-AASSETS are basically anything having commercial or exchange value that is owned by businesses, institutions or individuals.

-BA BACK END LOAD is a sales charge paid when investors sell back your shares to the fund. BASIS POINTS are the smallest measure used in quoting yield on bills, notes and bonds. One basis point is equivalent to 1/100th of 1%, or in other words, 1% of 1%. 100 basis points = 1% change. BEAR TRAP occurs when bears continue to sell the market, and are forced to buy at higher prices to cover their positions when a bear market reverses and suddenly turns bullish. BETA is a coefficient that measures a stocks relative volatility compared to the market. A beta value greater than 1 is more volatile than the market. Conservative investors whose main objective is to preserve capital should focus more on stocks with low betas. A stocks BID PRICE is the highest declared price at which a market maker is willing to buy a stock from a seller. BID-TO-COVER RATIO refers to the number of bids received in a Treasury auction against bids accepted. A high ratio usually over 2.0 times indicates that the bidding was aggressive and the auction was successful. BLACK MONDAY occurred in the 19th of October 1987 when the Dow Jones Industrial Average plunged 508 points, reflecting investment concerns on inflated stock prices, federal budget and trade deficits. BOND FUNDS are mutual funds that hold bonds. Such funds specialize in particular kinds of bonds, such as government, corporate, convertible, high-yield, mortgagebacked, municipal, and foreign or zero-coupon bonds. Bonds also produce capital gains, when interest rates fall and capital losses when interest rates rise. BONDS are long-term debt securities issued by a corporation or government entity that usually carries a fixed interest rate. A bond issuer agrees to pay the owner the amount of the face value on a future date and to pay interest at a specified rate at regular intervals. The BOOK-TO-BILL RATIO refers to the ratio of orders obtained for future delivery to orders that have been shipped immediately. This is commonly used in the semiconductor industry to see if chip orders ar rising or falling, and at what pace.

BOTTOM FISHERS are investors on the lookout for stocks that have fallen to their bottom prices before turning up. In extreme cases, bottom fishers purchase stocks/bonds of bankrupt or near-bankrupt firms. A BROKER is an entity that acts as an intermediary or middleman between buyers and sellers, and usually charging commission for commission for their services. A broker also transacts in behalf of clients securities under Philippine laws. A BUYBACK is a purchase of a long contract to cover a short position, usually arising out of short sales of a commodity. The BUYERS MARKET occurs when prices of a stock tend to fall allowing buyers to set the price and terms of sale. -CCAPITAL APPRECIATION is basically an increase in market value of a security. A CLOSED-END MUTUAL FUND refers to an investment company that issues a limited number of non-redeemable shares usually during an offering period (much like an initial public offering). COMMON STOCK refers to units of ownership of a public corporation. Owners are typically entitled to vote on the selection of directors and other important matters, as well as to receive dividends on their holdings. CONTANGO is a pricing situation in which prices of a futures contract get progressively higher as maturities get longer. The higher prices include carrying costs, including storage, financing and insurance. COUNTERCYCLICAL STOCKS are stocks that tend to rise in value when the economy is in recession. Traditionally, firms that belong to industries backed by stable demand (e. g. food and drugs) are considered countercyclical. The COUPON RATE is the stated interest rate on a bond, paid by a corporation or government entity throughout the bonds life. CURRENT YIELD is annual interest on a bond divided by the market price. It is the actual income rate of return as opposed to the coupon rate (the two to be held equal if the bond were brought in at par value) or the yield to maturity. CYCLICAL STOCKS are shares that tend to rise quickly when the economy improves and falls when the economy declines. This usually includes housing and automobiles, among others. -DA DAY ORDER refers to posted orders good only for the days trading session.

The DEATH VALLEY CURVE is a term used by venture capitalists to describe a start-up firms rapid use of capital, referring to the time period before revenues begin. DEBENTURE is a general debt obligation backed only by the integrity of the borrower and documented by an agreement called an INDENTURE. An unsecured bond basically is a debenture. A DEBT BOMB is a situation wherein a major financial institution defaults on its obligations, causing major disruption within the domestic and sometimes global financial system. DIVERSIFICATION refers to the methods used to spread risk by putting assets in several categories of investment. DIVIDENDS are distributed earnings of shareholders paid in the form of money, stock, or property. Among others, the amount is decided by the board of directors and is usually paid quarterly. Dividends must be declared as income in the year they are received. -EEQUITY is considered as the ownership interest of shareholders in a company. It is also known as stock or share. An EQUITY FUND is a mutual fund that invests primarily in stocks. EX-DIVIDEND RATE is the date on which a stock dividend is declared, typically three weeks before the dividend is paid to shareholders of record. -FFIXED INCOME usually refers to government, corporate, or municipal bonds, which pay a fixed rate of interest until bonds mature, and to preferred stock paying a fixed dividend. FRIENDLY TAKEOVERS refer to a merger supported by management and the board of directors of a target firm. FRONT END LOAD is a sales charge that is incorporated into the public offering price when an investor buys a mutual fund share. FUNDAMENTAL ANALYSIS is a method of valuing a company by looking at the items on its income statement and balance sheet, as well as the general status of the economy as a whole. The ratios and calculations of fundamental analysis enable investors to assess the intrinsic or fundamental value of a company, and determine whether a stock is an attractive investment target.

