capital markets of the economy. Financial Ratios These are ratios that show the relationship e isting between various balance sheet items and items appearing in income accounts. Fire)or%s It signifies a swift increase in the prices of a security or a group of securities. Firming of t'e .ar%et It refers to a time period when the prices of securities tend to become steady near a certain level after a downward movement. First Lien It is the first mortgage. First .ortgage It is the mortgage on property which has priority over all other mortgages. First 6otice Day It is the first day of a specified month of delivery on which transferable notices can be dispatched for delivery.

First $referred &toc% It refers to the stocks carrying dividend that are preferred over the common stock of the company and are positioned ahead of the second preferred issue. Fiscal Dividend It is the increase in governmental revenues due to an e pansion in gross national product at any given level of ta rates. Fi!ed Budget It is the budget of a corporation predetermined for a specific period of time which is not subject to modification during the budgetary period. Fi!ed $rice It is the lowest sale price of a new issue usually fi ed by its underwriter below which the security cannot be sold or purchase cannot be made. Flagging an Account It is an act of temporarily suspending activities on an account until brought up to date or for any other appropriate reason. Flat It denotes with no interest. It also refers to the price at which a bond is traded and it also includes compensation for all unpaid accruals of interest. Flier It connotes a speculative purchase of investment by a person usually not involved in speculation or in active trading in the market. Float It indicates that portion of a new issue which has not yet been procured by the public. The term also depicts the amount of funds that are in the process of collection and represented by che$ues possessed by one bank drawn on other local or out of town banks. It also signifies the value of che$ues covered by the %ederal ,eserve but which are not collected by the %ederal ,eserve from the bank on which the che$ues were drawn. Floating Currency It is the currency whose value is determined by market forces. >alue of such currency in terms of foreign currency is not kept stable. Floating &ecurities These are securities retained in the name of a broker and purchased for speculation and resale. It also stands for stock that is ready for sale in the open market. It also refers to new issues of securities, which have not been completely purchased. Floor It is the large trading area in the e change where stocks and bonds are bought and sold. Floor Bro%er ;e is the member of a stock e change who e ecutes orders of buying and selling of listed securities on the floor of the e change.

Flotation It signifies the launching an issue of securities or a procedure of providing funds for a business activity. Force Account It refers to a method applied in construction or maintenance of fi ed assets in which personnel of the governmental unit itself are used instead of outside contractor. Forced Billing It is a method employed to safeguard payments for freight delivery when bill cannot be found. Foreclosure It is a legal procedure whereby a mortgagor of a property is bereaved of his or her interest in it. )uch a deprivation is brought about by way of a court&administered sale of the property. Foreign Currency Account It is an account maintained in a foreign bank in the currency of the nation in which the bank is located. Forfeiture It is loss by default of property as a penalty for failure to comply with legal provisions and as a compensation for the losses or damages sustained. For)ard Buying It is an act of buying an actual or spot commodity but the delivery is for the future and not current delivery. For)ard !c'ange It purchase or sale of a foreign bill of e change at a certain price payable at a given date. For)ard .ar%et It is a market dealing in futures where purchase or sale of securities, foreign currencies, etc is done at a fi ed price at a given future date. For)ard $rices It is a proposition for reducing price instability and encouraging better stableness in farming by using the price system as an adjustment device. For)arding It is an act of carrying information from one page to another in an account or journal. Foul Bill of Lading It is a bill of lading that identifies shortage or damage which e isted at the time of shipment. Fourt' .ar%et It signifies purchase and sale of unlisted securities directly between investors. Fractional Currency It is any currency which is smaller than a standard money unit. Fractional Lot A lot that is less than a round lot.

Franc'ise It is a right or privilege granted to a dealer for the distribution of a manufacturer(s output. Franc'ise Clause It is a provision according to which payment shall not be made until and unless the loss or damage e$uals or e ceeds a stipulated amount, known as the "franchise". Franc'ise Ta! It refers to ta levied on a corporation to conduct business under its corporate name. Fraudulent Conveyance It is a conveyance of property entered into by a debtor with the intention of deceiting creditors. Free and 0pen .ar%et It is a type of market where demand and supply are freely e pressed in terms of price. Free nterprise It is situation where a business can operate or function competitively without much intervention from and restrictions of government. Free .ar%et It is a type of market where there e ists un&restricted movement of items in and out without been interrupted by tariffs or other trade barriers. Free $ort It is a port where no duties are payable on either imports or e ports. Free Riding It signifies an act of withholding new stocks by brokers, which are e pected to climb higher than the initial public offering. It also refers to a transaction, forbidden by law, where securities are purchased and $uickly sold without providing personal funds for the original purchase. Free*e It signifies fi ing of prices at present levels usually during wartime or national crisis. Fro*en Account It is an account from which monies cannot be withdrawn unless a court order or legal process makes the account available for withdrawal. Fro*en Asset It refers to an asset which cannot be put to use by its proprietor on account of pending or on& going legal action. Full Coverage It is a type of insurance coverage which provides for payment of losses in full without application of a deduction but subject to the limit of the policy. Full Lot It is a bunch of !"" shares of stock traded on the Bew 0ork stock e change. Full5&ervice Ban% It is a commercial bank which is competent to meet all financial needs of the banking public.

Functional Costing It is a cost accounting system in which the costs are classified by allocating them to the various functions performed such as warehousing, delivery and so on. Fund It is any asset that is set aside by an organi*ation for a particular purpose. It also signifies cash, securities and other assets deposited with a trustee or an administrator for e panded as interpreted in the formal contract. Fund Accounts It represents all those accounts that are re$uired to present the financial operations and financial position of a fund. Fund Balance It represents the surplus of the assets of a fund over its liabilities and reserves. ;owever in respect of funds subject to budgetary accounting, fund balance prior to the end of a financial period represents the e cess of the assets of the fund and estimated revenues for the period over its liabilities, reserves, and appropriations for that period. Fund Balance &'eet It is a balance sheet for a single fund. Funded Debt These are the interest&bearing bonds of debentures issued by a company. It may include long& term loans from bank but in no case comprises of short loans or preferred or common stock. Funded Deficit It is a deficit that is eliminated by way of sale of bonds issued for that purpose. Future Income It signifies some income which is e pected to be reasonably assured for some time to come. Futures It refers to buying or selling of foreign currencies on the basis of a rate $uoted as of some future date. It also stands for those contracts in which sale and delivery of commodities at some future time are made with the e pectation that no commodity will be received immediately. Futures Call It refers to a transaction of sale of commodities in which delivery is made on any trading date for a specified month as re$uested by the seller. Futures !c'ange It stands for an organi*ation which is created for the purpose of trading of commodity futures. Futures .ar%et It is any commodity e change that trades in futures.

(
(alloping Inflation Also known as runaway inflation, it characteri*es rapid and unlimited increase in prices. If such inflation is not controlled then it could result in a major economic crisis in the country.

(arbage It denotes undesired and pointless data in computer memory or on tape. (arnis'ee ;e is an individual on whom a garnishment is served. In other words he is the person or debtor possessing certain property or money which the creditor wishes to ac$uire to satisfy a debt due to the creditor by the debtor. (arnis'ment It is a declaration from a court instructing an employer to hold back payments due to an employee by way of wages and to pay such sum of money to the court or the creditor to whom the employee is liable to pay up till a given debt is discharged. (at'er in t'e &tops It refers to selling of a particular security in ade$uate $uantity with the objective to reduce the price to a level where many stop orders are known to be entered. (ATT Abbreviation of @eneral Agreement on Tariffs and Trade. (eneral Ban%ing La) It refers to the banking law prevalent in a state under which the banks established in that state are permitted to do business. (eneral 1uilibrium Analysis It is an economic scrutiny in which interplay of all markets is given due consideration. (I(0 The abbreviation stands for (garbage in, garbage out(. It signifies that unreliable and useless information produce nothing but e$ually unreliable and useless results. (iro It is a payment system in which the account holder of a bank directs his bank to transfer funds directly from his account to the creditors account named and also notify the creditor about the transfer. (o $ublic It indicates raising of money for a corporation through offering stock for public sale. (oing $ublic It is a situation in which a corporation(s shares become accessible on a major e change. (old Bullion &tandard It is a monetary standard according to which the national unit of currency is defined in terms of a stated gold weight, gold is preserved by the government in form of bars rather than in form of coins, there is no circulation of gold within the economy, and gold is made available for purposes of industry and for international dealings of banks and treasuries. (old !c'ange &tandard It is a universal monetary agreement whereby money include fiat national currencies that can be transformed into gold at determined price ratios.

(old &tandard It is monetary standard according to which currencies of all nations are fully backed by gold. @old is used for discharging liabilities on foreign account. (ood .oney If two kinds of money with e$ual nominal value are in circulation, it is a general tendency of public to prefer one over the other on account of metal content and hoard the "good money" and spend the "bad money" , thus driving the good money out of circulation. (raft It refers to a financial or other gain obtained through the abuse of a person(s position or influence. (rain !c'anges It is a type of commodity e change which trades in spot and futures of grain. (rantee ;e is the person entitled to receive title to property under a deed or to whom a grant is made. (ranter ;e is the person who e tends credit. (rantor ;e is the person making a grant or e ecuting a deed giving up his title to property. (raveyard .ar%et It is a type of securities market in which those who are in cannot come out and those are out cannot get in. (ravy It stands for money that is easily earned or money which is in e cess of what is e pected. (ray .ar%et It denotes sources of supply from which scarce items are bought for rapid delivery at a premium well above the usual market price. (reen $o)er It signifies the power of money. (res'am;s La) It describes the fact that bad money have a tendency to drive out good money. It also refers to the manner in which people safeguard themselves from loss by spending money of disputable value and retaining money of better value. (ross Bonded Debt It is the total amount of direct debt of a governmental unit denoted by outstanding bonds before deduction of sinking fund assets. (ross C'arge It is the ratio between the interest charge on a discount interest loan and the discounted amount disbursed to the borrower. (ross Debt It is a sum total of all long&term credit obligations incurred and outstanding, whether backed by

government(s full faith and credit or non&guaranteed, and all interest&bearing short&term credit obligations. (ross Deposits It represents all deposits including all forms of time and demand deposits, without any e clusions or deductions. (ross 6ational $roduct It is the total retail market value of all items and services produced in a country during a specified period, generally one year. (ross &avings It is the sum of capital consumption, and personal and corporate savings. (ross &pread It is a banking term that is used to determine underwriting fees. (ross ,ield It is the gross return obtained from an investment before making any deduction on account of costs and losses involved in procuring and managing the investment. (roup Ban%ing It is a form of banking enterprise whereby a group of e isting banks form a holding company. The holding company supervises and coordinates the activities of all banks in the group. The holding company holds a majority of the capital stock of each bank in the group. (ro)t' in arnings $er &'are It is the annual percentage growth in primary earnings per share for the restated five&year period that ends on #ecember 3! and based on the least&s$uares method. (uaranteed &toc% It is the usually the preferred stock on which dividends are guaranteed by another company. (uerrilla Financing It stands for loans that are devised on their own outside customary channels. It is a strategy to protect an individual seller who lends money privately to the individual buyers who might get saddled with a risky, illi$uid asset when cash comes in gradually as the buyer pays off the note 4 4A The abbreviation stands for House Account. 4all .ar% It stands for the impression made on gold and silver vessels introduced in the commencement of the fourteenth century in England to examine the quality of the metal used. 4alsey $remium $lan It is a type of incentive wage plan in which a guaranteed wage is provided in addition to an extra bonus for production in excess of the standard.

4ammering t'e .ar%et It refers to continuous selling of securities by the speculators functioning on the short side. Such speculators are of the opinion that prices are overblown and that liquidation is impending. 4ang50ut Loan It is a type of loan that continues longer than its lease period. 4ard Cas' It stands for metallic currency. It is different form paper money. 4ard Loan It is a type of foreign loan that is payable in hard money. 4ard .oney 2Currency3 It has several meanings such as coins as distinguished from paper currency currency of a country that has stability in the country and also abroad. It also signifies a circumstance in which interest rates are high and loans are difficult to procure. It is similar to dear money. 4ard &ell It is an endeavor to sell goods or services in a combative and unpleasant manner. 4C The abbreviation stands for holding company. 4edge It means to offset. It also connotes a security having offsetting qualities. 4edge Fund It refers to an alliance of persons who pool their resources for the purpose of investment. 4edger He is an individual who is not inclined to ta!e a ris! of critical loss in his own cash position and ta!es a counterbalancing position in order to evade or decrease loss. 4edging It is a sort of economic insurance adopted by dealers in commodities and securities manufacturers and other producers in order to prevent loss due to price fluctuations. 4idden Ta! It signifies a tax that is included in the price of goods and services but is not easily perceivable by the payer of the tax. 4iggling Also referred to as haggling the term indicates a situation in which a third price satisfying both the buyer and the sellers is arrived at

after a bargaining between the buyer offering for a low price and seller as!ing for a high price. 4ig' Credit It refers to the highest amount of credit extended to a particular customer at one time. 4ig' Finance The term signifies applying funds of some other person in a speculative manner such that it may result in a loss to the owner of the fund. It also means borrowing to the maximal extent on one"s credit. It also refers to extremely complex transactions. 4ig' Flyers These are speculative securities that are high#priced and move several points up or down in a trading day. 4it t'e Bid It indicates selling a stoc! at the highest bid price quoted for such stoc!. 4olding5t'e .ar%et It implies purchasing a sufficient quantity of stoc! in order to minimi$e the decline in the price of a security. 4omogeni*ation It is a situation of blurring of the conventional differences among a country"s financial institutions where ban!s thrift institutions and credit unions have moved onto each other"s turf but increasingly are facing stiff competition from non regulated nonfinancial institutions. 4ori*ontal .erger It is a combination formed from merger of two or more business producing the same goods or services. 4ori*ontal $rice Fi!ing It is an agreement made among competitors at same levels of distribution regarding prices. 4ot Issue It represents a stoc! that is in great demand the first time.

generally when sold for

4ot .oney It is money obtained through illegal means or means of suspectable legality. 4ouse Account It stands for an account that is created by a bro!erage company for its own use. It also denotes an account belonging to a client that has not been nor ever may be assigned to a firm"s representative.

