jargons in finance

8/13/2019 Jargons in Finance

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Jargons in Finance

A

A1It means the highest class rating.

AADThe abbreviation stands for "At a discount."

ABIt is the abbreviation of "Bond Adjustment."

Absolute AdvantageIt signifies an advantage of one area over another in respect of costs of manufacturing an item interms 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 bepaid in total.

Acceptance Liability Ledger A ledger containing the list of bills accepted for each customer of bank in form of an account thatcontains his name, address, date, line, credit number, acceptance number, bill amount, totalamount accepted or epired, epiration date and payment date.

Accession RatesIt 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 echanges and commodity echanges to settle the account betweenmembers.

Accounting Rate of ReturnIt is a ratio derived by dividing income for a period by the average investment that has occurredduring that period.

Accrued Depreciation#epreciation occurred during a specified period of time.

Accrued Dividend#ividend earned but not declared or payable.

Accrued IncomeIncome 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!esTaes on real estates that are determined as per the value of the property.

Ad#unct AccountIt is an account which adds to another eisting account, represented by transfers from anotheraccount.

Ad#ustable $eg A system that permits changes to be made in the par rate of foreign echange after a country hashad long&run dise$uilibrium in its balance of payments.

Ad#uster 'ne who seeks to find an appropriate solution to customer(s complaint regarding service oraccuracy is known as an adjuster.

Advance Bill A bill of echange 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 echange for determining the due date of payment of bill.

AgencyThe term describes certain types of accounts in trust institutions.

Aggregate Corporation A venture incorporated by more than one stockholder.

Aggregate DemandIt is the total of personal consumption ependitures, business investments, and governmentspending.



Aggregate &upplyIt refers to the capacity of a country(s total resources to produce real goods and services.

Aggressive (ro)t' FundIt represents the mutual fund with investment objective of capital appreciation.

AgioThe sum given above a nominal value, for the echange of currency of one nation with that ofanother nation. It also means rate of echange among different countries.

Alien Company A company which is formed and operates under regulations of a foreign country.

Allonge A paper affied 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 suchaccount without further authority from others.

Alternate DepositorsThey 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 theetinguishment of an asset at the end of specified period.

Amorti*ed "alueIt 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 ependitures in a government(s budget shouldbe balanced or brought into e$uality each year.

Annual $ercentage RateIt is the cost of credit on a yearly basis epressed as a percentage.

Annual +age A minimum income guaranteed for total number of hours of employment during a year.

Annual ,ieldThe percentage of return or income in form of dividends+ interest which an investment yields eachyear.

AnnuitantThe 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, orfor specified number of years at specified ages for each se which is computed on the basis ofassumed 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 usedto purchase an annuity at a specified age.

Anticipation-aking charges against an income or profit before such gain is actually reali*ed )ettlement ofan 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 asideof a sum of money for paying certain known or anticipated ependitures.

ArbitrageThe 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 asdescribed in the shipping documents.

As arnedThe term describes the basis of income of a customer who is not paid on a regular basis&that isbusiness&for&self.

As per AdviceThese are words found on a bill of echange indicating that the drawee has been informed thatthe 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 forsale.

Assented &ecurities)ecurities whose owners have agreed to permit changes to be made in the status of thosesecurities.

Assessable &toc%)ecurity which is subjected to an assessment order because of corporation(s reorgani*ation orinsolvency.

Asset CurrencyBank notes which are secured by the general assets and not any particular assets of the issuing

bank.

AssimilationIt means the completed distribution of new shares or securities to the public by the underwritersof the issue and syndicate members.

Associated Ban%sBanks which are associated through membership in a clearinghouse association are calledassociated banks.



Assurance A payment of a stated sum at a given time on payment of a premium at regular intervals by thoseassured+ concerned.

At CallThe 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 ofpurchase order, the jargon indicates buying at the specified price or at a lower price.

At &ig't A term used in a bill of echange or other negotiable instruments which states that the instrumentis due for payment upon presentation or on demand.

Attac'ed AccountIt is an account free*ed by a court order and payment from such account can be made only withthe consent of the court.

Attac'ed Ledger A ledger maintained for recording details of attached accounts.

Automated Clearing'ouseIt is a computeri*ed facility operated by member depository institutions to process paymentorders in a machine&readable form.

Automated Teller .ac'ine A machine used for processing transactions such as accept deposits, allow withdrawals, facilitatetransfer of funds between accounts, accept instructions to pay third parties in a transactionbetween 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 businesscycle without any involvement of government.

Availability DateIt is that date on which che$ues payable at out&of&town banks are considered to be collected andavailable for withdrawal by customers.

AverageIt means buying or selling of more shares, items or others with the intention of getting a betteraverage price.

A)ard

It signifies acceptance of a bid or assigning a project on the basis of offer made. It also meansaccepting a competitive bid by a borrower for a security issue in the form of notification to thehigh&bidder investment banker or syndicate.

A,The abbreviation stands for Annual 0ield.

B



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 besent when becomes ready without re$uiring the customer to reorder the items.

Bac%door FinancingThis is practice that enables a government agency to borrow from the 1.). Treasury instead ofdepending on congressional appropriations.

BailIt 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 ReceiptIt is receipt given by a bailee to a bank which holds tittle to the goods. The bailee being thecustomer of that bank is then allowed to sell those goods for the amount owed to the bank.

BailoutIt is an illegal act in which corporate monies are provided to shareholders payments which aresubject to ta at desirable capital gains rates.

Balance of $aymentsIt is statement which compares all financial transactions of a country and its population with that

of other countries of the world.

Balance of TradeIt refers to the difference between imports and eports of a nation over a period of time.

Balanced BudgetIt is a budget for a period in which the future ependitures for that period are matched by theepected revenues for that period.

Balanced FundIt refers to a mutual fund in which the investment policy is of "balancing" its portfolio normally byincluding bonds, common and preferred stocks in its investment policy.

BalloonIt is lump&sum amount owed to a loaning bank by a home borrower after the epiration of homeloan period.

Balloon LoanIt is kind of loan in which small payments are made during the term of the obligation.



Balloon .ortgageIt is a kind of mortgage which allows for payments which do not completely amorti*e the loan atthe time when the mortgage contract terminates.

Balloon $aymentIt is huge amount of etra payment that may be charged on the termination of a loan or lease

period.

BallooningIt refers to manipulation of prices for the purpose of increasing the prices beyond safe or realvalues.

Ban% AcceptanceIt is an accepted bill of echange or draft that is signed by a bank.

Ban% CallIt refers to a re$uest made by a government statement for a bank(s balance sheet for a specifieddate.

Ban% C'eueIt is a che$ue drawn by a bank on itself with signature of a duly authori*ed officer.

Ban% for International &ettlements 2BI&3It is an organi*ation established in !23 and located in Basel, )wit*erland. This organi*ation wasestablished for the purpose of fostering co&operation among world central banks, as also to seekopportunities for the development of financial activities among governments of different nationsand 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% RateIt is a rate of discount fied by the national bank of country for the purpose of rediscounting ofeligible paper.

Ban%able BillIt 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 &ecuritiesThese are securities like stock which move in the same direction as the market and areconsidered to be representative of the market.

BarometersThese 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 .oneyIt means that currency which does not earn any interest or other forms of interest.



BaseIt refers to any bullion, coin, or metal which is adulterated. It contains inferior or less valuablemetal 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 RaidIt 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 $olicyIt is policy to discourage imports by using certain effective means which includes increasingtariffs.

BetaIt is a measure of stock(s sensitivity to the movement of the general market 4)5/ 67 in eitherdirection 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 forsale whereas asked refers to the $uotation made by a seller for the purpose of sale of suchproperty.

Bilateral .onopolyIt is a type of market condition where there eists only one purchaser for a product or service andthere is only one seller who controls the creation and supply of that product or service.

Bilateral $ayments AgreementIt is an agreement entered into by two nations or their central banks in order to channelise all orsome specified settlements between themselves through certain special accounts. )uchagreement is normally subjected to a reciprocal credit margin 4swing7.

Bill Bro%er Any financial dealer in bills of echange is called a bill broker.

Bill of Credit A re$uest in writing by an individual to a bank for delivery of money to the bearer of suchinstrument either on the credit or on the account of the writer of such re$uest.



Bills of Credit A term formerly used to denote paper money issued by the government but has now becomeobsolete.

BimetallismThe term stands for a double standard of metals used in coins.

BI& Abbreviation of Bank for International )ettlements.

Blac% CapitalismIt 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 AgreementIt is an agreement for collective bargaining that is based on an industrywide negotiation.

Blan%et 0rder It is a preseason order for meeting epected buyer demand.

BlastedIt means a person without money.