FUNGIBLES are securities that have not yet been settled. -GGAP OPENING is when the opening price for a stock is significantly higher or lower than the previous days closing price. GARBATRAGE is a stock traders term, combining the words garbage and arbitrage, for activity in stocks swept upward by the psychology surrounding a major takeover. GEARING is the ratio of borrowed capital against total capital employed. It is sometimes known as leverage. GENERAL OBLIGATION FUNDS are municipal bonds backed by full faith and credit (which includes taxing and further borrowing power) of a municipality. A GIFFEN GOOD is a good that goes against the law of demand. When prices of Giffen goods increase demand increases instead of falling as would normally be expected. In the same manner, when prices decrease, demand decreases as well. A classic example would be staple foods that are bought by impoverished families (e.g. rice) which, if prices rise, would even be consumed at a higher rate, and diminishing their capability to buy more nutritious foods. GLAMOR STOCK is a stock that has a wide public and institutional following. These are firms that produce steadily rising sales and earnings over a long period of time and move faster than market averages. GOLDEN HANDSHAKE is a generous payment by a company to a director, senior executive or consultant who is let go before any contract expires because of a takeover or other development. GOLDILOCKS ECONOMY was a term coined in the 1920s to describe an economy that was, in the words of the titular character, not too hot and not too cold. This typically describes an economy that enjoyed steady growth with nominal rates of inflation. GOOD TILL CANCELLED are a brokerage customers orders to buy or sell a security, usually at a particular price, that remains queued for seven calendar days beginning the day they were posted. GREENMAIL is a New York Stock Exchange term, referring to the payment of a premium to a raider trying to take over a company via a proxy contest of other means. By accepting the payment, the raider agrees not to buy an more shares or pursue the takeover.

The GROUP OF FIVE (G5) are five leading industrial nations France, Germany, the United Kingdom, and the United States of America which meet time to time to discuss common economic problems. The GROUP OF SEVEN (G7), on the other hand, are seven leading non-communist industrial nations composed of G5 members, with the addition of Canada and Italy. Finally, the GROUP OF TEN (G10), also known as the Paris Club, includes Belgium, the Netherlands, and Sweden along with the original G7 members. These nations signed an accord in 1962 to increase the funds available to the IMF and aid member countries with balance-of-payment difficulties. GUNSLINGERS refer to aggressive portfolio managers who purchase speculative stocks often on margin. -HHAMMERING THE MARKET refers to aggressive selling of stocks by investors who think prices are inflated. A HIGH-YIELD BOND is a bond that usually has a rating of BB or lower and pays higher yield to compensate for its greater risk. HOT ISSUE is a newly issued share of a firm that has great public demand. HUNKERING DOWN is a traders term for disposing off their big position in a stock. HYPOTHECATION is, in banking parlance, referring to pledging of property to secure a loan. This does not transfer the title, but only the right to sell the hypothecated property in the event of a default -IIMPAIRED CREDIT refers to the deterioration in the credit rating of a borrower, which may lead to reduced credit financing windows from lenders. IMPUTED INTEREST is interest considered to have been paid full in effect, even though no interest was actually paid. INACTIVE STOCKS are securities traded relatively infrequently. Low traded volumes make a security illiquid and investors tend to shy away from these. INCOME is considered as any amount in excess of the principal investment. An INDEX is a statistical composite or benchmark that measures changes in the economy or in the financial market. For the Philippines, the statistical index for the stock market is the PSEi, or the Philippine Stock Exchange Index.