4ouse Bill It is any bill of exchange that is drawn by the central or head office of a concern against a branch or affiliate. 4ouse of Issue The term stands for an investment ban!ing firm which is performing functions of underwriting and distribution. 4uman Resource Accounting It refers to reporting and emphasi$ing on the pertinence of s!illed and loyal employees in an organi$ation"s earning picture. 4us' .oney It is a bribe given in order to assure silence of the receiver. 4ybrid Basis Accounting It is system of accounting which combines cash basis and accrual basis of accounting.

I
Immediate Annuity It represents an annuity which commences one month, one $uarter, half a year, or one year after the effective date of payment. Immediate Beneficiary ;e is the beneficiary of a trust entitled to receive immediate benefits from the trust property. The benefit may or may not be limited to income. Immediate Delivery It signifies an arrangement according to which an investor selects mortgages for delivery, acceptance, and payment within a limited period of usually 3" days. Immigrant Remittances It refers to funds of immigrants which are sent out of the country. Impaired Capital It is a situation when the capital of the firm is less than the stated capital. Impaired Credit It refers to a situation when the credit given to a concern is reduced as a result of bank(s decision that its credit worthiness has weakened. Imperfect Competition It refers to a situation under which prices can be changed by one or more persons because of abnormal market conditions or undue advantages secured by some buyers or sellers. Implicit $rice Deflator for (ross 6ational $roduct It is a measure of the average change in market prices of goods and services represented in the national income and product accounts, in comparison to average levels in a base period. Impost It is a ta , usually an import duty.

Imputed It is an estimated value when no cash payment is made, in order to ascertain that value. Imputed Cost It is a cost which is not specified but is deemed to e ist by the policies of the organi*ation. In &ig't It is a commodities term which describes the $uantity of goods re$uired to be delivered at a specific location. Income Clearings It refers to che$ues and drafts received from other banks but in the same city. Income Debenture It is a bond issued by companies on which interest is payable only when earned by the company. Income Deductions These are deductions made from income such as interest on long&term debt, amorti*ation of debt discount, e pense and premium&net, ta es assumed on interest, interest on debt to associated companies, other interest charges, interest charged to construction, miscellaneous amorti*ation and income deductions. Income Distributions It is the manner in which personal income is apportioned all over the various socio economic levels in the country. Income Dividends It refers to dividends paid to mutual fund shareholders, and short&term capital gains earned on the fund(s portfolio securities after deducting operating e penses. Income $roperty It is the property purchased or owned for a financial return e pected. /roperty may be commercial, industrial or residential. Income Return It refers to monies earned from an investment over a the period of one year. Income "elocity of .oney It signifies the average number of times each year that a rupee is spent on purchasing the country(s annual flow of final goods and services. Indemnity It refers to an option to buy or sell a particular $uantity of a stock at a certain price within a given period of time. It also means a compensation for damage or a guarantee against losses. It also refers to a bond for protecting the insured against losses from others failing to fulfill their obligations. Indent It is a re$uest made by a buyer to an importer to import specific items at a certain price. The importer is allotted a time period within which he can accept or reject the offer.

Indenture It is an agreement in writing under which the debentures are issued. It comprehends the maturity date, interest rate and other terms of issue. Independent Ban% It is a bank operating in one locality and whose directors and officers are usually local to the community. Independent Bro%er These are members on the floor of the stock e change e ecuting orders for other brokers who have more business than they can handle at a given point of time or for firms not having their e change member on the floor. Indicated ,ield The term portrays the current return or yield to maturity of stocks and bonds. Ine1uities It refers to an ine$uality in the rates or conditions paid or provided for similar work in an industry in comparison to those e isting in the industry. Inflation It refers to an increase in the price level resulting in a decrease in the purchasing capacity of the monetary unit. Inflation Accounting It is a practice of bookkeeping which also shows the impact of inflation on the assets and profits of the organi*ation. Inflationary (ap It is the amount by which government and private spending e ceeds the amount re$uired to provide a staunch price level and full employment. I$0 5 Initial $ublic 0ffering The first public sale of common stock, usually by a privately owned company that wants to go public. After the I/', the publicly held shares may be traded on a stock e change Installment Cas' Credit It refers to the money loans granted to a person which is repayable in installments over a specified length of time. Installment Credit It is a sort of consumer credit which involves regular payments by the buyer as per the payment schedule fi ed. It gives seller the right to reac$uire the sold item in case of buyer(s default in payment of installment. Installment Financing It is sort of financing activity in which the repayment of an obligation is by payment of fi ed amount at regular intervals. Installment &ales Credit It is a one&shot loan usually granted to purchase costly items such as cars or other consumer durable items or appliances. )uch an arrangement re$uires a down payment and written contract

for the balance due including interest and service charges. ,epayment is made in e$ual installments at regular interval of time specified in the contract. Institutional Investor It refers to a company which has invested substantial funds in securities. Insurance Coverage It signifies the total amount of insurance that is carried. Insured Life ;e is the person on whose life the policy is issued. Intangible Ta! It denotes a state ta levied on all deposits made in individual accounts in a bank but e cludes certain e empted items. Integrated Company It represents an organi*ation which has combined its diverse units or items in order to widen its market territory to ac$uire efficiency, and also to improve costs. Interest 0nly Account It connotes an account that has in the last two calendar months made one or more payments of which nothing was applied to principal. Interest &'ort The term represents the amount by which a payment is insufficient to pay off the accrued interest on an account. Interest Table It is a mechanical inde ing device or chart which gives independent calculation of simple or compound interest, the discount or present value, and the like, on various amounts for certain or various time periods. Internal Debt It is the debt of a nation. Internal conomies of &cale These are factors arising from physical economies or diseconomies and leads to increase or decrease in an organi*ation(s long&run average costs or scale of operations resulting from si*e adjustments with the company as a product unit. Internal Items It is the debit or credit note devised by or for an officer of the bank in order to adjust balance in the general ledger and for a customer9s account. Intervention Currency It refers to the foreign currency that a country uses to ensure by means of official e change transactions that the permitted e change rate margins are observed. Intervention is usually through purchases and sales of foreign currency by the central bank or e change e$uali*ation fund in domestic dealings with commercial banks. Intestate It means not having a valid will.

Intestate &uccession It refers to descent and distribution of property of a person who dies intestate that is without making a valid will. Intrusion It means forcefully taking possession of another9s real property. Inventory Financing It is an effort to arrange the necessary capital for a firm by borrowing funds with inventory used as security. Inverse Demand $attern It is a situation which e ists when price and volume vary at the same time and more is sold at a high price than a lower one. Inverted .ar%et It is a futures market of commodity where distant&month contracts are selling lower than near& month contracts. Investment Ban%er It stands for an intermediary between the corporation issuing new securities and the public. In other words the investment banker acts as an underwriter of the issue. Investment Ban%ing It means financing of the capital re$uirements of an enterprise rather than the current working capital demand of business. Investment Club It is a voluntary organi*ation of people who combine their funds to set up an investment portfolio, which it is hoped, will give members a better return per individual than each would have e pected separately. Investment Credit It is the credit facility e tended to an organi*ation for the purchase of fi ed assets. Investment $ortfolio It is the list of securities owned by a bank, an individual, or a business enterprise. Investors Funds It refers to retail or repurchase agreements which are not funds at all. Invisible 4and The e pression depicts the capability of the perfectly competitive market to bring about the greatest benefit for all, even when all merchants selfishly ma imi*e their own profits. Invisible Trade Balance It represents the trade balance created by import and e port of services unlike that created from import and e port of goods. I0: The acronym stands for "I owe you". It is an informal agreement in writing, acknowledging a cash debt.

I$ The abbreviation stands for issue price. Iron La) of +ages It is a concept that wages tend to e$ual what the employees needs to maintain a subsistence level of living. Irregular &avings Account It is a savings account with a contractual variation regarding time, notice, systematic buildup, additional earnings, earnings penalty, or similar provision.

J
Job Account )imilar to contract account which is prepared for a specific piece of work, debited with all charges for material and labor and other e penses incurred and credited with the income or contract price along with any other allowances or credits. Job Analysis It is methodical scrutiny of the specific tasks re$uired for a particular job, set of conditions, rate of pay, and so on. In other words, it refers to a systematic analysis of the personal $ualities re$uired to perform a particular job. Joint Contract It is a deal entered into by two or more persons with the third party to perform jointly upon a contract and such persons are under joint obligation to the other party identified. Joint +ill It refers to a single will of two or more individuals. Joint5&toc% Ban%s It is the name given in Angland for all commercial banks but does not apply to Bank of Angland, private banks and so on.

9
9ameralism Also spelled as "cameralism", the term refers to a concept of mercantalism which is concerned with the production of wealth by the state and how the wealth is used. 9eynesian conomics It is system which shows that national income and employment are dependent upon real investments and consumer spending. 9iting &toc%s It is an act of manipulating stock prices to unprecedented high levels. 9noc%ed5Do)n $rice It denotes a lowered or reduced price that has been arrived at by lowering the seller(s asking price for the purpose of making the sale.

Labor conomics It is a speciality in the field of economics that is primarily concerned with the link between the worker and his or her job. It covers areas such as supply of labor, hours and wages, conditions of work, and other forces relating to the general economic welfare of the worker. Labor T'eory of "alue The philosophy that describes the e ploitation of workers in a capitalist system. Laisse*5Faire The term describes a leadership style of minimal involvement. It also refers to a policy of the classic capitalistic model, recommending that government should not interfere with the economy. Lamb The term denotes an ine perienced speculator. Lame Duc% The jargon stands for a speculator whose venture has failed. It also means a member of a stock e change unable to discharge his debts. It also signifies an individual who goes out of office very often and is thus thought to be unproductive or helpless. Land Ta! It is the ta imposed on the ownership of real property i.e. property ta . Land "alue Ta! It is the ta levied on value of land only e cluding structures or agricultural produce on it. Lapse It refers to a failure on the part of the insured to make payment of premium on due date or within the days of grace allowed. It also refers to the cessation of a right by the passage of time, as and when the grace period of a mortgage ends or the date of a lease has passed. Last Trading Day It is the last day during which trading in a futures contract is allowed during the delivery month. La) of Increasing Costs It is a concept which states that the average total unit cost in a production process increases with increase in the volume of a firm. La)s of Descent It is the law which governs the descent of real property from ancestor to heir. Lease 2Regular or Commercial3 It is an agreement to obtain and use space for a definite period of tenure at a fi ed monthly rent. Legacy 2Be1uest3 It is a gift of personal property made in a will. There are four types of legacy, which are as follows. 4i7 specific legacy which is a gift of a particular piece of property. 4ii7 general legacy refers to a gift of money in a certain sum. 4iii7 demonstrative legacy which is payable in cash out of a particular designated fund. and, 4iv7 residual legacy is one which includes all the remaining personal property after the payment of all obligations, charges against the estate, and all other legacies. Legal Asset It is any property which can be used for discharging a debt.

Legal Investments These are investments permitted by state laws to be made by savings banks, insurance companies, trustees, and other fiduciaries. /ermission has to be seeked from the state in which they are domiciled or the jurisdiction under which they operate or serve. Legal .onopoly It is a monopoly right granted by the government to a privately owned organi*ation. ,ight is for functioning in a specified market only and under strict control and pricing by the government. Legal Tender It refers to any money lawfully recogni*ed to be payable for discharging a debt by a debtor to a creditor, who has to accept the same in discharge of the debt unless an agreement to the contrary is made which specifies payment of another type of money for discharging the debt. Lender of Last Resort It is the name given to the central bank as it will lend to individual banks in case they e perience large withdrawals. Lending &ecurities These are securities which can be borrowed by a broker representing a short seller. Letter of Attorney It is a document showing a power of attorney. Leverage It signifies the effect on the per share earnings of the common stock of a corporation when large sum of monies are to be paid as bond interest and+or preferred stock dividends before the common stock is entitled to share in earnings. Leverage Contract It is the privilege to purchase or sell a commodity at an agreed price on a specified future date without rigid variation in margin re$uirements of recogni*ed commodity e changes. Leverage Factor It is a ratio of working assets to price of the leverage security. Leverage &toc% It denotes the junior security of a multiple&capital&structure company, generally a common stock. The term may also be applied to a warrant, or to a preferred stock if the latter is preceded by funded debt or bank loans. Levy It connotes a ta assessment. It also means a demand made on the members of a company for a contribution of added working capital or to make good on a loss. Lien $lacement Fee It is the cost of recording with the secretary of state the security interest of a bank on the title of any new or used car. Lien T'eory It is a philosophy of real estate law which states that a mortgage grants a claim to, or lien on, the mortgaged property to the mortgagee.

Life Annuity It is a contract providing an income for life. Life Beneficiary ;e is the person receiving benefits from an estate, generally in the form of income, during his lifetime. If the estate consists of real property then the beneficiary is called as life tenant. Life Contingency It is the probability of living or dying. Life Cycle 4ypot'esis It is a theory of the saving decision which states that consumers save in order to maintain a stable level of consumption in the future. Life state It refers to an estate in real or personal property which terminates on the death of the owner. The future of the property after owner9s death is provided for when the estate for life is prepared. Limited $ayment Life It is sort of policy which provides permanent protection, however, premiums are to be paid only for a stipulated, limited number of years. Limited $o)er of Appointment It signifies power of the donee to pass on an interest in a property that is limited in some way. )uch limitation may be in the form of time within which he must e ercise the power or for whom he can e ercise the power and so on. #onee in the present case is the person who has the power. Limited $rice 0rder It is an instruction to buy or sell a certain amount of a security at a stated price or at a better price as per the guidance given in the order. Line of Credit It is an agreement between a bank and a customer whereby the bank agrees to lend funds to the customer up to a certain ma imum amount. Line of Discount It is the ma imum credit e tended by a bank to a retailer on the basis of his accounts payable, which the merchant discounts with the bank. Line 0rgani*ation It is a form of company structure in which top officials have total and direct authority and subordinates report to only one supervisor. It is the oldest and least comple company structure. Lin%age It indicates the pressures an industry can e ercise on the rest of the economy. Li1uid It signifies capacity of being readily converted into cash. Li1uid Ratio It is the ratio of readily available current asset to current liabilities.