Blind ntryIt is a bookkeeping entry in which only the accounts and the amounts 4whether debit or credit7 arestated 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'ipIt is a term used in stock market used for describing a corporation that maintains a good dividendreturn 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 purposeof regulating the sale and issuance of securities. -oreover it aims at preventing fraud in the saleand distribution of securities.

Bond Amorti*ationIt means to indicate, in case of a bond, the premium paid over par value.

Bond- CallableIt is kind of bond issued that may be redeemed in full or part of it by the issuing corporation undersome specific conditions, before the issue matures.

Bond- CalledIt is kind of bond, callable which has been declared by the debtor to be due and payable on acertain date, before its maturity.



Bond- ConsolidatedIt is a kind of instrument of debt which is issued in order to replace two or more bonds that wereissued earlier.

Bond- ConvertibleIt is type of bond which offers the owner of such bond, a preferential right to echange it for other

securities of the issuing corporation at some future date and+or under certain conditions.

Bond- DebentureIt is type of bond which offers no specific security for repayment of the principal, i.e. no specificsecurities are set aside for repaying principal amount.

Bond- (ilt5dgedIt is a high&grade bond issued by a company which has an ability to earn good profit over a periodof years and is also prompt in interest payment to its bondholders.

Bond- IncomeIt is a kind of bond on which interest is paid only when earned by its issuing corporation.

Bond- IndemnityIt is type of bond which gives protection to the obligee against losses that result from theprincipal9s failure to fulfill his+her obligations. 'bligee is one for whom the principal hasundertaken to perform specified duties.

Bond- IndentureIt is an agreement in writing under which bonds are issued, and which states the maturity date,interest rate, and various other terms.

Bond- 0pen5ndIt is a type of mortgage bond of an issue which does not place any limit on the number of bondsthat can be issued under the mortgage.

Bond- $remiumIt is a bond that is sold above its face value.

Bond- $ublicIt is a bond that is issued by a governmental agency be it domestic or foreign.

Bond- &uretyIt is an covenant which states that in the event of default by the contractor or non&performance ofspecified acts within a stated period, the surety shall be responsible for fulfillment of such contractor liable to monetary compensation.

Bonded Debt

It is a debt that is represented by bonds.

Bonus AccountIt is savings account on which interest at the rate of interest on bonds is paid subject to thecondition that the customer is regular in depositing, maintains a specified balance for a particularterm or the customer fulfills other conditions of the account contract.

Boo%It is a notebook maintained by the specialist in a stock echange for recording buying and selling



orders at specified prices. It is maintained in se$uence of receipt that the specialist is left with byother brokers.

Boo%- CloseIt is the date on which the transfer books of a firm are closed by the transfer agent of that firm andthe list of stockholders is reviewed by him in order to recogni*e those who are $ualified to receive

dividends and vote.

Boo%- 0penIt is the date on which the transfer books of firm are opened by the transfer agent in order tocontinue the activity of transfer of stocks after they have been closed to determine the list ofstockholders.

BootIt is a payment made to the Treasury or a payment made by the Treasury which may benecessary in advance refunding in order to align more closely the respective values of the eligibleissues and the issues offered.

Bottomry

It is a loan granted on the security of lien on a vessel.

BountyIt is an incentive in the form of additional payments granted by a government to a particular sectoror to augment eport of certain items.

Brain &tormIt is a clever, instinctive idea or an instantly arrived solution to a problem.

Brea%outIt refers to a situation when a particular security rises above a specific level where there eiststrong selling resistance, or when a particular security falls below a specific level where there is astrong purchasing support.

Bro%en LotIt is odd lot that is usually less than ! shares of a stock.

Bro%er7s .ar%etIt is market condition where the brokers trade to a large etent on their own account but theinvesting public is commonly sluggish.

Bro%er7s Tic%etIt 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 thesecurity dealt in, price of the security and so on.

Bro%er5Dealer It is concern that is engaged in retailing securities to the public.

BubbleIt is an imprudent business endeavor in which the price of goods and services dealt in by thebusiness bears insignificant or no relationship to the value of the asset.



Bubble CompanyIt is a name given to a concern which is floated with the intention of cheating the public. The termis also used to describe a concern that did not intend to be honest and never had a genuinebusiness.

Buc%et &'op

It is an unlawful business in which the customers engage in betting on the increase or decreaseof stock prices on the regular echange. Although orders are not filled, profits and losses arebased on the actual price movement on the echange. The broker charges a commission for thiswork.

Budgetary ControlIt is scheme to achieve maimum profits from minimum capital investment by way of regulating alloperations of business.

Bullet maturityIssuer pays entire lump sum on the maturity of bond

Burn

It signifies deceiving a trade partner out of his profits.

BustIt is an economic condition where there is a drastic decrease in business activity. This depressionleads to low profits resulting in high unemployment and low incomes.

Butterfly &preadIt 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 backsome of its common stock if it thinks that the price is too low and that a return of capital toshareholders is the most efficient use of its money

Buy Do)nIt is situation where a lump sum of money is paid in advance by a builder to the bank in order toreduce monthly charges on the mortgage.

Buy 0utIt signifies purchasing of all the assets or the interest of an ongoing organi*ation owned byanother.

Buy Tic%etThe investment department uses this form, prepared in multiple copies, for instructing the orderdepartment in its concern to purchase a security.

Buyer7s .ar%etIt is a market where the supply is more than demand resulting in low or falling prices and wherethe buyers administer the prices and terms of sale.

Buyer7s .onopolyIt 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 AppreciationIt means an increase or other appreciation in the value of a capital asset.

Capital BudgetIt is a budget that lists the ependitures on capital items & such as on building, purchasing capitalgoods : and the sources of funds to meet those ependitures.

Capital 0utlayIt refers to ependiture on replacement, major alterations, addition to or ac$uisition of fied assetsbut it does not include epenses on repair.

Capital RatingIt is rating given by business organi*ation when appraising the net worth of a firm.

Capital ResourcesThese are resources, which cannot be generally used for meeting ependitures, and are usuallyfied 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.

CarnetIt is a document of international customs that allows import of specific items without charging anyduty on temporary basis into certain countries.

Carrying Bro%er A broker or commission house who maintains a client9s account.

Carrying .ar%etIt 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 "alueIt is the written down value of a fied asset which is derived after deducting accumulateddepreciation of such asset from its original depreciable cost.

Carrying50ver Day Any day of delivery, which is postponed.



Cas' Against DocumentsIt is a condition in the contract of sale according to which the purchaser must make payment forhis 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 etraordinarycharges, appropriation to reserves. )uch an adjustment is necessary to arrive at actual cashinflow and outflow, as these are only book adjustments that do not actually involve any cashinflow or outflow.

Cas' &aleIt is any transaction of sale of any securities or commodities paid in full with cash for immediatedelivery of goods. It also refers to a transaction on the floor of an echange in which the securitiesare to be delivered the same day and not in regular way in which the securities are delivered onthe fifth business day.

Cas' &'ortIt is a general ledger account which is charged with the cash shortages of tellers.

Cas' &urrender "alueIt is sum total of money that a bank pays on cancellation of its life insurance policy.

Cas' "alueIt is the amount that can be received by life insurance policy holder on surrender of the policy tothe insurer.

Cas'ier7s C'eueIt is a form of bank9s own check, which is signed by the cashier of that bank. It becomes a loanupon issue to the customer as it is payable from the bank9s own funds and not from the funds ofthe depositor to whom such a che$ue is issued.

Cats and DogsThe term is used to denote stocks that are highly speculative. It also signifies items, which do nothave 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 purchasewithout any warranty, the risk of loss lies on the buyer.

Caveat &ubscriptor 2"enditor3It is a 8atin )aying which means "8et the seller beware". In a contract with this clause the seller isanswerable for any alterations from the written contract unless he states no responsibility at thetime of making contract.

Caveator It stands for one who gives caution+warning.

Ceiling $riceIt is the maimum price of goods and services fied by the government usually during battling.

Certificate AccountIt is similar to a savings account in which fied 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. ;oweverthe customer is charged a penalty for premature withdrawal.

Certificated &ecuritiesThese are specific commodities approved by a commodity echange, which are held inwarehouses and certified for delivery on future contracts.

CertificationIt is an act of assuring by a bank that the drawer of a che$ue has ade$uate money to coverpayment on the che$ue issued and that monies have been set aside to discharge the incomingliability.

CFIt is an abbreviation for cash flow.

C'ain Ban%ingIt is form of multiple&office banking. In this system of banking one or more individuals control atleast three independently incorporated banks.

C'arge AccountIt is the line of credit, which may be used over and again up to a certain specified etent.