INFLATION HEDGE is an investment designed to protect against the potential loss of purchasing power as a result of inflation. Some of good inflation hedge instruments include gold, real estate, and money market funds. INITIAL PUBLIC OFFERING, otherwise known as an IPO, is a corporations first offering of stock to the public. Groups that trade large volumes of securities represent INSTITUTIONAL INVESTORS. Some examples include mutual funds, pension funds, banks, insurance firms, college endowment plans, among others. INTER VIVOS TRUST is trust established between living persons. A TESTAMENTARY TRUST goes into effect once the person who set up the trust dies. INVALID VOLUME happens when the Philippine Stock Exchange rejects GTC postings if board lots change because of changes in price range. An INVESTMENT COMPANY is a firm that pools investors money in securities appropriate for stated investment objectives. It offers participants more diversification, liquidity, and professional management services than would normally be available to them as individuals. An ISSUE refers to stocks or bonds sold by a corporation or a government entity at a particular time. -JThe JANUARY EFFECT is a phenomenon when stocks historically tend to rise markedly during the period beginning at the end of December and finishes on the 4th trading day of January. The infamous JONESTOWN DEFENSE or a SCORCHED-EARTH POLICY is a term used by overseas traders to refer to tactics taken in by management to ward off hostile takeovers. An example case is that a firm may try to sell valuable assets or take on a huge amount of debt to make the firm undesirable to a potential acquirer. The term acquires its name from the infamous Jonestown mass suicide incident perpetrated by Jim Jones in Guyana. A JUNIOR ISSUE refers to the issuance of a debt or equity that is subordinate in claim to another issue relative to dividend, interest, principal or security in the event of liquidation. Government debt that is refinanced and matures in 1-5 years through the issuance of new securities that will mature greater than 5 years is termed as JUNIOR REFUNDING. -K-

A KICKER, also pejoratively known as sweetener, is a term used for added features of a debt obligation to improve the marketability of an offering through the prospect of equity participation. Examples include bonds that can be converted into shares of stock, rights and warrants. The KONDRATIEFF WAVE theory was made by Soviet economist Nikolai Kondratieff in the 1920s, where he stipulated that Western capitalist economies were prone to major up-and-down supercycles that could last up to 50-60 years. -LThe LAFFER CURVE, named after US economics professor Arthur Laffer, indicates that economic output will grow if marginal tax rates are reduced. LAISSEZ-FAIRE, literally meaning allow to do in French, and pronounced as lazy-fare, is a doctrine of the capitalist system, stipulating that minimal interference from the government in business and economic affairs will bring about a better economy as compared to controlled economies. LEMON INVESTMENTS are supposedly promising investments that instead produce dismal results, thereby failing to live up to set expectations. LEVERAGED BUYOUTS occur when a small group borrows money to finance purchases of shares in an acquired firm. The loan is ultimately repaid using the cash generated from the purchased firms operations or liquidation of the purchased firms assets. A LIABILITY is a claim on the asset of a company or individual, excluding ownership (equity). LIQUIDITY is the ability to buy or sell assets quickly in large volumes without substantially affecting the asset price. LOAD is a sales charge paid by investors who buy shares in a load mutual fund or annuity. -MThe MAIN BOARD LOT refers to multiples of the board lot required to trade in the main board. Also, required lots usually change depending on the price range of a particular stock. MANAGEMENT BUY-IN involves the purchase of an external investor of a controlling interest in a firm that chooses to retain the existing management. A MAPLE LEAF is a bullion coin minted by the Canadian government in gold, silver and platinum, all precious metals. This bullion coin is one of the actively traded

coins in the world along with the American Eagle, South African Kruggerand, among others. The MARGIN is the amount of equity required to open or maintain a position in a given security. The term may also refer to the amount of equity required to maintain all positions in a brokerage account. MARKET TONE refers to the general health and strength of a securities market. Narrow spreads or gaps between the bid and ask price indicate good market tones. MATRIX TRADING is a form of bond swapping wherein traders take advantage of temporary aberrations in yield spread differentials between bonds of the same class, but with different ratings or between bonds of different classes. MONETIZING DEBT refers to financing the local debt by printing new money, which causes inflation. The MONEY MARKET is a market for short-term debt instruments. MONOPSONY is a condition when one buyer dominates the market, forcing sellers to agree on the buyers terms. This is also the opposite of a MONOPOLY, wherein there is only one seller of a good, and all buyers have to agree on the price of the good that the monopolist dictates. MUNICIPAL BONDS are debt instruments issued by local government units such as states, municipalities, and other political subdivisions. ---------NA NARROW MARKET happens on the event that there is light trading and greater fluctuations in prices relative to volume. NATIONALIZATION broadly refers to a takeover of a private firms assets or operations by the government or any public corporation/institution. For developed countries, industries are nationalized when members strive to obtain government subsidies to survive. If an investor borrowed money at 10% and bought a bond with a yield of 8%, the investor is said to be incurring a NEGATIVE CARRY in other words, the cost of the security (bonds, stocks, etc) is greater than the yield (or revenue) that can be earned. When yields on a short-term security are higher than the long-term tenors of the same quality, a NEGATIVE YIELD CURVE exists. Also, negative yield curves, or inverted yield curves are said to be historically correlated to a following recession.