Li1uid &aving These are savings of individuals in form of cash or items that are easily and $uickly convertible into cash. Li1uid &ecurities These are securities such as stocks, bonds etc that are easily marketable and converted to cash. Li1uid Trap It is a concept which states that at some low interest rates, the speculative desire for cash becomes infinitely elastic. Li1uidated Damages It is payment by all parties of an agreed amount as damages in view of breach of contract. Li1uidating Dividend It is the declared dividend in the closing of a firm to dispose off the assets of the organi*ation to $ualified stockholders. Li1uidating .ar%et It is a type of securities market where combative selling takes place at comparatively low prices. Li1uidating "alue It is the e pected value of a particular asset which will be received in case of li$uidation of a business. Li1uidity It signifies the capability of the market in a particular security to absorb a reasonable amount of buying and selling at reasonable price changes. It also means the speed with which the assets of a business can be converted into cash without loss i.e. solvency of the business. Li1uidity $reference It concept stating that people prefer to hold their assets in form of cash rather in less li$uid form. Listed &ecurities 2&toc%s3 )tocks or securities which have been admitted for the purpose of trading on a stock e change and whose issues have fulfilled in every way with the listing stipulations of the e change. Lister The term stands for a broker who sells property from a listing. Listing It refers to discretion of a seller to offer a property with one or more real estate brokers in which commission will be paid to the broker successfully selling the property. Load It is that part of the offering price of shares of open&end investment companies which cover sales commissions and all other e penses of distribution. Loading It is the e cess of the gross premiums over net premiums. It also refers to amount added to an installment agreement to cover selling and administrative overhead, interest, risk and so on or monies added to the prorated market price of underlying securities, representing fees and overhead.

Loan &toc% These are securities advanced as loans to a broker or short seller to comply with the terms of a short&selling contract by delivering shares. Loan "alue Ratio It is a ratio that shows a property9s appraised value in proportion to the amount of the mortgage loan. Loan "ouc'er It is a document demanded by certain state laws which gives details of distribution of funds covered by the face amount of the note, discount or loan charges, fees, insurance premiums, rebates, and che$ues issued. Loanable Funds T'eory of Interest It is a conception that interest rate is determined by the demand for, and supply of, loanable funds only and not all money. Lombard Loan It is a type of loan forwarded by the central bank which is secured by collateral such as stock and bonds. Long The term signifies ownership of stocks. It also means retaining a substantial amount of a security or commodity in e pectation of a scarcity and price rise. Long 4edge It means purchasing futures that are made as a hedge against the sale of a cash commodity. Long Interest It refers to a consolidated retention of a particular stock, or a group of stock. Long .ar%et It an overbought market. Long of !c'ange It refers to a situation where the amount of foreign bills held by a trader in foreign currency e ceeds the amount of bills of his own that have been sold and remain outstanding, the trader then said to be long of e change. Long &ale It means hedging sales or sales created due to spot commitments in a commodities market. Long &ide It denotes a long interest. Long &toc% The jargon points at those securities which are purchased in anticipation of increasing prices. Loren* Curve It represents a graphic device for plotting the degree of ine$uality in the distribution of income.

Loss Ratio It is a proportion arrived at by dividing the amount of the losses by the amount of the insured premium. Lost 0pportunity It is a description for investments that are not earning the current available rate of interest. LTD The abbreviation stands for "limited to any security or purpose". Lu!ury Ta! It is a ta levied on items not regarded to be essential for daily living.

.
.ac'ine Accounting It is a record&keeping system which uses electromechanical machines and not electronic machines for the purpose of posting of account records and ledgers. .ac'ine $ay It is a scheme of checking account posting whereby all media, both che$ues and deposits, are posted to a journal only on the first "run" of the media. The old balances of all affected accounts are picked up, the media posted, and new balances e tended as in any posting run. The affected accounts may or may not be offset, depending upon the preference of using bank. .anagement Accounting It is a resource of management which supplies financial knowledge at all levels to be utili*ed in the planning and managing of the business. .anagement Audit It is a system of e amining, analy*ing and appraising a management9s overall performance. .anagement Company A company which deals in managing and selling shares of open&end investment companies in return for a fee or commission is a management company. .anagement Fee It is the charge made to an investment company for supervision of its portfolio and other services rendered. .anagement (ame It is a dynamic training approach which utili*es a model of the business world as a training device. .anagement Information &ystem It is a special data&processing system which is aimed to provide management and supervisory personnel with current information in real time. In the communication process, data are recorded and processed for operational purposes. .anagement &cience It refers to the formulation of mathematical and statistical models applied to decision making and the practical application of these models through the use of digital computers.

.anaging Agency Accounts It refers to an agency account regarding which the agent has managerial duties and responsibilities suitable to the kind of property and in conformity with the terms of agency. .argin The term has several meanings such as the difference between the cost of items sold and the total net sales income. It also refers to the difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. The term also indicates the amount paid by the customer for using a broker9s credit to buy a security. .argin Account It is any brokerage account where listed stocks can be purchased with the assistance of credit given by the buyer9s broker. .argin Buying It means utili*ing credit given by a broker for purchasing securities. .arginal Analysis It is an analysis of economic information by e amining the results of the value added when one variable is increased by a single unit of another variable. .arginal Borro)er ;e is a borrower who will deny an opportunity to borrow if the interest charge is increased. .arginal Buyer ;e is a buyer who will avoid buying at any given price if the price is increased. .arginal Lender ;e is the lender who will refuse to lend or invest if the rate of interest is reduced. .arginal $roducer ;e is a producer who is just able to meet his costs of production with small actual profit. .arginal $ropensity to Consume It is reflected by the percentage of increase in income that is spent for consumption purposes. .arginal $ropensity to Invest It is reflected by the percentage of increase in sales that is spent on investment items. .arginal $ropensity to &ave It is reflected by the percentage of increase in income saved by individuals. .arginal Revenue It denotes the additional revenue received by a business from the sale of one additional unit. .arginal &eller ;e is a seller who refuses to sell if the price is lowered. .arginal Trading It suggest buying of security or commodity by a person from the funds borrowed for part of the purchase price rather than the entire price. )uch a person does not pay for the entire transaction from his own funds but borrows money for part of the purchase price.

.argined &ecurities It denotes those stocks that are purchased on credit or are held as collateral in a margin account. )uch securities cannot be withdrawn before the debit balance in the account has been fully paid. .ar%et Audit It is a techni$ue of analy*ing the marketing activities and structure of a bank or financial institution. )uch an audit is undertaken primarily to identify the areas re$uiring improvements in order to increase profits. .ar%et Averages It is a major securities barometer indicating the trend and conditions of the market. .ar%et 1uilibrium It points a situation in the market when a balance occurs due to buyers and sellers decision to stop trading at prevailing prices. .ar%et Financing It is that part of the general business function of providing and managing funds and credit that is directly connected to the transactions involved in the flow of goods and services from producer to consumer or industrial user. .ar%et Li1uidity It is a condition e isting in a securities market which reflects the supply and demand forces. This helps the investor to purchase or sell stocks at prices relatively close to the previous sale. .ar%et 0ff The term stands for an e pression which indicates that prices were down for the day on various stock e changes. .ar%et 0rder It is an order to purchase or sell securities at the price currently prevailing in the market when the order reaches the market. .ar%et $otential It signifies the anticipated sales of goods or services for the entire industry in a market for a certain period of time. .ar%et Researc' It a part of marketing research which deals with the pattern of a market, measuring the e tent and nature of the market, and identifying its characteristics. .ar%et &'are It indicates an organi*ation9s share in the industry9s total sales. .ar%eting It ascribes all those activities which accelerate the movement of goods or services from the manufacturer to the consumer. In other words it means those activities connected with advertising, distribution, merchandising, product planning, promotion, publicity, research and development, sales, transportation and warehousing of goods or services. .ar%eting Researc' It is the process of analy*ing information relating to marketing of goods and services.

.aster Card It is a card having fi ed or indicative information for a group of punched cards and is ordinarily the first card of the group. .ature conomy It is a condition of a country9s economy where there e ists decline in the population growth rate and decrease in the proportion of national income utili*ed for investment in new capital projects and also there is an increase in the proportion of national income being utili*ed in purchasing consumer goods. .ember Corporation It is a brokerage firm dealing in securities and established as a corporation of which has at least one person being a director and a holder of voting stock in the corporation is a member of a stock e change. .ember Firm It is a securities brokerage firm established as a partnership concern which has at least one general partner who is a member of a stock e change. .ercantilism It is an economic policy under which nations measure their power as per the amount of precious metal ac$uired by them. .erc'ant Ban% The term stands for an organi*ation involved in the business of underwriting securities for corporations, advising them on mergers and ownership of commercial ventures. .il%ing It is an attempt by management to s$uee*e the last remaining profits from the firm without leaving sufficient reserves for contingencies. .int It is a place where metallic money is coined or manufactured. .int Ratio It is a ratio of the weight of one metal to another, and their e$uivalent in terms of the national unit of currency. .inus Asset It indicates that amount which must be subtracted from the original value of an asset in order to arrive at the present value of the asset. .I$ It is an abbreviation of "monthly investment plan". .LR Abbreviation of minimum lending rate. -inimum lending rate is a lending rate of financial institutions for customers below which the financial institution will avoid lending money. .onetary Base It is an aggregate of funds retained by banks and public along with member&bank deposits in the ,eserve Bank.

.onetary Liability It is a promise to pay a sum of money which is unaffected by inflation or deflation to discharge a claim. .onetary .ultiplier It is a number that shows the e pected change in income per unit change in the money supply. .oney Bro%er It is an institution or an individual who serves as a mediator for borrowers and lenders of money. .oney .ar%et All financial organi*ations which deal with the purchase, sale, and transfer of short&term credit instruments and notes constitute money market. .oney .ar%et &ecurities It refers to high&$uality and generally accepted senior securities whose market prices e pressed on a yield basis relate more closely to the prevailing rate of interest for money than to the risks in a company9s operations or in general business conditions. .oney Rates It denotes the rates of interest charged by lenders to their borrowers. .oney &upply It indicates the total sum of currency circulating in a country. .onopsony It is a market situation in which there is only one buyer for the entire item. .oonlig't It indicates working at a second job in order to supplement the income from a permanent position. .ortgage It refers to property pledged as security for repayment of a debt. It also means a written conveyance of title to property, but not possession, to secure repayment of a debt or some obligation. The conveyance becomes void on final payment or performance of the contract, as the case may be. .ortgage Ban%er It is a mortgage financing company or a banker who speciali*es in mortgage financing. .ortgage Clause It is a provision attached to an insurance policy covering mortgaged property. .ortgage Company These are mortgage finance companies also acting as mortgage agents for other large mortgagees. They serve as mortgage agents by performing functions such as collecting payments, maintaining complete records, and making remittances to the mortgagees for a fi ed fee or service charge. .ortgage Credit It is a form of long&term debt in which money is borrowed for ac$uiring land or building and which is paid back over an e tended period of time.

.ortgage Debt It is a liability created by a mortgage through a note or bond and secured by the property mortgaged. .ortgage Loan It is a loan granted by a lender to a borrower for financing of a parcel of real estate and which is evidenced by a mortgage. The lender is called mortgagee and borrower is called mortgagor. .ortgage $remium It is an e tra bank fee charged for the giving of a mortgage when the legal rate of interest is less than the prevailing mortgage market rate and there is a shortage of mortgage money. .ortgage Ris% It indicates the danger of loss of principal or of e pected interest on loan granted on the security of a mortgage. .ortgagee ;e is the person being creditor or lender to whom mortgage is made. The mortgagor retains possession and use of the property during the term of the mortgage. .ortgagee Clause It is a provision in an insurance contract which states that the proceeds are payable to a selected mortgagee as per his interest appearing. It also states the terms of contract between the insurer and the mortgagee. .ortgaging Future Income It signifies pledging of income which is not yet earned. .ortgagor Also spelled as mortgager he is a person being a debtor or borrower giving or making a mortgage to a lender, on property owned by the mortgagor. .ost Favored 6ation Clause It is a provision in the international business agreements which prevents tariff discrimination between two or more countries. According to this provision each partaker shall e tend to other signatories all tariff reductions which are offered to nonmember countries. .ulticompany It is a conglomeration of diverse organi*ations or a variety of firms under a single management. .ultiplier $rinciple It is reciprocal of the marginal propensity to save. The multiplier is a figure that identifies the changes in investment and spending to alterations in aggregate incomes. .utual company It is a corporation with no capital stock. The profits are distributed among the owner&customers in proportion to the business activity carried with the corporation.

6
6a%ed Calls It connotes selling of options on stock which is not owned by a customer.

6arro) .ar%et It is a market condition in which demand for a security is so restricted that minor change in supply or demand will create major fluctuations in the market price. 6ational Debt It is a debt owed by the central government. 6ational Income It is the sum total of incomes received by all people of a country over a period of time. It is calculated as gross national product minus depreciation minus sales ta es and other small items. 6ational +ealt' It is the combined monetary value of all material economic products owned by all the people of the country. 6atural Capital It stands for land that is employed as a factor of production. 6atural Financing It is a transaction of real estate which does not re$uire outside financing. It also means selling of properties, which do not call for a third party. 6atural .onopoly It refers to a monopoly caused due to natural conditions. It also signifies a condition where cost per unit is lowest when there is only one company in an industry among other industries e periencing economies of scale. 6ear .oney These are highly li$uid assets other than official currency. 6egative File It is an authori*ed system file that contains a simple list of accounts for which credit, che$ue cashing, and other privileges, should be refused. 6egative Income Ta! It is a concept of providing financial aid to individuals having incomes below a certain minimum. 6eoclassical conomics It is an economic approach which utili*es mathematics in the analysis of data and models. 6eo59eynesian A follower of concepts dealing with ta adjustment and government spending as primary forces of economic e pansion is termed as neo&keynesian. 6est gg It denotes money saved as an erstwhile arrangement for retirement. 6et Bonded Debt Bet bonded debt is gross bonded debt less applicable cash or other assets. 6et Cas' Flo) It is the net cash consumed or produced in a period by an activity or product during a unit of time, including all revenue and e penses e cept noncash items such as depreciation.