C'arge Account Ban%ingIt 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 ofassociation, 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 oftime.

C'attelIt stands for property other than real property. %or instance, movable properties are chattelspersonal and construction on real property is a chattel real.

C'ec% RateIt is the basic rate for foreign echange 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 andassessments.

Civil LoansThese are loans contracted by any state or municipal agency.

Claim AuditIt is an eamination 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 0ptionsIt is the options contracts of the same type that covers the same underlying security.

Clear TittleIt means good tittle or marketable tittle.

Clearance FeesIt refers to the change incurred in a commodity echange succeeding the clearing of a trade.

ClearingIt refers to transfer of cash and securities physically between the purchasers and sellers.

Clearing .ember ;e is a member of both clearinghouse and an echange.

ClearingsThese are incoming cash letters of items which must be proved, sorted, returned if necessary,and for which settlement must be made.

Closed AccountIt is an account in which debit and credit amounts are e$ual.

Closed CorporationIt is a corporation in which only few people, usually the management people, own all the sharesof such corporation.

Closed &'opIt is an agreement according to which only those employees are entitled to continue working whowere members in a union and were in good standing before they were hired to work.

Closed5nd Fund

It is a concern engaged in investment business and whose shares are traded on a securitiesechange or the over&the&counter market.

Closing CostsThese are epenses such as lawyer9s fee, inspection charges, tittle insurance that are related totransfer of real estate ownership and incurred by seller and buyer.

Closing &aleIt is a transaction in which an investor who had previously purchased an option states hisintention to li$uidate his or her position as a holder by selling in a closing sale transaction anoption 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 borrowerwaives his right of action to the chattel mortgage in the event of failure to pay the sum agreed inthe transaction.

Collapsible CompanyIt refers to a concern whose main purpose of establishment is to construct, manufacture, produceproperty, 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.



CollateralIt means a security left with the lender or creditor to guaranty the fulfillment of contract by theobligator.

Collateral &ecurityIt is a property security that is different from personal security.

CollectibleIt means something, which can be transformed into cash.

Collusive BiddingIt is a type of bidding by suppliers in which the suppliers have agreed to give similar or identicalbids to the potential buyers, after a mutual understanding among themselves.

Combined Financial &tatementIt is a financial statement in which the results of operations and the financial position of all thecompanies of a group that has a common management and control are combined and presentedafter eliminating the intercompany transactions.

Come AcrossTo pay money owed.

Commercial CreditIt refers to credit facility provided by associations to an organi*ation having business with suchassociations.

Commercial DraftIt is an instrument of payment of money in which the seller draws an order for payment on thebuyer9s account at a bank.

Commercial Loan

It is a form of loan facility, different from personal loans or consumer credit loans, which isetended to business units for the purpose of financing for inventory purchases and themovement of goods.

Commercial $ropertyIt is the property that is used for business purposes and which is different from properties used foragricultural, residential or other industrial purposes.

Commercial &toc%sIt refers to agricultural stocks of grain stored at major grain centers.

Commingled AccountsIt 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 4ouseIt 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 consignedto him and he negotiates their sale.



Commodity T'eory of .oneyIt refers to a concept which states that the value of money is determined by the value ofcommodity of which it is composed or which it represents.

Common .ac'ine Language 2.ICR3It 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 indesignated 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 &'eetIt is a balance sheet in which the details are not given but a complete and accurate reading of theassets, liabilities and capital of the concern is given.

ConglomerateIt is the outcome of a merger of two or more organi*ations generating different goods andservices. The main intention of such merger is to obtain a large economic base, achieve sound

management and ac$uire greater potential profit.

Consolidated Balance &'eetIt is balance sheet that depicts the financial position of a corporation along with its subsidiaries.

Consolidated &in%ing FundIt is a single sinking fund that serves more than one i.e. two or more, bond issues.

ConsolidationIt 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.

ConsortiumIt is an association of corporations formed to accomplish a combined aim or scheme that re$uiresinterbusiness cooperation and sharing of resources.

Consumer DebenturesThese are investment notes sold by a financial institution directly to the public.

Consumer Finance CompaniesThese are companies specially authori*ed by a state authority to provide reliable service toconsumers for installment cash loans.

Consumer $rice Inde! 2C$I3It is a measurement of the cost of living determined by the Bureau of 8abor )tatistics.

ContangoIt refers to the cost factors when calculating from one given period to a future point. It alsosignifies a basic pricing system in futures trading, a form of premium or carrying charge.

ContrabandThe term denotes unlawful or forbidden goods.



Conventional BillingIt is a system in which the customer is regularly provided with a detailed statement showing allpurchases, cash payments, purchase returns and allowances made during a particular period.

Core InflationIt 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 ecessive demand pressure.

Correspondent Ban%It is a bank that acts as a depository for another bank as it accepts all deposits and collectsvarious 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 ofgoods and services purchased by moderate&income families.

Cost T'eory of Capitali*ationIt is a concept of determining capitali*ation of a firm by owned investments in fied assets, theregular working capital re$uirement of the firm, advertising, and other related costs.

Cost5"olume $rofit AnalysisIt is a devise for measuring the functional relationship among the main aspects of profits. It is alsoused to identify the profit structure of an enterprise.

Coupon AccountIt is a type of credit granted whereby books of coupons that has a fied value are sold oninstallment payment basis. A coupon is that part of a bond, which is redeemable at a specifieddate for interest payments.

Coupon Ledger It is a ledger used by a bank or trust corporation for recording the receipt of money for payingcoupons, spending for redemption of coupons, and the number of coupons paid.

Coupon RateIt is rate of interest on interest coupons attached to a bond.

Cras'The term signifies an unepected and disastrous decline in business activity, security prices, andso on.

Cra)ling $eg

It refers to foreign echange rates which allow an automatic change in the par value of a nation(scurrency by way of minor increments either upward or downward, if in actual daily trading on theforeign echange markets the price in terms of other monies remain on the floor or ceiling of theestablished range for a given period.

Creeping InflationIt is a moderate but continuos increase in the general price level.



CremationIt signifies an act of burning in the fire certain documents of an organi*ation.

Cro)dThe term refers to the brokers on the trading floor of an echange and who are engaged intransacting business in securities.

Currency BandIt is an area cautiously defined by the government of a nation in which that nation(s moneyfluctuates on both sides of its official parity.

Currency BlocIt is a group of countries which use a common currency base.

Currency ConvertibilityIt refers to the capability of a nation(s currency to echange for gold and other currencies.

Currency $airtiesIt 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 DollarsIt is a term used for describing the actual prices of goods and services each year.

Current ReturnIt is the present earnings from any investment.

Current "alue AccountingIt is an accounting approach in which the individual assets of a business are valued in terms oftheir current prices rather than in terms of the cost at which they were actually purchased.

Cut 6otesThese are paper money issues that are officially cut or divided into two or more parts and each ofwhich is given its own value. 'verstamping usually indicates such value.

D

Daily Interest AccountIt is a type of savings account on which interest in paid on daily basis right from the date ofdeposit to the date of withdrawal.

Date of TradeIt is the date on which an order to buy or sell is eecuted.

DatingIt is a system of etending the credit period beyond the time limit for which it was originallygranted. This is usually done in order to induce to dealers to place advance orders for the comingseason.

Day LoanIt is a loan granted for one day to a broker for purchasing stock on securities being pledged ascollateral.



Day 0rder It is a type of order to buy or sell which epires at the end of the trading day on which it wasentered if it is not eecuted 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 TradingIt is an act of purchasing followed by selling of a security on the same day in order to avoid aholding position in the shares traded overnight or longer.

Dead AssetIt refers to that asset which does not produce any income under usual operations.

Dead .ar%etIt refers to a market in which there are minor price changes and low volume. It also means a dullselling day characteri*ed by low volume of activities, lack of interest from customers or variousother factors resulting in poor sales.

Dealer FinancingIt is an arrangement with a bank by a dealer of commodities according to which bank is re$uiredto finance the purchase of these commodities on their sale by the dealer.

Dear .oneyIt means presence of high rates of interest. It also refers to a situation when it is difficult to obtainloans because of the supply and demand for credit.

DebitIt is a list of the weekly premium life insurance agent which shows the premiums he or she isre$uired to collect. It also denotes that part of the purchase price of securities or commoditieswhich is covered by credit granted by a broker to margin customers.

Debit CardIt is a cash machine automator and a che$ue guarantee. It is a recently innovated system ofwithdrawing from bank, which allows a bank customer to withdraw cash at any hour from anyaffiliated automated teller machine in the country. It also permits purchases without paying incash, from funds in the deposit account and without incurring revolving finance charges for credit.