In that sense, negative yield curves are used to predict when recessions have a possibility of happening. Assets set aside for a persons retirement are often called NEST EGGS. These funds are usually invested in conservative instruments to provide the retiree with a secure standard of living while earning gainful interest in the process. NET ASSET is the difference between a companys total assets and liabilities. In simple terms, this could also mean the owners equity or net worth. NET ASSET VALUE is the market value of a share of a fund. Mutual funds compute these values every day in order to accommodate market changes. In the process, they also include other factors such as operational costs and other fees that the mutual funds provider might charge. In any case, the net asset value will also reflect market prices. NET INCOME is the gains that are realized by investors. These are usually computed by subtracting total net revenues from total costs. This is the take home pay that investors will usually get, unless the government will still tax net income. A method to evaluate investments is through the use of the NET PRESENT VALUE (NPV) of an investment. All cash inflows and outflows are calculated based on a discount rate or a required rate of return. An investment is said to be acceptable if the NPV calculated is positive. Global institutional fund managers called their 50 most favored stocks as the NIFTY FIFTY. These selected stocks tend to have higher than market average P/E ratios and were popular during the 60s and 70s bull markets. Stock market activity that is caused by circumstances not reflective of general sentiment is called NOISE. Much like its auditory namesake, these price and volume fluctuations that seem to be unrelated to general market sentiment can confuse investors in interpreting the direction of the market. NONCONTRIBUTORY PENSION PLANS can refer to pension plans that are totally financed by an employer and employees are not expected to contribute. NOVATION refers to changing a member of a contract with another member, effectively creating a new contract using the same rules as the previous contract, only with different parties. It can also refer to changes in obligations between the same parties. -OODD LOT is a quantity of shares less than the specified board lot requirement, or is less than the normal trading unit for a stock.

OLIGOPSONY happens when a few buyers are able to control prices by controlling their demand. OLIGOPOLY as the opposite occurs when a few sellers control the supply of a good or service. Fund managers calls a stock a ONE DECISION STOCK if a stock issue has sufficient fundamental quality fit for a buy and hold strategy. Investors who refrain from investing due to market uncertainties are termed to be ON THE SIDELINE. They usually keep their money on short-term financial instruments and investments that are liquid enough to be accessed immediately once opportunities in the stock markets arise. OPEN-END MUTUAL FUNDS are types of mutual funds that are not restricted on how many shares will be issued. Usually, if the demand for the fund is very high, the fund managers will continue to issue fund shares no matter the number of investors. In the opposite side, open-end funds will also buy back the shares readily when the investors wish to sell their shares. Majority of the mainstream mutual funds available in the market right now are open-end. An OPEN OUTCRY is a term used in commodity exchange to denote the shouting out of buy or sell offers to the market crowd. OPTIMUM CAPACITY denotes the level of output of manufacturing firms that produce the lowest possible cost in producing one unit of output. In this case, production is at its most efficient. A stock is OUT OF LINE if the stocks price is too high or too low relative to other stocks of similar quality. OUTSTANDING SHARES are shares issued by a company and held by the public. -PThe PAC-MAN STRATEGY occurs when a target firm to be acquired defends itself by buying the common shares of the acquiring company. This is used to thwart any takeover attempt. The PAR VALUE of a security is the value assigned by an issuing corporation for its own issued securities, namely stocks and bonds. A PARTIALLY CANCELLED posting refers to unmatched postings that were cancelled by customers themselves. The PAYMENT DATE is the date on which a dividend is paid to shareholders who purchased the stock before the ex-dividend date. PERPETUAL or ANNUITY BONDS are bonds that have no maturity dates, are nonredeemable and pays a steady stream of interest in an indefinite amount of time.