6et Cost It denotes the true cost of an item and is ascertained by subtracting all income or financial gain from the gross cost. It also refers to the total premiums paid on a policy less any dividends, and the surrender value as of the time the net cost is determined. 6et Debt It is the sum of fi ed and e isting liabilities less the sinking fund and other assets that are earmarked for payment of the liabilities. 6et Investment Income per &'are It is the net amount of dividends and interest earned during an accounting period on an investment company9s portfolio securities 4after deducting operating e penses7 divided by the number of shares outstanding. 6et Listing The term states that the broker receives as commission all monies received above minimum sales price agreed to by owners and broker. 6et 6ational $roduct It is computed by deducting capital consumption i.e. depreciation from the gross national product. In other words it is the market value of the net output of goods and services produced by a country9s economy. 6et $rofit on 6et &ales It is an important yardstick in measuring profitability. It is obtained by dividing the net earnings of the business, after ta es, by net sales. 6et $rofits on 6et +or%ing Capital Bet working capital which is the e$uity of owners in the current assets represents the cushion available to the business in order to carry inventories and receivables, and to finance day&to&day operations. 6et $rofits on Tangible 6et +ort' The ratio is obtained by dividing net profits after ta es by tangible net worth. Tangible net worth represents the e$uity of stock&holders in the business which is calculated by subtracting total liabilities from total assets, and then deducting intangibles. 6et Reali*ed Capital (ain per &'are The ratio is calculated as amount of net capital gains reali*ed on the sale of portfolio securities during an accounting period after deducting losses reali*ed, divided by the number of shares outstanding. 6et &ales to Inventory The ratio is calculated by dividing annual net sales by merchandise inventory as carried on the balance sheet. 6et &ales to 6et +or%ing Capital The ratio is obtained as net sales divided by net working capital. The ratio provides a guide as to the e tent the company is turning its working capital and the margin of operating funds. 6et &ales to Tangible 6et +ort' The ratio is obtained by dividing net sales by tangible net worth. It gives a measure of the relative turnover of capital.

6et +ort' It is the owner9s e$uity in a given business, represented by the e cess of the total assets over the total amounts owing to the outside creditors at a given moment of time. It also refers to the "net worth" of an individual, which is determined by deducting the amount of all personal liabilities of such individual from the total value of personal assets. 6et ,ield It denotes the return from an investment after subtracting costs and losses incurred in operating the investment. 6e) conomics It is an economic thought stating that an economy may be in e$uilibrium at any level of employment. It also states that appropriate government fiscal and monetary policies are necessary to maintain full employment and keep economic growth with minimal inflation. 6e) Issue .ar%et It indicates a market for new issues of securities. It is different from secondary market, which deals on securities already issued. 6o $rotest It refers to an instruction given by one bank to another collecting bank not to object to items in the event of nonpayment. 6o Record It is the report furnished by a credit bureau to a credit grantor when no record e ists in the bureau files regarding a particular customer. 6ominal Asset It is an asset whose value is inconsiderable, to be $uestioned, or difficult to evaluate. <laims or judgements in reorgani*ation are certain e amples of such assets. 6ominal Interest Rate It is the contractual interest rate e pressly shown on the face and in the body of a bond. It represents the amount of interest to be paid, in contrast with the effective interest rate. 6ominal $artner ;e is an individual who lends his name to a business organi*ation but is actually not a true partner as he may not have contributed ade$uate funds or he does not take a full share of the profit. 6ominal $rice It is an amount of money so small in relation to the item purchased that it hardly justifies the use of the word "price". It also denotes an estimated price for an item, which is not traded fre$uently enough to warrant the setting of a definite market price. 6ominal ,ield It is the rate of return stated on a security calculated on its par or face value. 6ominally Issued <apital stock, funded debt, and other securities when they are signed and sealed or certified and placed with the proper officer for sale and delivery, or pledged or placed in some special fund of the issuing corporation it is said to be nominally issued.

6on5$ar Item It indicates a che$ue which cannot be collected at the par or face value when presented by another bank. 6onprice Competition It is a situation e isting in markets in which a seller maneuvers for influence on the basis of specific aspects of the items to be sold, promotion, or marketing strategy. 6o5par5"alue &toc% It denotes stock of a corporation without any designated par value. 6o5$assboo% &avings It is similar to a regular passbook savings account, e cept for the fact that no passbook is used. In such an account the teller receipts deposits and withdrawal slips, with a copy returned to the depositor for personal records. 6otary $ublic ;e is a person appointed by a state for a specified period of time, which can be renewed, to administer certain oaths and to attest and certify documents. ;e is thus authori*ed to take affidavits and depositions. 6ote $ayable It is a formal written promise to pay a specified sum at a fi ed future date for discharging a liability. 6ote Receivable It denotes a promissory note collected by a business from a customer. 6otice Account It is a form of a passbook savings account which re$uires the customer to furnish a specified notice to the association before making a withdrawal. 6otice Day It is the day on which notices of intention to deliver may be issued. 6otice of +it'dra)al It is a notice that may be demanded by a mutual savings bank or other recipient of savings deposits before a withdrawal of funds is allowed. 6otice to Creditors It is a written notice by posting in public places or by notice in newspapers to creditors of an estate to present their claims for what the e ecutor or administrator owes them. 6ursery Finance It refers to loans granted by financial institutions to profitable organi*ations which plan to go public shortly.

0
0bligatory .aturity It signifies the compulsory maturity of any bond or note. It is different from optional maturity dates or early redemption dates.

0bligee ;e is the creditor or promisee. 0bligor ;e is the debtor or promisor or principal. 0bserve It denotes the front or face of a note, as opposed to the reverse or back. 0bsolete &ecurities These are abandoned or defunct corporation securities. The term also stands for a bond that has matured or been withdrawn. 0ccupation Currency It refers to the military currency introduced to a country by occupying forces. 0ccupational Analysis It is descriptive approach to ascertain tasks having common activities and allow to group them under a common occupation. 0ccupational Information It is the information resulting from scrutiny of $uestionnaires and other materials. 0dd Lot It means an amount of stock which is less than the established !""&share unit or !"&share unit of tradingC from ! to 22 shares for the greatest majority of issues, ! to 2 for so&called inactive stocks. 0dd5Lot Dealer It is any member firm of an e change which buys and sells odd lots of stock&! to 2 share in the case of stocks traded in !"&share units and ! to 22 shares for !""&share units. The odd&lot dealers have customers as commission brokers who act on behalf of their customers. 0dd5Lot 0rders It signifies any purchase or sale of stock not in !""&share units. 0ffered Do)n It refers those securities that are offered for sale at levels lower than the last sale or $uoted price of the same stock. 0ffering $rice It is a price similar to asked or asking price and it denotes the price per share at which investment shares are offered to the public. The offering price usually consists of the net asset value per share plus a sales charge. 0ffsets to Long5Term Debt These are cash and investment assets of sinking funds, bond reserve, and other reserve funds which are held specifically for the purpose of redemption of credit funds that are pledged to redeem debt incurred to finance loan activities of such funds. 0% $ac%ages It is a list or package of che$ues which are processed in a branch office, proved for accuracy, checked for date and endorsement, and considered 'D by the branch office.

0L The abbreviation stands for "odd lot" as well as "operating losses". 0ligopoly It refers to an industry in which a small number of manufacturers sell identical products. 0ligopoly $rice It is the price prevailing in the oligopoly market. In other words it is a price developed as a result of numerous buyers and few sellers in a market, thus resulting in the sellers having the greatest power. 0ligopsony It is an industry with small number of buyers for a specific commodity who attempt to influence the demand for that commodity. 0ligopsony $rice It is the price prevailing in an oligopsony market. It is developed when there is a market of few buyers and numerous sellers, thus resulting in the buyers having the greatest power. 0mnibus Account It is an account carried by one futures commission merchant with another. In this account transactions of two or more persons are combined rather than designated separately and the identity of individual accounts is not disclosed. 0n Account The term describes a payment made toward the settlement of an account. It also denotes a purchase or sale made on open account. 0n Balance It means the net effect or result. It also stands for the difference between offsetting sales and purchases. 0n Demand The term describes a bill of e change which is payable on presentation. 0n .argin It refers to securities purchased when the buyer has borrowed part of the purchased price from the broker. 0n 0pening It is a term used to specify e ecution of an order during the opening call. 0n5Balance "olume It is an indicator to pinpoint where futures contract are being accumulated or bought, and when they are being distributed or sold by controlling market forces, the hedgers, and large traders. 0ne 4undred $ercent Reserve It is a form of banking system which can be substituted for the fractional reserve system. 0ne5Ban% 4olding Company It is a corporation owning control of one commercial bank.

0ne5Cancels5t'e50t'er 0rder It is a contingency order in which one part is automatically canceled as soon as the other part is filled. 0ne5&top Ban%ing It is a service provided by a bank whose clients can do all banking business at that bank. 0n5t'e5Job Training It is a techni$ue of training the employees by using the actual work site as a proper setting to instruct workers while at the same time engaging in productive work. 0pen Account It stands for a credit e tended which is not secured by any note, mortgage, or other formal written evidence of indebtedness. 0pen Credit It refers to the credit e tended without immediate proof of a customer9s credit worthiness. 0pen Door $olicy It is a situation in which citi*ens and products of foreign countries are bestowed the same treatment as domestic citi*ens and products. 0pen conomy It stands for an economy which is free of trade restrictions. 0pen Interest The term states the number of outstanding contracts in the e change market, or in a particular class or series. 0pen .ar%et It is general term which describes a condition of trading that is not limited to any area or persons. 0pen .ortgage It is a type of mortgage that can be paid off, without penalty, at any period prior to its maturity. 0pen 0rder It is an order to buy or sell securities which has not yet been e ecuted. 'rders may be placed at market price or at a fi ed price. 0pen $rospectus It is a brochure which aims to obtain financial backing and does not clearly identify the use to be made of the investment. 0pen to Buy It indicates the currently unused portion of a total dollar credit line agreed upon. 0pen Trade It denotes any transaction that has not yet been closed. 0pen5 nd Clause It is an optional clause in mortgage agreements and used in states that recogni*e its validity. The clause states that the pledge of real estate will cover additional advances of funds which the borrower may re$uest and the lender agrees to grant at unknown times in the future.

0pen5 nd Credit It suggests a line of credit which can be used repeatedly up to a certain limit. It is similar to charge account or revolving credit. 0pen5 nd Funds These are the mutual funds where new shares of the fund are sold whenever there is a re$uest, with the e pectation that the seller will eventually re$uest to buy the shares, at no additional charge. 0pen5 nd Investment Company It is an investment concern which sells and reclaims its capital stock continually, selling it at a slight discount or at book value. 0pen5 nd Investment Trust It is a form of an investment trust in which the trustee, by the terms of the trust, is approved to invest in shares of stock other than those in the trust at the time of the inception of the trust or of the participation in the trust. 0pen5 nd Lease It is a form of lease agreement which involves an additional payment based on the value of property when returned. 0pen5 nd .ortgage It is a sort of mortgage agreement which allows the borrower to reborrow money paid on the principal up to the original amount. 0pening $rice It connotes the first price given in an auction or sales marketplace. It also signifies the initial price at which a transaction in a security takes place on every day. It also means the first $uoted price of a new stock issue. 0pening $urc'ase It denotes a transaction in which an investor becomes the holder of a security or an option. 0pening &ale It indicates a transaction in which an investor becomes the writer of an option. 0pen5.ar%et Credit It is a short&term financing policy that enables commercial paper houses to purchase notes and resell them in the open market. 0pen5.ar%et 0perations These are operations carried out by the %ederal ,eserve )ystem, which deals with buying and+or selling government bonds in the same market in which other institutional investors operate. 0pen5.ar%et Rates These are money rates set for classes of paper in the open market, as distinguished from banks rates offered to customers, and rates for advances and rediscounts set by ,eserve Banks for all member banks. 0perating Budget It is a budget that applies to all outlays other than capital outlays.

0perating Company It is a company whose officers direct the business of transportation and whose books contain operating as well as financial accounts. 0perating Losses These are losses incurred in the normal operation of a business. 0perating $rofit Ratio It is the ratio of a firm9s operating profit to its net sales. 0perating Reserves These are a group of balance sheet accounts reflecting the net accumulated balances provided for property insurance, injuries and damages, pensions and benefits, and amorti*ation. 0perating Return It is the operating income before income ta es and depreciation and amorti*ation e pense. 0perations Researc' It refers to the application of scientific methods, techni$ues, and tools to problems involving the operations of a system, to provide those in control of the system with optimum solutions to the problems. 0pportunity Cost It refers to the ma imum alternative profit that could have been obtained if the productive good, service, or capacity had been applied to some other use. 0pportunity Cost of Capital It is the e pected rate of return from effectively employing funds in the company. 0ption It states a privilege to buy or sell, receive, or deliver property, given in accordance with the terms stated, with a consideration for price. It also refers to the right of an insured or a beneficiary to select the form of payment of the proceeds of an insurance contract. It also stands for an agreement, often for a consideration, to buy or sell a security or commodity within a stipulated time in accordance with the agreement. 0ption Account It is a charge account in which the consumer may choose either to pay at the end of 3" days or to spread payments over a longer period of time. If he choose to spread his payments beyond 3" days, he pays a service charge. 0ption Day It is the specified date on which an option e pires unless e ercised. 0ption Income Fund These are income funds with the investment objective to seek a high current return by investing primarily in dividend&paying common stocks on which call options are traded on national securities e changes. 0ptional Dividend It is an alternative available to the stockholder of receiving either a stock dividend or a cash dividend.

0ptional "aluation Date It is that date on which the si*e of an individual9s estate is computed for purposes of ta payment. 0ptionee ;e is the holder of an option or a prospective buyer. 0ptioner ;e is the property owner. 0rgani*ational C'art It is a graphic presentation of the relationships and interrelationships within an organi*ation that identifies the lines of authority and responsibility in an organi*ation. 0rgani*ed .ar%et It is market in which a group of traders, operate under recogni*ed rules, for the purpose of buying and selling a single commodity or a small number of related commodities. 0riginal Balance It refers to the beginning debt or obligation before any payment has been made on it to reduce it. 0TC &toc%s 20ver T'e Counter &toc%s3 )hares in companies traded outside of organi*ed stock markets like Bombay )tock A change or Bational )tock A change. 0ut of Line It denotes a stock whose price is determined to be either too low or too high. 0ut of t'e .oney It is a situation in which the striking price is above the market price of the underlying stock for a call, or the striking price is below the market price of the underlying stock for a put. 0utbid It signifies an act to offer a higher price for an item than that offered by other biders. 0utcry .ar%et The commodity tradings by private contract that must be shouted out, as on the floor of an e change in order to records the agreement. 0utside Bro%er A broker whose is not a member of a regular stock e change or a dealer in unlisted stocks is termed as outside broker. 0utside .ar%et It is an over&the counter market, or a market where unlisted securities are handled. 0utside &ecurities It refers to any security that is not listed or $uoted on a major local e change. 0ver +it'out Bill It means freight without its bill of lading.