Debit Tic%etIt is a bookkeeping note used in a bank which is used to describe in detail the transaction thatleads 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 orother funds that are necessary for operations or for discharging current or other liabilities.

Debt &ecuritiesThese are fied obligations that confirm a debt and are payable on a specified future date. Aspecific rate of interest is payable periodically.

DebteeIt describes a creditor.



Debtor 6ationIt is nation whose citi*ens, corporations and government owe more to foreign creditors than whatforeign debtors owe them.

Deceased AccountIt is the deposit account in a bank in the name of a deceased person.

Deceleration $rincipleIt is an economic statement which states that the current year9s increase in prices and wagesshould be in general at least a half percentage point less than average increase from the previousyear.

Declining BalanceIt is the balance of amount owned which decreases with each payment.

Declining Balance DepreciationIt is a method of charging depreciation in which higher amount of depreciation epense ischarged in the initial years and lesser amount in the later years. It is also known as educingBalance -ethod of charging depreciation and =ritten #own >alue method of charging

depreciation.

Decreasing CostsThese 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 aperson who will ac$uire it in reversion.

Defensive InvestmentIt is a type of investment policy which attempts at reducing the risk of eventual loss as well asreducing the necessity for special knowledge, epertise and constant attention.

Defer It signifies delaying payment to a future date.

Deferment C'argeIt is a supplementary charge on a precomputed loan which leads to in an etension of all fullyunpaid installments by one or more months and thus deferring the formal final interest maturitydate.

Deferment &'ortIt stands for the amount by which a payment falls short to pay the deferment charges beingassessed on an account.

DeferralsIt signifies collecting cash even before income is recogni*ed as being earned. It also signifiesdisbursement of cash before an epense is accepted as being incurred.

Deferred AssetIt is that asset which is not easily convertible into cash, subject to present settlement.

Deferred C'argesThese are ependitures written off over a period of time.



Deferred DebitsThese are accounts carried on the asset side of the balance sheet. These accounts record thoseitems, which are amorti*ed as charges against income over a period of years. It also recordsitems 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 postingIt 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 epiry of a certain date or beforea specified event takes place.

Deferred Ta!It connotes a ta liability accrued on income that is accounted for but is not subjected to incometa until a subse$uent time period.

Deficit FinancingIt is a step taken by government to make up the difference between government ependituresand revenues, by way of borrowing.

DeflationIt is an act of reducing the amount of money in circulation. It also signifies a decline in the generalprice level, which leads to an increase in the purchasing power of money.

Deflationary (apIt is the amount by which full employment supply eceeds demand thus leading to reduction inthe real value of a country(s output.

Defunct CompanyIt represents a dissolved organi*ation or a firm which has ceased to eist.

Delayed DeliveryThese are securities sold with prior understanding that delivery would not take place on thenormal clearance date.

Delayed ItemsThese 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 futurescontract.

Demand Deposit 2Ad#usted3It is balance remaining after deducting the che$ues in process of collection from the total of acustomer9s deposits in reporting member banks subject to immediate withdrawal but ecludesinterbank deposits and government deposits.

Demand DepositIt is an account in a commercial bank on which che$ues can be drawn and funds can be takenwithout giving any notice in advance.



Demand DraftIt is a draft that is payable immediately upon sight or presentation to the drawee.

Demand LoanIt is a type of loan that can be called for payment at any time by the bank making the loan as sucha loan has no maturity date.

Demand .ortgageIt is a type of mortgage that is payable on demand.

Demand 6oteIt is a type of note or mortgage that can be demanded for payment at any time by the holder ofsuch instrument.

Demand $riceIt refers to the maimum price that a buyer is ready to pay for a certain $uantity of a particularcommodity or service.

Demand5$ull Inflation

It is a situation of inflation in which the price level increases as a result of plenty of money chasingtoo few commodities.

Demoneti*ationIt is an act of withdrawing a specified currency from circulation. It also denotes an action taken bya commercial bank of reducing the number of government bonds and securities. This leads to anincrease in the value of deposit and paper currency, including central government notes.

DemurrageIt is an act of detention of a freight ship or car for a time period more than permitted for loading orunloading. 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 theplaintiff9s complaints but denies that the facts warrant a cause of action.

Depletion AccountingIt is an accounting branch which deals with natural resources, such as metals, oils, gas, etc, thatcould possibly be reduced to *ero over the years and pose particular problems in capitalmanagement.

Deposit Ban%ingIt is the activity carried out by a commercial bank dealing with deposits, receiving che$ues onother banks, remitting on che$ues forwarded for the purpose of collection, and paying outdeposits 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 thebank.

Deposit CurrencyIt refers to che$ues and other credit instruments that are deposited in a bank as the e$uivalent ofcash.



Deposit FunctionIt signifies the business of accepting money on deposit for safe&keeping and convenience.

Deposit InsuranceIt is insurance taken in order to protect the depositor against the risk of bankruptcy of a bank orsavings and loan institution.

Depositary ReceiptIt is a device that allows dealing of foreign stocks on stock echanges, in the event the othernation 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 ina bank.

DepositoryIt is an individual or institution recogni*ed as one to be confided with something of value forsafekeeping.

DepositoryThe term stands for a bank in which funds or securities are deposited by others, usually under theterms of a specific depository agreement.

Depreciated CostIt is the book value of a fied asset derived by deducting from cost, the accumulated depreciationand other valuation accounts that have the effect of decreasing the original epense to arecoverable cost.

Depressed .ar%etIt is a situation of depression in the market when the prices of goods or services are abnormallylow.

Derived DemandIt is the demand for an item that grows out of the wish thus fulfilling the demand for other relateditems.

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 &ecuritiesIt refers to those securities which are owned by investors who are not epected to sell them at

present.

DilutionIt is the effect of a reduction in earnings per share or book value per share. This is caused by thepotential conversion of securities or by the potential eercise of warrants or options.

Diminis'ing ReturnsIt 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 smallerincrease in production than the preceding application.

Direct DebtIt is debt incurred by a unit in its own name or an assumed debt.

Direct arningThese are earnings stated by a firm not showing any e$uity in the surplus earnings abovedividend payments of units or affiliated companies.

Direct !pendituresThese are payments made to recipients such as employees, contractors, suppliers, beneficiariesand so on.

DisagioIt refers to the charge made in order to echange depreciated foreign monies.

Disbursement &c'eduleIt 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%ruptcyIt is a legal order, which concludes the bankruptcy proceedings. Thus the bankrupt is relievedfrom all legal responsibilities for certain specified obligations.

Disclaimer It is a clause in a document which renounces or repudiates the liability of an otherwiseresponsible party in the event of either noncompliance by such other party to certain conditionsdescribed in the agreement or some other specified eternal conditions or losses incurred due todiscrepancy in the goods delivered and the weight or count made by the shipper.

DiscountIt refers to the amount of money deducted from the "face amount" of any instrument eligible forrediscounting. It also signifies the amount by which a preferred stock or any bond is sold below itspar value. It also means the relationship of a currency to another.

Discount CorporationIt is any banking or financial institution whose business includes buying and discounting of tradeand bankers9 acceptance, commercial papers, bills of echange and other eligible papers.

Discount LoanIt is a type of loan on which the interest and other charges are deducted from the face value ofthe loan immediately at the time of granting the loan.

Discount .ar%etIt is an open market for commercial papers and acceptances as different from bank9s discountsthat is for only its own clients.

Discounted "alueIt is the current value of any future payment that is due or receivable. It is calculated on the basisof a given rate of interest.



Discounting t'e 6e)sThe term signifies that when a stock9s price or the level of a major market indicator climbs or fallsin epectation of a good or bad occurrence, then barely moves when the actual developmenttakes 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 representativecomplete or partial authority to operate that account for the purposes of purchase and sale ofsecurities or any commodity. Instructions may be given regarding price to be paid or received,timing, selection and other specified limits.

Discretionary FundIt refers to the discretionary income increased by the amount of new credit etensions that maybe deemed disposable as a result of customer decision relatively free of past responsibility orburden of necessity.

Discretionary IncomeIt is that amount of money available for disposal after paying the necessary living costs.

Diseconomies of &caleIt is a situation which occurs when the costs of a business increases as a result of epansion ofbusiness activities.

DisinflationIt is the outcome of a scheme introduced for decreasing the general price level by way ofincreasing the purchasing power of money.

DisinvestmentIt signifies a reduction of capital goods.

Disposable IncomeIt is the net personal income of an individual available for consumption or saving and which isderived after deducting all kinds of taes 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 personalproperty under intestacy.

Dividend AppropriationIt is an amount declared payable out of retained income or the amount credited to a specialreserve for such dividends.

Dividend 0rder It is a form which directs the corporation to forward dividend che$ues to the address specified inthe form.