A PORTFOLIO is a combined holding of different kinds of securities, usually composed of different kinds of stocks, commodities, real estate assets and other kinds of assets. These are held by individuals or institutional investors. PREEMPTIVE RIGHTS refer to rights that give shareholders the ability to maintain their percentage ownership of a corporation in the case of new issuances of additional shares of the same class to the public. PREFERRED STOCKS are a class of stocks that pay dividends at specific rates. What makes it more special is that companies place preferred stockholders priority in payment of dividends and liquidation of assets, at the cost of lack of ownership in the company (due to most preferred shares not giving the right to vote as owners). These stocks are also touted as hybrids between common stocks and bonds. The PRICE-EARNINGS RATIO (P/E) reflects the ratio between the prices of the stock dividend against its earnings per share. The higher the P/E ratio, the more investors are paying (signaling a more expensive stock). A high P/E ratio signifies that the stock is in demand, or it could also signify that they are willing to pay more to acquire the stock (despite the level of earnings that they could get from owning the stock). In turn they will be expecting more earnings growth from holding such stock. -RRECORD DATE is a book reconciliation date on which shareholders must officially own shares in order to be entitled to a dividend. REPURCHASE AGREEMENTS, also called repos and buybacks, are agreements between a seller and a buyer whereby the seller agrees to repurchase securities at an agreed upon price within a period of time. In such cases, both parties are hoping that prices will be on their favor, and as such, repurchase agreements are done usually to protect themselves against price fluctuations. RETURNS are amounts in excess of investment. RETURN ON EQUITY (ROI) refers to the amount earned on a common stock investment for a given period of time, expressed in percentages. ROI tells stockholders how much of their money is being employed by the company, and how much the company has been earning as compared to the level of equity that the company has. RISK is defined in finance as the measurable possibility of losing or not gaining value. Unlike in common terms, risk is given a derivative measurement based on may factors in order to produce a usable measure. -S-

SALES CHARGES are fees paid to a brokerage house by a buyer of shares. The SANTA CLAUS RALLY phenomenon is an observed event during the dates between the Christmas season and New Years Day wherein stock prices surge upward. This phenomenon is somewhat related to the January effect as it precedes the latter. There are numerous explanations attributed to the phenomenon, mostly relating to happier sentiments during the season, as well as the increased spending and potentially increased company incomes due to the holiday season. A SECTOR is comprised of a certain group of stocks usually found in one industry or are similar enough to be considered as part of a general category. A SECURITY is offered collateral given by a debtor to a lender to secure a loan. It is also called collateral security. SHAREHOLDERS are owners of one or more shares of stock in a corporation. SHARES are units of equity in a corporation. SHARK WATCHER is a term used by overseas companies for people or institutions that specialize in early detection of potential takeover activities. SLEEPERS are stocks that currently receive little investor interest but have significant prospects or potential gains in price once it is duly given notice by the market. They may also refer to stocks that do not receive attention yet perform well in the market. STOCKS represent a unit of ownership of a corporation. In owning a unit of the corporation, stockholders therefore have a claim of ownership in the corporations earnings and assets proportional to the amount of stocks that they hold in their name. The SAUCER pattern is a distinct pattern in technical charting that is produced when a price of a security has already formed a somewhat long bottom line but has started to move up already. SYSTEMATIC RISK refers to market-related risk factors affecting the market as a whole. -TThe stock TICKER is a system that produces a running report of trading activity on the stock exchange. It is also called a ticker tape due to its appearance as a running string of data. TRADING is the buying and selling of goods and services among companies, states and countries.

TREASURY BILLS are short-term securities with maturities of one year or less, and are issued at a discount from its face value. Also called T-bills, these have tenors or maturities of 13 weeks, 26 weeks or 52 weeks, more commonly known as 91-day, 182-day, or 364-day bills. TREASURY BONDS are long-term debt instruments with maturities longer than 10 years. They also issue coupons and may be sold at a discount, at a premium or at par value. TREASURY NOTES are intermediate securities with maturities of 2 to 10 years. Also called T-notes, these have coupon rates like corporate bonds. They can be sold in the secondary market at a discount, at a premium or at par value. -UUNDERWRITERS are investment bankers or members of an underwriting group that agree to purchase a new issue of securities from an issuer to distribute to investors. They seek to make a profit from the underwriting spread, or the difference between the price of the newly issued securities and the selling price given to investors. UNSYSTEMATIC RISK pertains to company-specific risk factors that are inherent in each investment. An example of such risk would be the risk of employees performing a strike which may potentially paralyze operations. -VVOLUME refers to the total number of stocks shares, bonds, commodities and futures contracts traded in a particular period. -WWARRANTS are a type of security usually issued together with a bond or preferred stock. It entitles the holder a proportionate amount of common stock at a specified price which is usually higher than the market price at the time of issuance, for a period of years on in perpetuity. -YYIELD refers to returns on capital investments. YIELD TO MATURITY is a concept used to determine the rate of return that an investor will receive if a long-term, interest-bearing investment is held until its maturity date.