0verall .ar%et $rice Coverage It represents the ratio of net assets to the sum of all prior obligations at li$uidating value plus the issue in $uestion taken at market price. 0verinvestment T'eory It is a concept of business cycle stating that economic variations are a function of too much investment in the economy as business managers try to measure increasing demands during an upswing, and of major cutbacks in investment during a downswing when they reali*e that they e panded too much in the previous prosperity. 0verride It refers to a commission paid to managers which is added to their salary. 0versold It refers to the situation of a manufacturer who is obliged to deliver more than he is able to supply within a certain period of time. It is the reverse of overbought. It also signifies a single security or a market that is believed to have declined to unreasonable level. 0versold .ar%et A market is said to be oversold when the speculative long interest has been drastically reduced and the speculative short interest increases. 0vertrading The activity of a firm that even with high profitability cannot pay its own way for lack of working capital and finds itself in a li$uidity crisis. 0)ner Financing It is home&financing approach where the potential buyer bypasses the financial institution and borrows money directly from the person selling the house.

$
$aid5in5Capital It refers to capital contributed by stockholders and assigned to accounts other than capital stock. $aid5up Insurance It is a sort of insurance policy on which no further premium payments need to be made. The company will be held liable for any benefits claimed under terms of the contract. $aid5up &toc% It is the capital stock on which the initial buyer has paid in services, goods, or funds an amount at least e$ual to the par value. $aper Basis It indicates that a nation does not apply a metallic basis for its currency. $aper (ain or Loss The term e presses unreali*ed capital gains or losses on securities in a portfolio based on comparison of current market $uotations and the original costs. $aper $rofit It indicates a profit unreali*ed on a security still held. /aper profits become reali*ed profits only when the security is sold.

$aper &tandard It is a monetary system that is based on paper money and which is not convertible into gold or any other item of intrinsic value. $ar !c'ange Rate It signifies the free market price of one nation9s money in terms of the currency of another. $ar of !c'ange It refers to the market price of money in one national currency which is e changed at the official rate for a specific amount in another national currency, or another commodity of value 4gold, silver, etc.7. $ar "alue 2of Currency3 It describes the value of a currency in terms of gold as formally proposed to the International -onetary %und, normally subject to fund concurrence. $areto7s La) It is a theory which states that income tends to become distributed in the same proportion among consumers throughout the world, regardless of differing forms of ta ation. $arity It means the state or $uality of being e$ual or e$uivalent. e$uivalence of a commodity price e pressed in one currency to its price e pressed in another. It also means e$uality of purchase power established by law between different kinds of money at a given ratio. $arity Clause It is a mortgage clause by virtue of which all notes obtained by the mortgage have "e$ual dignity", that is none has priority. $artial .onopoly It is a market condition where there are so few sellers of an item or service that each may alter the price and market. $artial Release It signifies surrender of a claim to a part of the property held as security for the payment of a debt. $articipation It connotes an ownership interest in a mortgage. $articipation Loan It is a type of loan that has two or more banks as creditors. $artisan Issues These are paper money for limited circulation issued by partisans fighting the forces occupying their country. $assboo% Account It is a type of savings account which ordinarily does not have any restrictions as to minimum balance, specified deposits, or notice or penalty for withdrawal. $assed Dividend It signifies a regular or scheduled dividend which has been omitted.

$assing a Dividend It is a decision taken by a corporation to omit the declaration of an e pected dividend. $assing Title Also referred to as closing title, the term indicates handling over of title to the new owner. $assive Trade Balance It signifies an unfavorable balance of trade. $assive Trust It refers to a trust whose trustee does not have any tasks to perform but merely retains title to the property of the trust. $ast Due It is an account on which payment has not been made according to contract and owes a certain sum of money which is in arrears. $ast5Due Item It stands for any time instrument of indebtedness which has not been paid on the due date. $ay5as5,ou go Accounts It is just a variation of "special checking accounts" or "special fee accounts" $ayment for 4onor It is an act of paying a bill by the person other than one on whom the bill is drawn, in the event of default by the original drawee, in order to save the reputation of the original drawee. $ayoff It is a complete repayment of loan principal including interest and other sums due. It also represents money given for an unethical or illicit service. $ayoff &tatement It is a formal statement, similar to letter of demand, prepared when a loan payoff is contemplated. It displays the current status of the loan account, all sums due, and the daily rate of interest. $ayor ;e is the person making or is liable to make a payment. $ayroll &avings $lan It is a scheme according to which an employee permits his employer to deduct from his wages or salary a stipulated sum and to forward that amount to his savings association for deposit to his savings account. $ayroll Ta! It is a ta levied on a company9s payroll and is used to finance an employer9s contribution to the )ocial )ecurity program. $ecuniary !c'ange It signifies any trade using money. $ecuniary Legacy It indicates a gift of money made through a will.

$eg It is an act of fi ing or stabili*ing the price of something through manipulation or regulation of the market. $ending Claim It refers to a claim that is submitted to a company by a policyholder which is in the process of consideration of preparation for payment. $eople7s Capitalism The concept states that the full range of income levels in the population of a community is represented in the ownership of the business. $erfect Competition The term describes an industry or market unit consisting of a large number of buyers and sellers who are involved in buying and selling of a similar commodity with awareness of prices and volume. There is no discrimination in buying and selling and there e ists a mobility of resources in such market. $erformance Budgeting It indicates grouping of budget accounts into categories that are related to a particular product or service produced and the revolution of product&cost measurements of these activities. $erformance Report It is a comparison of actual results against those e pected in a stated budget. $ermanent Financing It refers to a long&term mortgage which is usually amorti*ed over !6 or more years at a fi ed rate of interest. $erpetuity )omething which is removed from the ordinary channel of commerce by restraining its capacity to be sold for a period longer than that of a life or lives in being and E! years, thereafter, plus the period of development, is said to be removed in perpetuity. $ersonal Distribution of Income It is an act of distributing natural income among individuals or households. $ersonal Income It is the amount available after deducting from the national income, various kinds of income not actually received by individuals, non&profit institutions, and so on 4e.g., undistributed corporate profits, corporate ta es, employer contributions for social insurance7. The amount so derived has to be added to certain receipts that do not arise from production 4i.e., transfer payments and government interest7. $ersonal &aving /ersonal savings refers to the difference between disposable personal income and personal consumption e penditures. It also includes the changes in cash and deposits, security holdings, indebtedness, reserves of life insurance companies and mutual savings institutions, the net investment of unincorporated enterprises, and the ac$uisition of real property net of depreciation. $etrobonds These are instruments which are backed by a specific number of barrels of oil.

$etrodollars These are huge sums of money from oil&producing nations other than the 1nited )tates or @reat Britain. These funds are initially converted into Aurocurrency and deposited with international banks for using them for future investment and for discharging liabilities. These banks traditionally set limits as to the amount to be accepted from any one country. $'antom &toc% /hantom stock is used in e ecutive compensation programs whereby the e ecutive is given a number of shares of the company. Aach share allows the e ecutive to the amount, if any, by which the market price of the stock at some future time e ceeds the current market price. $'ilips Curve It refers to a correlation between the unemployment level and the rate of wage changes. The curve demonstrates that it is possible to lower unemployment only at the e pense of a rising price level. This makes it necessary to trade off between reducing unemployment and maintaining a stable price level. $'ony Dividends #ividends that are paid immediately from a portion of the money that comes in from the public9s purchasing of that stock rather than paying dividends from stock earnings are called phony dividends. $iece5of5t'e5Action Financing It is a lending agreement in which the mortgagee receives, besides regular loan interest, a negotiated percentage of the gross income of an income property, of increases in rentals over a stated period of the life of an income property, or the gross or net profit of a commercial or industrial enterprise. $igou ffect Concept It is a theoretical belief that counter cyclical force under an e treme condition might provide some stimulus to an economy in a depression. $in% &'eets These are price $uotations of many over&the&counter stocks that are published on pink sheets. $ITI The abbreviation stands for principal, interest, ta es, and insurance while describing the monthly carrying charges on a mortgage. $ivotal &toc% /ivotal stock is one which is accepted as the leader of its group. It often influences the activity of other stocks. $ledged Loan It denotes a loan which has been pledged as a security for a borrowing. $ledging It refers to offering by a borrower of his assets as security for the repayment of a debt. $lo) Bac% It is an act of putting earnings from sales back into the business operation.

$oint It is a loan discount being a one time charge which is used to adjust the yield on the loan to what market conditions demand. Aach point e$uals one percent of the principal amount. It is also the minimum unit in which changes in futures price may be e pressed. $oint of &ale It is a system that allow bank customers to effect transfers of funds from their bank accounts and other financial transactions at retail points of sale. $oint5of5&ale Terminal It is a communication and data capture terminal located where goods or services are paid for. /')T terminals may serve merchant accounting needs and may assist in processing financial transactions. $olicy Dividend It means a refund of part of the premium on a participating life insurance policy reflecting the difference between the premium charged and actual e perience. $ool The jargon has several meanings one of which signifies a combination of resources of funds, and so on, for some common purpose or benefit. It also refers to an agreement between two or more companies to curtail output, divide sales areas, or in any other way avoid competition. The term also stands for firms joined to share business over a fi ed time. It also suggests a combination of persons organi*ed for the purpose of e ploiting stocks. $ortfolio These are securities held by an individual or institution. A portfolio may contain bonds, preferred stocks, and common stocks of enterprises of various types. $0&D C0RB The abbreviation stands for seven functions of administration which are as followsC planning, organi*ing, staffing, directing, coordinating, reporting, and budgeting. $osition &'eet It is an accounting statement, e hibiting the commitment of a bank or foreign e change firm in overseas currencies. $reemptive Rig't It is the benefit available to a stockholder to buy a portion of a new issue of stock e$ual to his e isting percentage holding. $remium Finance It is a facility that permits an insured to finance his payment over a specified period of time within the term of the policy. $remium $ay It is a wage rate that is higher than straight time. It is payable for overtime work, work on holidays, or scheduled days off, or for work on evening shifts. $resent "alue <urrent worth of money to be received in the future. It will be lesser than the money to be received in the future because if you had the money today, you could invest it and make more.

$resent "alue of !pected Cas' Flo) It denotes the net cash that a company e pects to reali*e or pay out from holding an asset or liability, discounted by an appropriate rate of interest. $reservation of Capital It is a type of investment made with the intention of preserving capital by way of avoiding high&risk situations. $rice Clearing It is the settlement price at which a clearinghouse clears all the buy and sell orders for the day, or at which an e change settles unli$uidated contracts. $rice Fi!ing It is an agreement made by competing organi*ations to avoid competitive pricing. It is done by charging identical prices or by changing prices at the same time. $rice Inde! It is a measure used to illustrate the changes in the average level of prices. $rice Leaders'ip It refers to a situation in which prices can be determined by one major manufacturer in an industry, thus influencing others to accept the price as determined. $rice Limit It is that price entered on the trading floor of an e change which is used for placing an order to buy or sell. $rice &preading It is an act of simultaneous purchase and sale of options in the same class with the same e ploitation date but with different striking prices. $rice5 arnings Ratio It is a ratio calculated by dividing the price of a share of stock by earnings per share for a !E& month period. $rice5&pecial Flo) T'eory It is a theory which states that imports of precious metals increase the supply of funds and therefore advance the price level of items using these metals. $rimary .ar%et It is the initial market for any item or service. It also signifies an initial market for a new stock issue. The jargon also means a firm, trading market held in a security by a trader who performs the activities of a specialist by being ready to e ecute orders in that stock. $rimary .oney It denotes standard money. $rimary Reserves These are legal reserves of a bank in form of cash and demand deposits with the %ederal ,eserve Bank and other banks.

$rime Bill of !c'ange It is a draft or trade acceptance which states on the face of the instrument that it was created through a business transaction involving the movement of goods. $rime Interest Rate The rate of interest charged by a commercial bank for large loans made to its most credit&worthy business and industrial customers is known as the prime interest rate. It is the lowest interest rate charged by a bank. The prime rate level is determined by how much, banks have to pay for the supply of money from which they make loans. $rime Investment /rime investment is the $uality and first&class investment. It also means a high&grade investment, which is considered so safe and sound that dividends or interest payments are assured. $rior Deductions .et'od It is an improper method of determining bond interest or preferred dividend coverage in which the re$uirements of senior obligations are first deducted from earnings and the balance is applied to the re$uirements of the junior issue. $rivilege Issue It is a preferred stock or bond that has a conversion or participating right, or has a stock purchase warrant on it. $rivileges These are options such as puts, calls and straddles. $ro Rata Rate It is a premium rate charged for a short term at the same proportion of the rate for a longer term as the short term bears to the longer term. $roducer $rices It is the successor to the wholesale price inde . This measure contains data on prices by stage of processing, sector, industry, and commodity. $rofit and Loss &tatement 20perating &tatement3 It is similar to an income and e pense statement which gives the summary of a firm9s total revenues and e penses with a specified time period. $rofit .argin It is the ratio of sales less all operating e penses divided by the number of sales. $rofit Ta%ing It is the sale of stock that has appreciated in value since purchase, in order to reali*e the profit that has been made possible. This activity is often cited to e plain a downturn in the market following a period of rising prices. $rofits Ta! It denotes a ta on business profits, e cluding income ta es. $rofit5&'aring Trust It is a trust established by an employer 4usually a corporation7 as a means of having the employees share in the profits of the enterprise.