Dividend $ayout RatioIt is a ratio which is calculated by dividing dividends per share of common stock by earnings pershare of common stock.



Dividend Reinvestment $lansIt refers to a scheme in which customer9s dividends in a security are automatically reinvested bythe bank acting as an agent.

Do not ReduceThe 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.

DominionIt is an act of separation and passing of power over the property by the transferor to thetransferee in the event of transfer of property from one to another.

Double Counting 2ntry3It refers to counting of the same $uantity twice when evolving a total since every transaction inbook&keeping is entered two times. It also means a procedure used in ascertaining the grossnational product.

Double IndemnityIt 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'eoryIt is a theory of market analysis. It is based on the performance of the #ow ?ones industrial andtransportation stock price averages.

Dra)ing AccountIt is a certain sum of amount that is available to owners or salespeople to be utili*ed forepenses. )uch sum is then adjusted against future earnings.

Drive in Ban%ingIt is a facility offered by many banks in which teller9s windows facing the outside of the building orseparate outside booths, are maintained for the convenience of the depositors. )uch a facility isoffered due to traffic congestion, lack of parking space and such other time consuming reasonsand 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 nationalgovernment. This permits dual banking, where each independent factor cooperates with the otherto 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 offunds that one bank has on deposit with another bank.

DumpingIt is an act of selling surplus of any item in foreign markets well below cost in order to hurt foreigncompetition. @overnment of many nations formulate anti&dumping policies in order to protectdomestic sellers.

DuopolyIt is a type of industry in which there are only two business organi*ations selling identical itemsand both of them eercise control over the market.



DuopsonyIt is situation where there are only two buyers for a similar item.

Dutc' AuctionIt is a type of auction sale in which the auction starts with the highest price of an item and theprice is then continuously reduced until a bidder answers favorably and buys.

arned IncomeIt refers to income derived from sale of goods or from rendering services. It also includes pensionand annuity income.

arnest .oneyIt is the money given by one of the contracting party to another at the time of making of thecontract in order to bind the contractee. arnest money is forfeited by the doner if he or she failsto carry out the contract.

arnings $er &'areIt is that portion of a corporation9s net income which relates to each share of that corporation9scommon stock the one which is issued and outstanding.

arnings $rice RatioIt is a ratio which is calculated by dividing the earnings per share of outstanding common stock bythe closing stock market price 4or in absence of any sale, the midpoint between the closing bidand asked price7 on a day close to the date of publication of the earnings.

asy .oneyIt means money available at low rates of interest and without much effort as a result of sufficientsupply of a bank9s ecess reserves.

C Abbreviation of e&coupon.

conometric .odelIt is a set of related e$uations that make use of various mathematical and statistical techni$ues inorder to analy*e economic data such as essential $uantitative impact of alternative assumptionsor government policies and also to test various approaches about the way the economy works.

conomicIt describes an action related to development of goods and services which are intended to satisfya human condition.

conomic Costs

It represents the payments made to suppliers of items that are re$uired for manufacturing, inorder to convince them to supply their resources in a specified activity.

conomic $rofitIt is similar to pure profit which means residual profit after paying the implicit and eplicit costs.

conomic RentIt is the estimated rent which a property is epected to earn in the present rental market.;owever, the actual rent received may be more or less than the economic rent.



conomic &anctionIt is a sort of economic pressure that is used to compel another nation or group of nations in orderto comply with the international agreement.

conomicsIt is a branch of social sciences which is concerned with the description of events dealing with

production, distribution, echange and consumption of goods and services.

ffective DebtIt signifies the total debt of a firm that also contains a significant value of annual leases or otherpayments which are e$uivalent to interest costs.

ffective !c'ange RateIt is an echange rate actually paid or received by the public on the spot. It includes any bankingcommission applicable to it in addition to any taes or subsidies on the echange transaction.

FTIt is an abbreviation of lectronic %und9s Transfer.

lasticityIt is the impact of price and other related factors in the market that affect the demand or supply. Italso signifies the competence of a financial institution to satisfy the credit and currency demandsduring times of epansion as well as to restrict the same during times of over epansion.

lectronic Cas' Register It is a type of cash register in which the electromechanical parts are replaced by electroniccircuitry.

lectronic Funds Transfer &ystemsThese are computeri*ed systems that eecute an echange of value between two parties. Theyprocess financial transactions and also process information about financial transactions.

ligible $aper These are certain negotiable instruments, bills, securities, etc that are accepted by financialinstitutions for rediscounting purpose.

mbargoIt 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.

ncodeIt is an act of placing magnetic ink characters of the !3B type font specified by the ABA on theface of a document during the processing of items through an encoding machine. It also meansapplying a code, fre$uently one consisting of binary numbers, to represent individual characters

or group of characters in a message.

ncumbranceThe word, also spelled "incumbrance", means a claim or interest in any property whose transferor sale cannot be stopped inspite of its depreciating value.

nd .oneyIt is special fund created to meet the cost of any project eceeding the original estimated cost.



ndo)mentIt is a gift to an institution made for a specific purpose. The giver of gift is allowed to declarededuction on his taes.

ndo)ment InsuranceIt 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 suchpolicy at the end of the premium period if he survives beyond such period.

ndo)ment TermIt is the period for which the endowment contract eists. In other words it is the period of timefrom the date of issue to the date of maturity of an endowment contract.

uation $riceIt is a price determined through competition in a market at a given point of time such that bothdemand and supply are e$ual at this price.

uilibrium $riceIt is a price in the market at which the profitability of the organi*ation is maimum and which is

determined by intersection of demand and supply curve.

uilibrium 8uantityIt is the $uantity of goods at which the profitability of the firm is maimum and which is determinedby intersection of demand and supply curve.

uity FundingIt is a combination of mutual fund shares and insurance in which the buyer purchases mutualfund shares and pledges the same as security for the loan used to defray the cost of premium onan insurance policy.

uity TransactionIt is a transaction that results in an increase or decrease of net worth or involves the transferbetween accounts making up the net worth.

uity Turnover It is a ratio for measuring the relationship between sales and the e$uity capital for computing therate of return on common e$uity.

scalator ClauseIt is a provision according to which the contract price can be revised for increase in case ofunforeseen contingencies.

sc'eatIt 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 havinglawful 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 party4the grantee7.

scro) AgreementIt is a settlement according to which two parties assent to deposit a sum of money with a thirdparty for conditional delivery under stipulated circumstances.

stateIt means a right, tittle or other interest in property, whether real or personal.

state DutyIt refers to ta payable on property of a deceased owner.

urobondIt is a medium&term bond released for sale in uropean markets. The bond is released by anynon&uropean company or by any 1.).

urocurrencyIt is money of various countries that is deposited in uropean banks and used in the uropean

financial market.

urodollarsIt means uropean demand for 1.). #ollars.

ven LotsIt signifies selling of number of stock shares in units of ! or multiples of !.

ven upIt is a securities term which means that there eists an evenly divided balance of securitiesbuyers and sellers.

!5allIt means a situation where the seller inspite of selling a security, reserves the right to all pendingbenefits.

!c'ange CurrentIt is the current rate of echange.

!c'ange of &pot for FuturesIt is an act of simultaneous echange of a determined $uantity of a cash commodity for the similar$uantity in futures, generally because both parties carry opposite hedges in the same deliverymonth.

!5Coupon

It means without the coupon.

!5Dividend DateIt is a specified day on and after which the right to receive a current dividend is not transferredautomatically from seller to buyer.

!'aust $riceIt is that price at which a broker forcefully sells a security which was margined and afterwardsdropped in price.



!pired AccountIt is that account which has an unpaid balance due although the initially agreed period forpayment has elapsed.

!plicit InterestIt refers to the sum of money or goods paid on a loan.

!ternalitiesThese are outside benefits or costs for which no compensation is granted.

!tortionIt is an act of grabbing something of value from someone else by coercion. %orce.

F

Facsimile &ignatureIt 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 receivepayment on behalf of the principal.

FactorsThese are limited agents who purchase accounts receivables from small firms at a discount.

FailIt signifies a broker9s incapacity to deliver stocks that he is liable to deliver to another brokerwithin the stipulated time period of five business days. Thus one broker9s failure to deliver stocksresults in another broker9s failure to receive stocks.

Fair $riceIt is a price which results in a fair yield on the funds invested. It also means a price that has asuitable 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%eIt signifies a monetary union in order to form a uropean fied system.

FeeIt is a compensation for services rendered. It also stands for an inheritable property in land.

Fiat .oneyIt is the money having no metal security which is circulated by government.

FiduciaryIt represents an association, individual or a corporation which is entrusted with certain property tobe held under a trust as per the trust agreement.



Fiduciary AccountingIt means estate accounting. It also refers to maintaining accounts of property in the hands of atrustee, eecutor or an administrator.

Fiduciary .oney 2or &tandard3The term denotes currency which is not completely secured by any precious metal.

Fiduciary ReturnIt 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 BillIt is a draft drawn by one bank on a foreign bank against securities that are maintained by theoverseas organi*ation.

Finance :nitIt is a nondelivery postal branch concerned with providing financial services and acceptance of

mail.

Finance- $ublicIt is a uni$ue branch of finance that deals with the arrangement of means of payment todischarge public or government ependitures.

Financial !penseIt is the interest cost on long&term debts. To be distinguished from finance charge, which meanscost of a loan.

Financial .ar%etsThese are money and capital markets of the economy.

Financial RatiosThese are ratios that show the relationship eisting between various balance sheet items anditems appearing in income accounts.

Fire)or%sIt signifies a swift increase in the prices of a security or a group of securities.

Firming of t'e .ar%etIt refers to a time period when the prices of securities tend to become steady near a certain levelafter a downward movement.

First Lien

It is the first mortgage.

First .ortgageIt is the mortgage on property which has priority over all other mortgages.

First 6otice DayIt is the first day of a specified month of delivery on which transferable notices can be dispatchedfor delivery.



First $referred &toc%It refers to the stocks carrying dividend that are preferred over the common stock of the companyand are positioned ahead of the second preferred issue.

Fiscal DividendIt is the increase in governmental revenues due to an epansion in gross national product at any

given level of ta rates.

Fi!ed BudgetIt is the budget of a corporation predetermined for a specific period of time which is not subject tomodification during the budgetary period.

Fi!ed $riceIt is the lowest sale price of a new issue usually fied by its underwriter below which the securitycannot be sold or purchase cannot be made.

Flagging an AccountIt is an act of temporarily suspending activities on an account until brought up to date or for anyother appropriate reason.

FlatIt denotes with no interest. It also refers to the price at which a bond is traded and it also includescompensation for all unpaid accruals of interest.

Flier It connotes a speculative purchase of investment by a person usually not involved in speculationor in active trading in the market.

FloatIt indicates that portion of a new issue which has not yet been procured by the public. The termalso depicts the amount of funds that are in the process of collection and represented by che$uespossessed by one bank drawn on other local or out of town banks. It also signifies the value ofche$ues covered by the %ederal eserve but which are not collected by the %ederal eservefrom the bank on which the che$ues were drawn.

Floating CurrencyIt is the currency whose value is determined by market forces. >alue of such currency in terms offoreign currency is not kept stable.

Floating &ecuritiesThese are securities retained in the name of a broker and purchased for speculation and resale. Italso stands for stock that is ready for sale in the open market. It also refers to new issues ofsecurities, which have not been completely purchased.

Floor It is the large trading area in the echange where stocks and bonds are bought and sold.

Floor Bro%er ;e is the member of a stock echange who eecutes orders of buying and selling of listedsecurities on the floor of the echange.



FlotationIt signifies the launching an issue of securities or a procedure of providing funds for a businessactivity.

Force AccountIt refers to a method applied in construction or maintenance of fied assets in which personnel of

the governmental unit itself are used instead of outside contractor.

Forced BillingIt is a method employed to safeguard payments for freight delivery when bill cannot be found.

ForeclosureIt 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 AccountIt is an account maintained in a foreign bank in the currency of the nation in which the bank islocated.

ForfeitureIt is loss by default of property as a penalty for failure to comply with legal provisions and as acompensation for the losses or damages sustained.

For)ard BuyingIt is an act of buying an actual or spot commodity but the delivery is for the future and not currentdelivery.

For)ard !c'angeIt purchase or sale of a foreign bill of echange 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 isdone at a fied price at a given future date.

For)ard $ricesIt is a proposition for reducing price instability and encouraging better stableness in farming byusing the price system as an adjustment device.

For)ardingIt is an act of carrying information from one page to another in an account or journal.

Foul Bill of LadingIt is a bill of lading that identifies shortage or damage which eisted at the time of shipment.

Fourt' .ar%etIt signifies purchase and sale of unlisted securities directly between investors.

Fractional CurrencyIt is any currency which is smaller than a standard money unit.

Fractional Lot A lot that is less than a round lot.



Franc'iseIt is a right or privilege granted to a dealer for the distribution of a manufacturer(s output.

Franc'ise ClauseIt is a provision according to which payment shall not be made until and unless the loss ordamage e$uals or eceeds 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 ConveyanceIt is a conveyance of property entered into by a debtor with the intention of deceiting creditors.

Free and 0pen .ar%etIt is a type of market where demand and supply are freely epressed in terms of price.

Free nterpriseIt is situation where a business can operate or function competitively without much interventionfrom and restrictions of government.

Free .ar%etIt is a type of market where there eists un&restricted movement of items in and out without beeninterrupted by tariffs or other trade barriers.

Free $ortIt is a port where no duties are payable on either imports or eports.

Free RidingIt signifies an act of withholding new stocks by brokers, which are epected to climb higher thanthe initial public offering. It also refers to a transaction, forbidden by law, where securities arepurchased and $uickly sold without providing personal funds for the original purchase.

Free*eIt signifies fiing of prices at present levels usually during wartime or national crisis.

Fro*en AccountIt is an account from which monies cannot be withdrawn unless a court order or legal processmakes the account available for withdrawal.

Fro*en AssetIt 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 applicationof a deduction but subject to the limit of the policy.

Full LotIt is a bunch of ! shares of stock traded on the ew 0ork stock echange.

Full5&ervice Ban%It is a commercial bank which is competent to meet all financial needs of the banking public.



Functional CostingIt is a cost accounting system in which the costs are classified by allocating them to the variousfunctions performed such as warehousing, delivery and so on.

FundIt 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 epanded asinterpreted in the formal contract.

Fund AccountsIt represents all those accounts that are re$uired to present the financial operations and financialposition of a fund.

Fund BalanceIt represents the surplus of the assets of a fund over its liabilities and reserves. ;owever inrespect of funds subject to budgetary accounting, fund balance prior to the end of a financialperiod represents the ecess of the assets of the fund and estimated revenues for the period overits liabilities, reserves, and appropriations for that period.

Fund Balance &'eetIt is a balance sheet for a single fund.

Funded DebtThese 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 DeficitIt is a deficit that is eliminated by way of sale of bonds issued for that purpose.

Future IncomeIt signifies some income which is epected to be reasonably assured for some time to come.

FuturesIt refers to buying or selling of foreign currencies on the basis of a rate $uoted as of some futuredate. It also stands for those contracts in which sale and delivery of commodities at some futuretime are made with the epectation that no commodity will be received immediately.

Futures CallIt refers to a transaction of sale of commodities in which delivery is made on any trading date fora specified month as re$uested by the seller.

Futures !c'angeIt stands for an organi*ation which is created for the purpose of trading of commodity futures.

Futures .ar%etIt is any commodity echange that trades in futures.

(

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



(arbageIt 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 debtorpossessing certain property or money which the creditor wishes to ac$uire to satisfy a debt due to

the creditor by the debtor.

(arnis'mentIt is a declaration from a court instructing an employer to hold back payments due to an employeeby way of wages and to pay such sum of money to the court or the creditor to whom theemployee is liable to pay up till a given debt is discharged.

(at'er in t'e &topsIt refers to selling of a particular security in ade$uate $uantity with the objective to reduce theprice 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 stateare permitted to do business.

(eneral uilibrium AnalysisIt is an economic scrutiny in which interplay of all markets is given due consideration.

(I(0The abbreviation stands for (garbage in, garbage out(. It signifies that unreliable and uselessinformation produce nothing but e$ually unreliable and useless results.

(iroIt is a payment system in which the account holder of a bank directs his bank to transfer fundsdirectly from his account to the creditors account named and also notify the creditor about thetransfer.

(o $ublicIt indicates raising of money for a corporation through offering stock for public sale.

(oing $ublicIt is a situation in which a corporation(s shares become accessible on a major echange.

(old Bullion &tandardIt 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 ofcoins, there is no circulation of gold within the economy, and gold is made available for purposesof industry and for international dealings of banks and treasuries.

(old !c'ange &tandardIt is a universal monetary agreement whereby money include fiat national currencies that can betransformed into gold at determined price ratios.



(old &tandardIt is monetary standard according to which currencies of all nations are fully backed by gold. @oldis used for discharging liabilities on foreign account.

(ood .oneyIf 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 spendthe "bad money" , thus driving the good money out of circulation.

(raftIt refers to a financial or other gain obtained through the abuse of a person(s position or influence.