$rogress $ayment $lan It is a method of paying off construction loan in which the contractor presents to the association all bills and lien waivers from time to time as construction progresses. $rogressive Ta! It is an income ta that rises as income increases. The rate of increase varies. $roperty Dividends These are dividends paid by one corporation in the form of stocks of another corporation, which the former may have ac$uired by purchase or received from the sale of property. $roportional Ta! It is form of ta whose percentage rate stays constant as the ta base increases, resulting in the amount of paid ta being proportional to the ta . $roprietary Accounts These are accounts which show actual financial condition and operations such as actual assets, liabilities, reserves, surplus, revenues, and e penditures, as distinguished from budgetary accounts. $roprietary Company It is a nonfunctioning parent company of a nonfunctioning controlling company, formed for the purpose of investing in the securities of other companies, and for controlling these companies through such holdings. It is synonymous with holding company and parent company. $rorate It means to redistribute a portion of a cost to a department or product in accordance with an agreed&upon formula. $rotected C'e1ue It is a che$ue that is prepared in such a manner as to prevent alterations. $ro!y It is form of power of attorney given by a stockholder to an individual or individuals to e ercise the stockholder9s rights to vote at corporate meetings. $ublic 0)ners'ip It signifies ownership by the public of the common or other e$uity stock of a firm. $ublic Trust Fund It is the fund of a trust whose principal, earnings, or both, must be used for a public purpose. $ull It connotes raising the offering price, or lowering the bid price of a stock, or if neither, then to cancel completely. $ull Do)n It refers to the sum of money earned from working. $urc'ase and &ale &tatement It refers to a statement sent by a commission merchant to a customer when his futures position has been reduced or closed out.

$urc'ase .oney These are monies paid to obtain ownership of property. $urc'ased Funds These are the large&denomination certificates of deposits held by banks. $urc'ased $aper It is any commercial paper that has been bought outright. It is different from paper that has been discounted. $urc'asing $o)er It signifies the value of money measured by the items it can buy. $ure Interest This is the price paid for using capital. But it does not include monies for risk and all other costs incurred because of the loan. It is synonymous with net interest or true interest. $ure .ar%et conomy It is a competitive economic system where e ists numerous buyers and sellers and where prices are determined by the free interaction of supply and demand. $uts It is an option contract that permits the holder to sell a number of shares of the underlying stock at a certain price on or before a fi ed e piration date. $uts and Calls These are options which give the right to buy or sell a fi ed amount of certain stock at a specified price within a stipulated time. A put option gives the holder the right to sell the stock whereas a call option conveys the right to buy the stock. /uts are purchased by those who think a stock may go down. A put compels the seller of the contract, commonly known as the option writer, to take delivery of the stock and to pay the specified price to the owner of the option within the time limits of the contract. The price specified in a put or call is usually close to the market price of the stock at the time the contract is made. <alls are purchased by those who think a stock may rise. A call gives the holder the right to buy the stock from the writer at the specified price within a fi ed period of time. /ut and call contracts are written for 3", F", or 2" days, or longer. )i months and !" days is the most common term. If the purchaser of a put or call does not wish to e ercise the option, the price paid for the option becomes a loss. $yramid &elling &c'emes These are business opportunity frauds, usually promoted through advertisement for job opportunities guaranteed to yield enormous or $uick profits&re$uiring little education or demanding a minimal personal investment. There are government regulations against certain pyramid schemes. The pyramider induces people to buy his products, which they are to resell at a higher price.

8
85Ratio It is a concept that e plains how the level of stock market prices affects capital spending&and thus the overall economy&even though the vast majority of firms never consider raising fresh e$uity capital. The G&ratio relates the market value of a company9s physical assets to the cost of replacing those assets. A ratio greater than ! means that the stock market values a dollar of a

company9s assets at more than a dollar. 'n the contrary, if G is less than !, the assets are being valued at less than dollar for dollar. 8uantity T'eory It is a philosophy which states that a peculiar relationship e ists between the $uantity of money and money income. /eople spend e cess money holdings irrespective of the interest rate and the manner in which the new money holdings were received. 8uasi5$ublic Company It is a privately operated corporation in which the public has a specific interest. 8uic% Ratio It is the ratio between e isting liabilities and $uick assets that shows an organi*ation9s ability to pay off its liabilities $uickly with available funds. 8uic% Turn It indicates a rapid purchase and sale transaction over a short period of time, may be within hours.

R
Rag .oney It is American term for paper money. Raise It signifies a fraudulent increase in the face value of a negotiable instrument. Raised Bills These are denomination of paper money that has been illegally raised. Raised C'e1ue It is a che$ue whose amount has been illegally increased. Raised 6otes These are notes on which there is an overprint indicating that the denomination has been increased as a result of government revalidation. Rally It signifies a brisk upsurge following a decline in the general price level of the market, or in an individual stock. Rate Base The value established by a regulatory authority, upon which a utility is permitted to earn a specified rate of return is known as the rate base. Rate of Inflation It indicates the average percentage rate of increase of the price of money, weighted and stated in annual terms. Ratio Analysis It refers to an analysis of the relationships of items in financial statements.

Ratio of Accounts $ayable to $urc'ases This ratio is computed for the present period and compared with a similar ratio for previous periods in order to determine the trend toward or from prompt payment of current obligations. Ratio of Capital to Fi!ed Assets This ratio is usually computed for a number of years to determine whether there is a trend towards converting the investment of the owners into fi ed assets. This helps in indicating a possible reliance on creditors for furnishing the re$uired working capital. Ratio of Collateral to Debt It is a measure for determining how effectively stock margin is achieved. Ratio of Finis'ed (oods Inventory to t'e Cost of (oods &old This ratio is calculated by dividing the cost of goods sold by the average finished goods inventory. The resulting figure is the number of times the investment in the finished goods inventory has turned over during the period under consideration. Ratio of 0)ned Capital to Borro)ed Capital This is considered to be important in determining the advisability of e tending additional long&term credit to an applicant. If this ratio is not considered favorable, it fre$uently suggests that the funds desired should be raised from the owners of the business i.e. applicants themselves rather than through the additional pledging of any assets. Ratio of Ra) .aterials Inventory to Cost of .anufacture This ratio is computed by dividing the cost of goods manufactured by the average raw materials inventory. The resulting figure is the number of times the investment in the raw materials inventory has turned over during the period under consideration. Reac1uired &ecurities These are securities, once outstanding, that have been ac$uired by the issuing corporation and are legally available for reissue or resale. 4in some states approval of regulatory authorities is necessary for reissuing these securities.7 Real Accounts These are accounts&asset, liability, reserve and capital&whose balances are not canceled out at the end of an accounting period but are carried over to the ne t period. Real arnings Those earnings adjusted to e clude the effects of price change are termed as real earnings. Real Income It refers to the sum total of the purchasing power of a nation or individual. Real Investment It is that e penditure which establishes a new capital asset, thus creating a new capital formation. Real .oney It is money containing one or more metals having intrinsic value and che$ues, drafts, and so on, issued by legal entities. Real $rice It is the price of goods and services measured by the $uantity of labor needed to earn sufficient money to purchase the goods or services.

Real $roperty The property that is devised by will to a party 4devisee7 is known as real property. It also means all fi ed, permanent, immovable property. Real "alue of .oney It is the price of money measured in terms of goods. Reali*ed $rofit 2or loss3 As differentiated from a paper profit or loss, the term signifies a profit or loss resulting from the sale or other disposal of a security Real5.oney Balances It denotes the amount of goods and services that can be bought from a given stock of money retained by individuals. Rebate An unearned interest that may be returned to a borrower if his or her loan is paid off before the maturity date is called rebate. It also refers to a deduction made from a payment or charge. As contrasted with a discount, the rebate is not deducted in advance but is returned to the consumer following payment of the full amount. Rebating It is an illegal and unethical practice of selling a policy at less than the legal rate, or allowing the insured a refund of the premium, or giving him or her the goods of any value, thus avoiding payment of the full legal premium. Recapitali*ation It means altering the capital structure of a firm by increasing or decreasing its capital stock. Receivables These are receivables owned by a business. These may be pledged as collateral for a loan secured from a bank or other financial institution. Record Date It that date on which a person must be registered as a shareholder on the stock book of a company in order to receive a declared dividend, or among other things, to vote on company affairs. Redeemable Rent The payment of rent that can be recovered is termed as redeemable rent may be with a rental agreement containing the option to buy the property. Redemise It means to renew a lease. Redemption Fund It refers to a fund created for the purpose of retiring an obligation. Redemption Rig't It is the right of a defaulted mortgagor to redeem his property after default and court judgement, both before and after its sale.

Redemptions It signifies cash&ins made of investment company shares. Refinance It is an act of e tending e isting finance or to ac$uire new monies. It also suggests a revision in payment timetable and, fre$uently, modification in interest charges on the obligation. Reflation 1pon recovering from a depression or a recession, the period during which prices are returned to the level they had attained during a period of prosperity by lowering the purchasing power of money is known as reflation. Refund It is an amount paid back of credit allowed because of an overcollection or on account of the return of an object sold. To pay back or allow credit for an amount because of an overcollection or because of the return of an object sold is also termed as refund. It also indicates provision of sum for the payment of a loan through cash or credit secured by a new loan. 8astly it also means to replace one bond issue with another, usually in order to e tend the maturity, to reduce the interest rate, or to consolidate several issues. "Advance refunding" is an offer to e change new securities for outstanding securities prior to their maturity dates. Regressive Ta!es It is a document in writing that is prepared by a custom official, allowing a ship to engage in foreign trade. Regular Lot The unit of trading on a specific stock or commodity e change is termed as regular lot. It also denotes the full or board lot. Regular .ortgage It is the legal document used in most states to pledge real estate as security for the repayment of a debt. Remand The action of an appellate court in sending a cause back to the lower court that sought the appeal, accompanied by the instructions of the higher court is called a remand. Remittance Letter It is a transit letter containing a list of che$ues sent for collection and payment by a sending bank to a receiving bank. Remoneti*ation The reinstatement of a coin as standard money after it has been demoneti*ed. Remote lectronic Ban%ing It is the electronic funds transfer systems through which bank customers conduct banking business at location other than a bank office. Rentier ;e is a person living on income received from fi ed investments.

Reservation $rice ,eservation price is the highest offered price at which a seller will continue to hold back from selling. The seller will, however, sell at any offer above the reservation price. Reserve Currency The foreign funds retained by a country9s central bank as a vehicle for settling international financial obligations is the reserve currency of that nation. Residuary Clause It is the provision in the will or trust agreement that disposes of all of the descendant9s property remaining after the payment of all ta es, debts, e penses and charges and the satisfaction of all other gifts in the will or trust agreement. Restitution It is the enforced payment of money, or its e$uivalent, to its rightful owner as established by law. Restoration $remium The premium charged to restore a policy or bond to its original value after payment of a loss is restoration premium. Restricted Account Any margin account where the debt balance e ceeds the ma imum loan value of stocks retained in that account is termed as a restricted account. Restricted Assets That money or other resources the use of which is restricted by legal or contractual re$uirements. Restricted &'ares These are common stock shares released under an agreement whereby they do not rank for dividends until some event has taken place&usually the attainment of certain levels of earnings. Restricted &toc% 0ption It is a privilege granted to an employee of a corporation to purchase during a specified period, at the market price at the date of the option, a specified number of shares of its capital stock. Restricted &urplus It is that portion of retained earnings which is not regarded as available for dividends, may be because of legal re$uirements or loan agreements. Retainer The payment to cover future services and advice, submitted in advance to the individual e pected to render services. Return Item It is a negotiable instrument, principally a che$ue, which has been sent to one bank for collection and payment and is returned unpaid to the sending bank. Return on 6et +ort' It is a ratio of an organi*ation9s net profit following ta es to its net worth, providing a measure of the rate of return on a shareholder9s investment.

Return on Total Assets It is a ratio of an organi*ation9s net profit following ta es to its total assets, providing a measure of the rate of return on, or productivity of, total assets. Return $remium It is the amount due to an insured if a policy is reduced in amount, canceled, or&if subject to audit& the yields a finding of less e posures than the original estimates. Revalidated 6otes The term indicates the paper money bearing an official overprint, stamp, or other mark to indicate its renewed status as legal tender, despite the invalidity of the original note. Revenue Bonds $ayable It is a liability account that represents the face value of revenue bonds issued and outstanding. Revenue Tariffs These are the duties placed on imports with the goal of increasing revenues rather than protecting domestic industries. Reverse &toc% &plit The jargon signifies reduction in the number of shares outstanding. Reversing ntries It is an accounting procedure by which e$ual and opposite entries are made to an account to adjust the financial records of an association. This normally occurs after closing procedures. Revolving Account A line of credit that may be used repeatedly up to a certain specified limit is called a revolving account. Revolving Fund The money that is renewed as it is used, either by additional appropriations or by income from the programs it finances is a revolving fund. This ensures that a balance is retained in the fund at all times. Revolving Letter of Credit It is sort of letter of credit issued for a specific amount that is automatically renewed for the same amount over a given period. Revolving Loan A loan that is automatically renewed upon maturity without additional negotiation is termed as revolving loan. Ric' An e pression applied to security prices when the current market $uotation appears to be high 4or the income return low7 in comparison with either the past price record of the individual security or the current prices of comparable securities. Rigged .ar%et The situation that e ists when purchases and sales are manipulated to distort a normal supply and demand price.

Rig't of Action It signifies the right to enforce a claim in court. Ringing 0ut 2or up3 It is a mode of commodity brokers and commission merchants of settling e isting futures contracts by swapping sale and purchase contracts among themselves before the instruments mature and become deliverable. Ris% Analysis It refers to a scrutiny of the elements or sources of risk in a mortgage loan and of their efforts both separately and in combination. Ris% Capital The capitali*ation that is not secured by a lien or mortgage. also The long&term loans or capital invested in high&risk business activities. also The common stock from a new enterprise. Round Lot This is a unit of trading. An amount of stock less than the established unit of trading is called an odd lot. R$8 The abbreviation stands for "re$uest for price $uotation." Rubricated Account any earmarked account. Run It connotes an action of a large number of people. Runner ;e is an employee of the bank who delivers items to other banks in the same community, and who in turn may receive and bring back to his bank the items that the other banks may wish delivered there. Running in t'e &'orts It signifies purchasing different securities where there is a substantial short position for the purpose of advancing the price so that those short will purchase their securities back, or cover their short selling contracts, and hence lead to an additional climb in price. Runoff The closing prices printed by the stock e change ticker following the closing of the daily market.