(rain !c'angesIt is a type of commodity echange 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 etends credit.

(rantor ;e is the person making a grant or eecuting a deed giving up his title to property.

(raveyard .ar%etIt is a type of securities market in which those who are in cannot come out and those are outcannot get in.

(ravyIt stands for money that is easily earned or money which is in ecess of what is epected.

(ray .ar%etIt denotes sources of supply from which scarce items are bought for rapid delivery at a premiumwell 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 tothe manner in which people safeguard themselves from loss by spending money of disputablevalue 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 beforededuction of sinking fund assets.

(ross C'argeIt is the ratio between the interest charge on a discount interest loan and the discounted amountdisbursed to the borrower.

(ross DebtIt 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 creditobligations.

(ross DepositsIt represents all deposits including all forms of time and demand deposits, without any eclusionsor deductions.

(ross 6ational $roductIt is the total retail market value of all items and services produced in a country during a specifiedperiod, generally one year.

(ross &avingsIt is the sum of capital consumption, and personal and corporate savings.

(ross &preadIt is a banking term that is used to determine underwriting fees.

(ross ,ieldIt 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%ingIt is a form of banking enterprise whereby a group of eisting banks form a holding company. Theholding company supervises and coordinates the activities of all banks in the group. The holdingcompany holds a majority of the capital stock of each bank in the group.

(ro)t' in arnings $er &'areIt is the annual percentage growth in primary earnings per share for the restated five&year periodthat ends on #ecember 3! and based on the least&s$uares method.

(uaranteed &toc%

It is the usually the preferred stock on which dividends are guaranteed by another company.

(uerrilla FinancingIt stands for loans that are devised on their own outside customary channels. It is a strategy toprotect an individual seller who lends money privately to the individual buyers who might getsaddled with a risky, illi$uid asset when cash comes in gradually as the buyer pays off the note

4

4AThe abbreviation stands for House Account.

4all .ar%It stands for the impression made on gold and silver vessels introducedin the commencement of the fourteenth century in England to examine the

quality of the metal used.

4alsey $remium $lanIt 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%etIt 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 LoanIt is a type of foreign loan that is payable in hard money.

4ard .oney 2Currency3It 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 &ellIt is an endeavor to sell goods or services in a combative and

unpleasant manner.

4CThe abbreviation stands for holding company.

4edgeIt means to offset. It also connotes a security having offsetting

qualities.

4edge FundIt 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.

4edgingIt 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.

4igglingAlso 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' CreditIt refers to the highest amount of credit extended to a particular

customer at one time.

4ig' FinanceThe 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' FlyersThese are speculative securities that are high#priced and move several

points up or down in a trading day.

4it t'e BidIt indicates selling a stoc! at the highest bid price quoted for such

stoc!.

4olding5t'e .ar%etIt implies purchasing a sufficient quantity of stoc! in order to

minimi$e the decline in the price of a security.

4omogeni*ationIt 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 businessproducing the same goods or services.

4ori*ontal $rice Fi!ingIt is an agreement made among competitors at same levels of

distribution regarding prices.

4ot IssueIt represents a stoc! that is in great demand generally when sold for

the first time.

4ot .oneyIt is money obtained through illegal means or means of suspectable

legality.

4ouse AccountIt 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 BillIt is any bill of exchange that is drawn by the central or head office

of a concern against a branch or affiliate.

4ouse of IssueThe term stands for an investment ban!ing firm which is performing

functions of underwriting and distribution.

4uman Resource AccountingIt refers to reporting and emphasi$ing on the pertinence of s!illed and

loyal employees in an organi$ation"s earning picture.

4us' .oneyIt is a bribe given in order to assure silence of the receiver.

4ybrid Basis AccountingIt is system of accounting which combines cash basis and accrual basis

of accounting.

I

Immediate AnnuityIt represents an annuity which commences one month, one $uarter, half a year, or one year afterthe effective date of payment.

Immediate Beneficiary;e is the beneficiary of a trust entitled to receive immediate benefits from the trust property. Thebenefit may or may not be limited to income.

Immediate DeliveryIt signifies an arrangement according to which an investor selects mortgages for delivery,

acceptance, and payment within a limited period of usually 3 days.

Immigrant RemittancesIt refers to funds of immigrants which are sent out of the country.

Impaired CapitalIt is a situation when the capital of the firm is less than the stated capital.

Impaired CreditIt refers to a situation when the credit given to a concern is reduced as a result of bank(s decisionthat its credit worthiness has weakened.

Imperfect CompetitionIt refers to a situation under which prices can be changed by one or more persons because ofabnormal market conditions or undue advantages secured by some buyers or sellers.

Implicit $rice Deflator for (ross 6ational $roductIt is a measure of the average change in market prices of goods and services represented in thenational income and product accounts, in comparison to average levels in a base period.

ImpostIt is a ta, usually an import duty.



ImputedIt is an estimated value when no cash payment is made, in order to ascertain that value.

Imputed CostIt is a cost which is not specified but is deemed to eist by the policies of the organi*ation.

In &ig'tIt is a commodities term which describes the $uantity of goods re$uired to be delivered at aspecific location.

Income ClearingsIt refers to che$ues and drafts received from other banks but in the same city.

Income DebentureIt is a bond issued by companies on which interest is payable only when earned by the company.

Income DeductionsThese are deductions made from income such as interest on long&term debt, amorti*ation of debtdiscount, epense and premium&net, taes assumed on interest, interest on debt to associated

companies, other interest charges, interest charged to construction, miscellaneous amorti*ationand income deductions.

Income DistributionsIt is the manner in which personal income is apportioned all over the various socio economiclevels in the country.

Income DividendsIt refers to dividends paid to mutual fund shareholders, and short&term capital gains earned on thefund(s portfolio securities after deducting operating epenses.

Income $roperty

It is the property purchased or owned for a financial return epected. /roperty may becommercial, industrial or residential.

Income ReturnIt refers to monies earned from an investment over a the period of one year.

Income "elocity of .oneyIt signifies the average number of times each year that a rupee is spent on purchasing thecountry(s annual flow of final goods and services.

IndemnityIt refers to an option to buy or sell a particular $uantity of a stock at a certain price within a givenperiod 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 theirobligations.

IndentIt is a re$uest made by a buyer to an importer to import specific items at a certain price. Theimporter is allotted a time period within which he can accept or reject the offer.



IndentureIt is an agreement in writing under which the debentures are issued. It comprehends the maturitydate, 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 echange eecuting orders for other brokers whohave more business than they can handle at a given point of time or for firms not having theirechange member on the floor.

Indicated ,ieldThe term portrays the current return or yield to maturity of stocks and bonds.

IneuitiesIt refers to an ine$uality in the rates or conditions paid or provided for similar work in an industryin comparison to those eisting in the industry.

InflationIt refers to an increase in the price level resulting in a decrease in the purchasing capacity of themonetary unit.

Inflation AccountingIt is a practice of bookkeeping which also shows the impact of inflation on the assets and profitsof the organi*ation.

Inflationary (apIt is the amount by which government and private spending eceeds the amount re$uired toprovide a staunch price level and full employment.

I$0 5 Initial $ublic 0fferingThe first public sale of common stock, usually by a privately owned company that wants to gopublic. After the I/', the publicly held shares may be traded on a stock echange

Installment Cas' CreditIt refers to the money loans granted to a person which is repayable in installments over aspecified length of time.

Installment CreditIt is a sort of consumer credit which involves regular payments by the buyer as per the paymentschedule fied. It gives seller the right to reac$uire the sold item in case of buyer(s default inpayment of installment.

Installment FinancingIt is sort of financing activity in which the repayment of an obligation is by payment of fiedamount at regular intervals.

Installment &ales CreditIt is a one&shot loan usually granted to purchase costly items such as cars or other consumerdurable 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$ualinstallments at regular interval of time specified in the contract.

Institutional Investor It refers to a company which has invested substantial funds in securities.

Insurance CoverageIt 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 ecludescertain eempted items.

Integrated CompanyIt represents an organi*ation which has combined its diverse units or items in order to widen itsmarket territory to ac$uire efficiency, and also to improve costs.

Interest 0nly AccountIt connotes an account that has in the last two calendar months made one or more payments ofwhich nothing was applied to principal.

Interest &'ortThe term represents the amount by which a payment is insufficient to pay off the accrued intereston an account.

Interest TableIt is a mechanical indeing device or chart which gives independent calculation of simple orcompound interest, the discount or present value, and the like, on various amounts for certain or

various time periods.

Internal DebtIt is the debt of a nation.

Internal conomies of &caleThese are factors arising from physical economies or diseconomies and leads to increase ordecrease in an organi*ation(s long&run average costs or scale of operations resulting from si*eadjustments with the company as a product unit.