&
&addled It refers to a situation of an individual holding an undesirable security which is bought at a price higher than the current market price. &ales C'arge It is the amount charged in connection with the issuance and distribution of shares of a mutual fund to the public. )ales charge is added to the net asset value per share in computing the offering price.

&ales Finance Company It is a financial organi*ation which deals in purchasing installment contracts from dealers and financing dealers inventories. &alt5Do)n &toc% It signifies an act of purchasing securities and retaining them over a long period of time, disregarding paper profits that evolve. &avings and Investment T'eory It is a concept which states that business cycles occur as people save either more or less than the amounts invested in new capital. &avings Rate It is a ratio that indicates the portion of income saved to income earned. &cavenger &ale It is an act of sei*ing of property by the state due to nonpayment of ta es. &crip It denotes any temporary document entitling its holder or bearer to receive stock or a fractional share of stock in a corporation, cash, or some other article of value upon demand, or at some specified future date. &crip Dividend It is a sort of dividend issued by a corporation to its stock&holders, which entitles the holder or bearer to receive cash, stock, or a fractional share of stock, or one or more units of the goods manufactured, upon presentation or at a specified future date. &ealing It is an act of simultaneously revealing the concealed bids out of which the most attractive one is accepted on the spot, without further bidding. &easoned Loan It is a loan that has been on the association9s books for a long period of time thus making evident that borrower9s credit is sound. &easoned &ecurity It is a security with a fine performance record in the paying of dividends or interest. It also stands for a security that is listed for a considerable period of time and sells at a relatively stable price. &econd Lien It refers to a lien that ranks on following the first lien and is to be discharged ne t. &econd .ortgage It is a mortgage on real property that already possesses a first mortgage. &econd $referred &toc% It is a series of preferred security issues that rank behind first preferred stock but in front of any third preferred issue or common stock in dividends or assets. &econdary .ortgage .ar%et It is an informally constituted market which includes all activity in buying, selling and trading mortgages among originators and purchases of whole loans.

&econdary 0ffering )imilar to secondary distribution, the term signifies selling by a large stockholder of a large block of shares. )uch a sale is fre$uently made on an e change in order to minimi*e the impact on the general market. &ecurities Company It is an association relying for its income on securities of other firms, which it retains for investment. It may also issue stocks and bonds for its own. &ecurities Depository It is a physical location or organi*ation where securities certificates are deposited and transferred by bookkeeping entry. &ecurity Capital )ecurity capital means the low&risk capital 4e.g. government bonds, mortgages7. &ecurity $rice Level It refers to the e isting price level for a specified stock, any group of stocks, or the general securities market at a given period. &ell 0ut It signifies an act to betray a person, organi*ation, or cause, usually for profit or special treatment. It also means to close out a customer9s account by selling securities or commodities held. &elling &'ort It is a method employed with the e pectation of a drop in the market price of the security. &e1uestered Account It is an account which has been confiscated under due process of law. The account is usually set up in a separate control as disbursement of such an account is subject to court order. &erial Bonds $ayable It is a type of liability account used for recording the face value of general obligation serial bonds issued and outstanding. &erial Issue It is a bond issue with a stagered maturity which is ordinarily due in e$ual annual amounts over a period of successive years. &ervice Corporation It is a corporation owned savings associations. It renders services and engages in certain activities for its owners, such as originating, holding, selling, and servicing mortgages. performing appraisal, brokerage, clerical, escrow, research, and other services. and ac$uiring, developing, or renovating, and holding real estates for investment purposes. &ervice Credit It is a sort of credit arrangement that allows bills to be paid at month&end for services provided during the month. &ervice Life The e pected time of usefulness of an asset is called its service life.

&ervicing In relation to mortgage financing, servicing signifies the performance by a mortgagee or his agent of the many services which must be taken care of while the mortgage is held by the institution. )uch as title search, billing, collection of interest and principal payments, reinspections and reappraisals of the real property, readjustment of the terms of the mortgage contract when necessary, and ta follow&up work. &ettlement Day It is the deadline by which a buyer of stock must pay for what has been bought and the seller must deliver the certificates for the securities that have been sold. &ettlement 0ptions These are the stipulations in a life policy or annuity contract for alternative methods of settlement in place of lump&sum payments. &ettlement $rice It denotes the daily price at which the clearinghouse clears all the day9s trades. &'are Draft It is an order by a credit union member to pay a third party against funds on deposit with the credit union and cleared through a commercial bank. &'are Loan It is a simple interest loan secured by funds on deposits at a credit union or a savings and loan institution. &'are Revenue These are the payments to the states and localities of a portion of the proceeds from the sale of certain federal property, products, and services, and payments to the territories of certain federal ta collections derived within their boundaries or from transactions affecting them. It is similar to intergovernmental revenue. &'oc% Loss It is a loss larger than e pected. &'ort ;e is an individual who sells a futures contract in anticipation of purchasing it back at a lower cost. &'ort Bill It is a bill of e change payable upon re$uest, at sight, or within a brief period, usually less than !" days. &'ort Covering It is a transaction of buying a stock to return stock previously borrowed to make delivery on a short sale. &'ort Fall It denotes spending that falls sharply below projections, thus contributing to an economic sluggishness. &'ort 4edges These are sales of futures created as hedges against holdings of the spot commodity or product.

&'ort Interest It is the sum of the short sales outstanding in a security or commodity or on an e change. &'ort $osition It indicates the total amount of stock an individual has sold short and has covered, as of a particular date. It also refers to stocks sold short and not covered as of a particular date. 'n an e change, a tabulation is usually issued once a month listing all issues on the e change in which there was a short position of 6""" or more shares and issues in which the short position had changed by E""" or more shares in the preceding month. &'rin%ing &toc%s These are stocks of corporations that are bought by the firms of their own shares. This drastically reduces the number of shares outstanding. &ig't Bill of !c'ange It is a bill of e change that becomes due and payable when presented by the holder to the party on whom it is drawn. &ig't Rate )imilar to che$ue rate, sight rate is the e change rate tied to a demand draft or che$ue. &ingle Capital &tructure Company It is the company having only one class of security outstanding. &ingle Debit Reporting It is a method used by mortgage bankers for reporting the current status of its mortgages when making a regular remittance to an investor. &%imming $rices It is a high introductory price followed by a series of price reductions, designed to get all the trade the market will bear at one price level before lowering the price, as well as to appeal to the more price conscious consumer. &%ip ;e is the person owing money who has moved leaving no forwarding address. &%ip5$ayment $rivilege It is a privilege offered in certain mortgage contracts that allows the borrower to skip monthly payments at any time the loan is paid ahead of schedule as long as the loan is prepaid. &leeper The term stands for a slow&moving security that has a sound potential for growth. &lide It is a posting error in bookkeeping where an amount is wrongly recorded by unintentional placing of the decimal one or more digits to the right or left of the true decimal position. &lide 0ff It denotes a drop in the price of stocks. &lo) Asset It is an asset which can be converted into cash, near its book value generally after a lengthy passage of time.

&luggis' .ar%et It is a slow&moving, inactive securities trading where volume is unusually low and also very few stocks are traded with only minimal price fluctuations. &lump It suggests a short&lived decline in the activity of a business or economy. &mall Loan The term denotes a personal cash loan. &mall Loan La) It is a body of law that covers cash installment loans. It is administered by the state and protects both the borrower and the lender. &mart Credit Cards It is a credit card which deducts charges from a customer9s bank balance. &mart .oney They are e perienced and professional security traders who e ploit inside information to make profits at the cost of other investors. &mas' It signifies a severe drop in the market, approaching a panic. &no)balling It is a resulting transaction following stop that become market orders, during periods of either advance or decline. &ocial &ecurity It is the combination of social insurance plans sponsored by the government, and including old age and survivor9s insurance and unemployment insurance. These programs are financed through wage and payroll deductions. &oft It is a security or general market that moves toward a lower price level. &oft currency These are the funds of a country controlled by e change procedures, thereby having limited convertibility into gold and other currencies. &oft Landing It is situation where an economy slows down from a period of unsustainable growth to a slower but more manageable growth rate, and does so without a recession. &oft Loan It is a form of loan with generous terms of repayment and also occasionally carrying a low rate of interest. &oft .oney It signifies the paper currency, as distinguished from coinage or hard money.

&old Loan It is a sort of mortgage loan that has been sold to another institution but is still serviced by the seller. &old50ut .ar%et It is a market in which li$uidations of weakly held contracts has largely been completed and offerings have become scarce. &pecial Deposit It is a fund set up for paying interest, dividends, or other debts, or to insure the performance of contracts, and other deposits of a special nature. &pecial Dividend )imilar to e tra dividend, special dividend is a further dividend in stock or money in addition to the regular corporation dividend. &pecial Dra)ing Rig'ts It is the amount by which each nation is authori*ed to have its international checking account with the International -onetary %und go negative before the country must ask for additional loans. &pecial Interest Account The term is used by commercial banks to describe a savings account. &pecial 0ffering 'ccasionally a large block of stock that becomes available for sale obligate special handling on account of its si*e and the market in the particular issue. &peciality Fund It is a kind of investment company that concentrates its holdings in specific industry groups. &peciality &toc% It is a security from a particular industry or grouping. &pecie It denotes money in form of coin. &pecific Legacy It is a gift, by will, of a specific article of personal property. &pecific &ubsidy It is the per unit subsidy on a commodity. &pecific Ta! It is the per unit ta on a commodity. &peculative $osition It is an open position held by a trader that is unhedged. &peculative $urc'asing It is an act of purchasing items when prices appear lowest, with the e pectation that there will be increase in prices in near future and thus making possible a profit.

&pendable arnings These are net earnings after deductions for ta es. &pillover Trust It is sort of trust that by its terms is merged with or added to another trust or estate upon the occurrence of a certain event. &plit It refers to the division of outstanding shares of a corporation into a larger number of shares. &plit Close It signifies variations in price, for e ample, the #ow ?ones shows a higher closing price for the industrial averages, but a lower closing price for the utility average. &plit Commission It is an act of sharing a commission with someone else who has assisted in procuring the business for the broker, agent, or counselor. &plit Funding It is a scheme that combines the purchase of mutual fund shares with the purchase of life insurance contracts or other products. &plit Investment Company It is a close&end investment firm that issues two types of capital stock. The first 4income shares7 receives dividends from investments. the second 4capital shares7 receives dividend from the appreciation of investments. &plit 0rder It is a large order which is separated into smaller units that are sold over a period of time. )plitting may prevent a very large transaction of buying or selling a security or commodity that could cause substantial price fluctuation. &plit &toc% These are the new outstanding securities of a corporation resulting from a stock split. &plit5Rate Account It is a type of passbook savings account which pays increasing rate of interest, up to regulatory ma imums, for increasing account balances. &plit5up It suggest the issuance of two or more stock shares replacing each outstanding share, used for financial and ta purposes. &pot Delivery It signifies immediate delivery. &pot Delivery .ont' It is the nearest delivery month among all those traded at any point of time. &pot !c'ange Transaction It is a transaction of purchase or sale of foreign currency for ready delivery. In practice, market usage normally prescribes settlement within two working days.

&pot .ar%et It is a market where commodities are sold for cash and $uickly delivered. &pot $rice It is the price at which the spot commodity is selling. &pread The term has got several meanings attached to it. 'ne is giving two prices instead of one. Another is the difference between two prices. It also indicates two different options, a put 4price below the prevailing market7, and a call 4price above the prevailing market7, with both options pertaining to the same stock and e piring on the same day. Thus the trader is guaranteed a sale not lower than the put price if the market drops and a buy at a price not higher than the call price if the market increases. 8astly it also signifies the difference between the bid and asked prices of securities. &purt It means any short, but considerable climb in prices. &1uee*e It indicates a situation when interest rates are high and money is difficult to borrow. The term also signifies the results when people who have sold stocks short in a climbing market are obligated to buy back their short&selling contract obligations. &table .oney It is the currency that remains constant in terms of the items and services it can purchase. &tag ;e is an individual speculator who swiftly buys and sells shares for the purpose of profit without having any intention of retaining the securities for any length of time. &tagflation It is an economic condition where inflation is coe isting with economic stagnation. /rices increase during a period of minimal capital investment in e$uipment, research and development, and so on. &tamp Ta! It is a government ta collected through the sale of stamps that are affi ed to certain products. &tamped 6otes These are paper money issued with revenue stamps on it to add to the value. &tamped &ecurity It is a stock that has been stamped in order to disclose any alteration made on it since it was first released. &tandard $ayment It means a customer9s e act payment of contract amount. &tandard &toc%s These are securities of established and well&known concerns. &tate Capital It is the amount of capital contributed by stockholders.

&teady The term indicates that market prices are barely moving in any direction. &terling It is the currency of @reat Britain and the unit is pound sterling. It may also represent bills of e change which are drawn in terms of British currency. &toc% Borro)ed It indicates securities borrowed by one broker from another to result in delivery. )uch securities are subject to going interest and premium rates. &toc% Company It is a company in which stockholders contribute all the capital, pay all the losses, and share in the profits. &toc% Jobbing It signifies irresponsible or deceitful manipulation of the price of securities. &toc% 0ption It is an arrangement for compensating the top management of an organi*ation, in addition to salary, by giving them an opportunity to buy a specified amount of company stock, often below the market price. &toc% $o)er It denotes the power of attorney which permits a person other than the owner of stock to legally transfer the title of ownership to a third party. &toc% ,ield It is the rate of return on a stock based upon its market value as of a particular date and the dividend being currently paid by the company. &toc%5$urc'ase $lan It refers to a company plan for the purchase of stock by employees, in which the employer may or may not contribute. )uch offer is usually made below the market price. &top Limit 0rder It refers to a stop order which becomes a limit order after reaching the specified stop price. &top Loss It is an assurance given by one country, called the reinsurer, to another country, called the reinsured, that losses over and above an agreed upon amount will be paid by the reinsuring company. &top 0rder It indicates an order to buy at a price above or sell at a price below the current market price. )uch orders are ordinarily used to limit loss or to protect unreali*ed profits on a short sale. &top $rice It is that price at which a customer9s stop order to his broker becomes a market order. &topped at It denotes a price for a security which is often guaranteed to a purchaser or a seller by the specialist in it.

&traddle It refers to an act of purchase or sale of an e$uivalent number of puts and calls on a given underlying stock with the same e ercise price and e piration date. It also indicates an option allowing the trader to buy or sell securities at an agreed&upon price within a given period of time. &traig't Bill of Lading It is a type of bill of lading which cannot be negotiated thus identifying the individual who is to receive goods. &traig't Investment It is a preferred stock or bond, limited in interest or dividend rate, that is bought by reason of its income return and not for e pectation of any rise in value. &traig't Loan It is type of loan granted to an individual or other legal entity on the basis of the debtor9s general ability to pay. Any form of collateral security does not support such a loan. &traig't $aper It denotes unsecured notes, bills of e change and acceptances. &treet Bro%er ;e is an over&the&counter broker, as distinguished from a broker who is a member of an e change. &treet 6ame Any stock certificates in the name of a broker who trades in securities and is a member of an e change is said to be in "street name." &tringency It is a money market condition in which it is hard to obtain credit, accompanied by an increase in the rate of interest. &trip It signifies a stock option contract made up of two puts and one call. &trong .ar%et It refers to a market where there is a greater demand for purchasing than there is for selling. &tructural Inflation It is a form of inflation in which increase in prices are due to an uneven upward demand or cost pressures in a key industry, even when total demand remains in balance with total supply for the economy as a whole. &ub#ect Bid It refers to a bid that is negotiable, rather than firm. &ub#ect to C'e1ue It is any payable&on&demand che$ue where the customer need not inform the bank of his desire to withdraw funds. &ub#ect to &ale It is a stipulation contained in an offer to sell a property, which provides for the automatic

withdrawal of the offer if the property is sold before the party to whom the stipulation was made has accepted the offer. &ubmortgage It is the result of a pledge by a lender of a mortgage in his or her possession as collateral to obtain a loan for himself or herself. &ubordinated Debenture It is a special debenture whose bearer has a chance for payment lower than that for other creditors. As it holds a higher yield, it is considered a risky bond. &ubordinated Interest It refers to an interest in property that is inferior to another interest 4e.g., a second mortgage that is inferior to the first mortgage7. &ubrogation It is act of substituting one person for another, either as a creditor or the owner of the lawful right. )uch substituted individual succeeds to the rights, remedies or proceeds of the claim. &ubscription Rig'ts It is a privilege granted to the stockholders of a corporation to purchase proportionate amounts of a new issue of securities at an established price. )uch price is usually below the current market price. It also means the negotiable certificate evidencing such privilege. &ubsistence T'eory of +ages It is an economic theory which states that wages per employee tend to e$ual what the worker needs to maintain himself and his family. &ubstitution Account It is a scheme of the International -onetary %und which allows dollar holders to e change them for assets denominated in a basket of currencies known as special drawing rights. &uccession Ta! It denotes a ta on the privilege of receiving property, either by descent or by will. &upervisory .erger It is a form of merger where an institution in serious danger is forced to merge with a stronger one. &upplemental Agreement It is an amendment to an agreement e hibiting the additional terms to the agreement. &upporting t'e .ar%et It is an act of placing purchase orders at or moderately below the prevailing market level in order to maintain and balance e isting prices and also to encourage a price rise. &ur .ortgage It is a document demanding from a person who has defaulted on mortgage payments to show cause why the mortgage should not foreclose. &urvivors'ip Account It is an account in the names of two or more persons and from which withdrawal of funds is

permitted on signature of any one of them. The balance in the account belongs to the survivor or survivors on the death of the other or others. &uspended Trading It signifies a binding stock e change decision to stop trading. It is a result of an unusual occurrence, such as an une pected jump in buy or sell orders on all or several securities. &uspense Fund It is a fund established to account separately for distributing or disposing certain pending receipts. &)ap It means to e change or barter. It also signifies an arrangement between the central banks of two countries for standby credit to facilitate the e change of each other9s currencies. It also refers to a process by which portfolios are adjusted to lengthen or shorten maturities or raise or lower coupon rates to wring out the last bit of revenue. &)ap Fund It is a fund into which many investors put their own investments and receive a share in the pooled investment portfolio. &)indling It is an act of selling worthless shares through misrepresentation. &)ing It refers to movement in price of a security, either up or down. &)itc' 2Contingent3 0rder It is an order for the purchase or sale of one stock and the sale or purchase of another stock at a specified price difference. &)itc'ing It means selling one security and buying another security. &yndicated Loan It is a type of loan to which a number of banks around the world participate.

T
Tab It indicates an unpaid bill. Ta%e a Bat' It means to suffer a heavy financial loss. Ta%e on a Line It means to purchase a huge $uantity of stock of one or more corporations in set time period in confident e pectation of mounting prices. Target Company It is a firm that is selected by some other company and considered as attractive for the purpose of taking over or ac$uisition of such firm.

Ta! Abatement It indicates a reduction made in the rate of a ta or burden that is imposed improperly. Ta! Base It refers to that part of the value of an item, which can be ta ed. Ta! !ile 2 !patriate3 The term is used for an individual who chooses to leave his country rather than pay ta es. Ta! Foreclosure The term stands for sei*ing of property due to non&payment of ta es. Ta! 4aven It is a nation that offers low ta rates and other incentives to corporations of other nations. Ta! &ale It denotes sale of property sei*ed because of unpaid ta es. Ta! &earc' It indicates searching official records in order to find out whether there are any unpaid property ta es. Teller ;e is employee of a bank who as per the duty assigned to him acts as a personal contact between the customer and the bank. ;is duty is to handle cash for the depositor and the bank and to serve the depositor and the customer. Tenancy at &ufferance It is a type of tenancy in which the tenant of a real property lawfully possess the tittle or interest in such property and continues to hold the property even after termination of such tittle or interest. Tenancy at +ill It is a tenancy agreement that can be terminated at any time at the option of the lessor or lessee. Term Bonds $ayable It is a liability account maintained for recording the face value of general obligation term bonds issued and outstanding. Terminal .ar%et It is a commodity market dealing in futures. T'in Corporation The term is used for a corporation that owes a large number of debts as compared to its e$uity status. T'ird .ar%et These are stocks which are listed but are not traded on a securities e change. T'ird .ortgage It means a mortgage which is junior in comparison to the first and the second mortgages.

T'roug' Bill of Lading It is bill of lading that covers certain items that are moving from the point of origin to a final location although they move from one carrier to the other. Tied Loan It is a foreign loan granted with the condition that the proceeds can be spent by the borrower only in the nation granting such loan. Tig't .oney It refers to demanding of high interest rates in borrowing of money. Till .oney It is keeping of funds at a front desk or register that is different from monies held in a bank. Trade 6ame It is a name used by the organi*ation for conducting business. It also signifies a name by which the business or its goods and services are identified. Trading Floor It is large dealing area on the e change, which is used for buying and selling of stocks. Trading Limit It connotes a price limit specified, above or below which dealing in commodities is not permitted during a given day. Transfer Agent ;e is person who maintains a record of the name and address of each registered shareholder along with the number of shares owned by them. Transfer of "alue The concept is used by banking corporations. It offers the customer, various ways of paying for items that the customer needs but does not wish to pay cash. Treasury Cas' 4oldings These are the coins and currency that are held by the Treasury. Treasury &toc% It is the tittle to stock of a corporation that was formerly issued and has now been reac$uired by same corporation. ,eac$uiring may be by way of purchase, gift, donation, or any other mode Triangular Trade Trading between three countries with the intention of creating a favorable balance of trade for each of them is known as triangular trade. Trust C'arges It is the cost of ac$uiring trust and agency services, endured by customers or beneficiaries of trust institution. Trust Costs These are costs borne by the trust institution for rendering trust and agency services.

Tur%ey It stands for any venture that is poor or is profitless or an unattractive investment that appeared to be attractive in the beginning. Turn It is a term used to describe a full cycle of buying and selling securities or commodities. T)enty $ercent Rule It is rule of borrowing in banking sector according to which a customer who wants to borrow money from bank is re$uired to retain an average deposit balance that is e$ual to at least twenty percent of the desired borrowing. T)isting It is an unfair and unlawful way of inducing policyholders to permit a policy to lapse or cancel so as to replace such policy with another, to the disadvantage of the policyholder. T)o5Dollar Bro%ers These are brokers+members on the floor of e change e ecuting orders for other brokers who are having work more than their capacity at that time or for firms having no e change members on the floor. Tycoon A business person being e tremely wealthy and potentially powerful.

:
:ncollected Cas' Items These are che$ues which are in the process of collection and payment for these che$ues have not been received from the banks on which the che$ues are drawn. :ncovered .oney These are instruments such as paper money which are not redeemable or money which is not at all or only partially secured by specific reserve. :nderlease It means a sublease. :nderlying &toc% It is that stock which can be purchased upon e ercise of the option. :ndigested &ecurities These are securities which are issued without any need for or beyond the ability of the public to absorb them. :ndivided $rofits It refers to undistributed earnings which are available for paying dividends and for the writing off of bad debts or special losses. :nfunded Debt It is a debt for short&term or a floating debt which is not covered by a bond.

:nit Ban%ing It is type of banking in which each bank has a separate and distinct operation, management and control from that of every other bank. :nit &ystem It is a type of accounting system in which the records of the customer and the association are posted simultaneously. :nlimited Accounts These are large or reputable businesses who are eligible for any amount of credit. :nlimited .ortgage It is an open&end mortgage which is not limited to a fi ed amount. :sury It is the rate of interest that is paid for using another9s money, or the credit e tended, which e ceeds the legal limit allowed for that type of transaction by the state whose laws rule the legality of the transaction.

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"alori*ation It refers to an action taken by the government that leads to the establishment of a price or value for an item or service. "AT >alue&added ta . "ault Cas' It is a portion of cash on hand that is not re$uired for immediate use and is thus left in the vault of the banks as an immediate reserve. "enture Capital It represents funds obtained from the issue of new stock. It also stands for funds that are invested in enterprises, which usually do not have access to ordinary sources of capital. "isible &upply It denotes supply of commodities in licensed warehouses. "isible Trade >isible trade means that portion of trade and commerce among various nations, which is shown by records of transactions that involve e change of tangible things. "ostro Account It is a term used by a depository bank for describing an account with it by a bank in a foreign country. It is also means "0our account". "ouc'er C'e1ue It is type of a che$ue to which is attached a voucher which is used for describing the purpose for drawin the che$ue. "R. C >ariable&rate mortgage.

+
+ad It refers to roll of paper money. +age Free*e It is a limit on salary increment usually imposed by a government. +age &tabili*ation It is a program designed by government in order to stop wages from increasing rapidly beyond e isting levels. +all &treet It is a very popular name given for the Bew 0ork <ity business and financial district. +all &treet Journal It is one of leading newspapers in America which is popular for coverage of corporate, financial, and market news. +anted for Clas' It refers to a term that appears on the ticker tape which states that an individual is interested in purchasing a given $uantity of shares designated and is ready to pay for them on the same day. +are'ousing It refers to hypothecation of mortgage to a commercial bank as a security for purpose of repaying short&term loans. +as' &ale It is bogus transaction of sale of securities or commodities which are purchased and sold by the same individual in order to create the sensation of activity or volume of that particular item, be it securities or commodities. +asting Trust It is a trust of a property which is being consumed gradually. +atc' Filing It is procedure of drawing attention of underwriter on losses on small risks. +atered &toc% It is the stock released by the corporation for which it does not receive any payment. It also refers to corporate stock issued by a corporation for property at an overvaluation. +ea%54oldings It is the stocks retained by speculators. The speculators may use any reason to sell such stocks. +ent to t'e +all A person who has become bankrupt or corporation that has failed. +'en Issued The abbreviation stands for "when, as, and if issued." It signifies a conditional transaction in a security that is authori*ed for issuance but not yet actually issued.

+'ipsa)ed It means to have suffered a substantial loss at both ends of a security transaction. +'ite lep'ant It is a property whose maintenance is very costly thus making it virtually impossible to operate it at a profit and thus it is evident that loss in such a case is certain. +ide 0pening It is a securities situation in which there is a wide difference in the bid and the asked prices at the opening of the market day. +ido)5and50rp'an &toc% It is a type of stock that is high&in&come and non&cyclical with security but it is unrewarding in other ways as it is a slow market mover. +iped 0ut It stands for failure of a business. It also means an investment loss which is considerable in amount and also not irreversible. The jargon also refers to a situation when all cash and reserves available are e hausted. +ire Transfer It is an order to pay or credit money by telegraph or cable. +or%ing Asset These are assets invested in securities which fluctuate more or less with common stock prices in general. +raparound Annuities These are certain ta deferral schemes that allows an individual to shelter current interest income on bank savings certificate or shares in a mutual fund in a ta &deferred annuity administered by an insurance company. +riter 'ne who sells an option contract. +s Abbreviation of warrants.

<
<5C It is an abbreviation of e &coupon. <5Cl The abbreviation denotes e cess current liabilities. <5D It means e &dividend. <5Dis It denotes e &distribution.

<5Div Abbreviation for e &dividend. <5I It stands for e &interest. <5In Abbreviation denotes e &interest. <5Loan It is a type of loan made under a law other than a small loan law. <5Rts A &,ights. << =ithout securities or warrants.

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, Loan It denotes a loan made under a law other than a small loan or H loan law. ,an%ee Bond .ar%et It refers to certain issues floated in the 1nited )tates, in dollars, by reign government and corporations. ,ello)5Bac% It is a bank note, specifically a gold certificate. ,ield &pread It is a concept used by portfolio managers which means the difference in yields on varying stocks. ,ield to .aturity It is a rate of return given as a percentage when the investment is retained until maturity. ,o5,o &toc%s These are highly volatile securities which are high&priced and whose prices fluctuate greatly.

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=BB It is an abbreviation of Iero&based budgeting. =ero Based Budgeting It is a management techni$ue in finance which aims at redirecting funds from lower&priority current programs to higher ones, pinpointing opportunities for improving efficiency and effectiveness, reducing budgets while raising operating performance, and improving profitability. =ero5Balance Account It is an arrangement entered into in advance by a customer with its drawee bank, under which the

customer issues che$ues on account even though funds do not e ist in that account to cover the items. =ero5.inus 2$lus3 Tic% It is a transaction of any sale that takes place at the same price of the previous sale, but at a price that is lower 4higher7 than the earlier, different price.