Internal ItemsIt is the debit or credit note devised by or for an officer of the bank in order to adjust balance inthe general ledger and for a customer9s account.

Intervention CurrencyIt refers to the foreign currency that a country uses to ensure by means of official echangetransactions that the permitted echange rate margins are observed. Intervention is usuallythrough purchases and sales of foreign currency by the central bank or echange e$uali*ationfund in domestic dealings with commercial banks.

IntestateIt means not having a valid will.



Intestate &uccessionIt refers to descent and distribution of property of a person who dies intestate that is withoutmaking a valid will.

IntrusionIt means forcefully taking possession of another9s real property.

Inventory FinancingIt is an effort to arrange the necessary capital for a firm by borrowing funds with inventory used assecurity.

Inverse Demand $atternIt is a situation which eists when price and volume vary at the same time and more is sold at ahigh price than a lower one.

Inverted .ar%etIt 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. Inother words the investment banker acts as an underwriter of the issue.

Investment Ban%ingIt means financing of the capital re$uirements of an enterprise rather than the current workingcapital demand of business.

Investment ClubIt 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 epectedseparately.

Investment CreditIt is the credit facility etended to an organi*ation for the purchase of fied assets.

Investment $ortfolioIt is the list of securities owned by a bank, an individual, or a business enterprise.

Investors FundsIt refers to retail or repurchase agreements which are not funds at all.

Invisible 4andThe epression depicts the capability of the perfectly competitive market to bring about thegreatest benefit for all, even when all merchants selfishly maimi*e their own profits.

Invisible Trade BalanceIt represents the trade balance created by import and eport of services unlike that created fromimport and eport of goods.

I0:The acronym stands for "I owe you". It is an informal agreement in writing, acknowledging a cashdebt.



I$The abbreviation stands for issue price.

Iron La) of +agesIt is a concept that wages tend to e$ual what the employees needs to maintain a subsistencelevel of living.

Irregular &avings AccountIt 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 chargesfor material and labor and other epenses incurred and credited with the income or contract pricealong with any other allowances or credits.

Job AnalysisIt is methodical scrutiny of the specific tasks re$uired for a particular job, set of conditions, rate ofpay, and so on. In other words, it refers to a systematic analysis of the personal $ualities re$uiredto perform a particular job.

Joint ContractIt is a deal entered into by two or more persons with the third party to perform jointly upon acontract and such persons are under joint obligation to the other party identified.

Joint +illIt refers to a single will of two or more individuals.

Joint5&toc% Ban%s

It is the name given in ngland for all commercial banks but does not apply to Bank of ngland,private banks and so on.

9

9ameralism Also spelled as "cameralism", the term refers to a concept of mercantalism which is concernedwith the production of wealth by the state and how the wealth is used.

9eynesian conomicsIt is system which shows that national income and employment are dependent upon realinvestments and consumer spending.

9iting &toc%sIt is an act of manipulating stock prices to unprecedented high levels.

9noc%ed5Do)n $riceIt denotes a lowered or reduced price that has been arrived at by lowering the seller(s askingprice for the purpose of making the sale.

L



Labor conomicsIt is a speciality in the field of economics that is primarily concerned with the link between theworker and his or her job. It covers areas such as supply of labor, hours and wages, conditions ofwork, and other forces relating to the general economic welfare of the worker.

Labor T'eory of "alue

The philosophy that describes the eploitation of workers in a capitalist system.

Laisse*5FaireThe term describes a leadership style of minimal involvement. It also refers to a policy of theclassic capitalistic model, recommending that government should not interfere with the economy.

LambThe term denotes an ineperienced speculator.

Lame Duc%The jargon stands for a speculator whose venture has failed. It also means a member of a stockechange unable to discharge his debts. It also signifies an individual who goes out of office veryoften 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 ecluding structures or agricultural produce on it.

LapseIt refers to a failure on the part of the insured to make payment of premium on due date or withinthe days of grace allowed. It also refers to the cessation of a right by the passage of time, as andwhen the grace period of a mortgage ends or the date of a lease has passed.

Last Trading DayIt is the last day during which trading in a futures contract is allowed during the delivery month.

La) of Increasing CostsIt is a concept which states that the average total unit cost in a production process increases withincrease in the volume of a firm.

La)s of DescentIt is the law which governs the descent of real property from ancestor to heir.

Lease 2Regular or Commercial3It is an agreement to obtain and use space for a definite period of tenure at a fied monthly rent.

Legacy 2Beuest3It 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 giftof money in a certain sum 4iii7 demonstrative legacy which is payable in cash out of a particulardesignated fund and, 4iv7 residual legacy is one which includes all the remaining personalproperty after the payment of all obligations, charges against the estate, and all other legacies.

Legal AssetIt is any property which can be used for discharging a debt.



Legal InvestmentsThese are investments permitted by state laws to be made by savings banks, insurancecompanies, trustees, and other fiduciaries. /ermission has to be seeked from the state in whichthey 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 forfunctioning 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 acreditor, who has to accept the same in discharge of the debt unless an agreement to thecontrary is made which specifies payment of another type of money for discharging the debt.

Lender of Last ResortIt is the name given to the central bank as it will lend to individual banks in case they eperiencelarge withdrawals.

Lending &ecurities

These are securities which can be borrowed by a broker representing a short seller.

Letter of AttorneyIt is a document showing a power of attorney.

LeverageIt signifies the effect on the per share earnings of the common stock of a corporation when largesum of monies are to be paid as bond interest and+or preferred stock dividends before thecommon stock is entitled to share in earnings.

Leverage ContractIt is the privilege to purchase or sell a commodity at an agreed price on a specified future datewithout rigid variation in margin re$uirements of recogni*ed commodity echanges.

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 byfunded debt or bank loans.

LevyIt connotes a ta assessment. It also means a demand made on the members of a company for acontribution of added working capital or to make good on a loss.

Lien $lacement FeeIt is the cost of recording with the secretary of state the security interest of a bank on the title ofany new or used car.

Lien T'eoryIt is a philosophy of real estate law which states that a mortgage grants a claim to, or lien on, themortgaged property to the mortgagee.



Life AnnuityIt 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 hislifetime. If the estate consists of real property then the beneficiary is called as life tenant.

Life ContingencyIt is the probability of living or dying.

Life Cycle 4ypot'esisIt is a theory of the saving decision which states that consumers save in order to maintain astable level of consumption in the future.

Life stateIt refers to an estate in real or personal property which terminates on the death of the owner. Thefuture 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 onlyfor a stipulated, limited number of years.

Limited $o)er of AppointmentIt 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 eercise the power or for whomhe can eercise the power and so on. #onee in the present case is the person who has thepower.

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 priceas per the guidance given in the order.

Line of CreditIt is an agreement between a bank and a customer whereby the bank agrees to lend funds to thecustomer up to a certain maimum amount.

Line of DiscountIt is the maimum credit etended by a bank to a retailer on the basis of his accounts payable,which the merchant discounts with the bank.

Line 0rgani*ationIt is a form of company structure in which top officials have total and direct authority andsubordinates report to only one supervisor. It is the oldest and least comple company structure.

Lin%ageIt indicates the pressures an industry can eercise on the rest of the economy.

LiuidIt signifies capacity of being readily converted into cash.

Liuid RatioIt is the ratio of readily available current asset to current liabilities.



Liuid &avingThese are savings of individuals in form of cash or items that are easily and $uickly convertibleinto cash.

Liuid &ecuritiesThese are securities such as stocks, bonds etc that are easily marketable and converted to cash.

Liuid TrapIt is a concept which states that at some low interest rates, the speculative desire for cashbecomes infinitely elastic.

Liuidated DamagesIt is payment by all parties of an agreed amount as damages in view of breach of contract.

Liuidating DividendIt is the declared dividend in the closing of a firm to dispose off the assets of the organi*ation to$ualified stockholders.

Liuidating .ar%et

It is a type of securities market where combative selling takes place at comparatively low prices.

Liuidating "alueIt is the epected value of a particular asset which will be received in case of li$uidation of abusiness.

LiuidityIt signifies the capability of the market in a particular security to absorb a reasonable amount ofbuying and selling at reasonable price changes. It also means the speed with which the assets ofa business can be converted into cash without loss i.e. solvency of the business.

Liuidity $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 echangeand whose issues have fulfilled in every way with the listing stipulations of the echange.

Lister The term stands for a broker who sells property from a listing.

ListingIt refers to discretion of a seller to offer a property with one or more real estate brokers in whichcommission will be paid to the broker successfully selling the property.

LoadIt is that part of the offering price of shares of open&end investment companies which cover salescommissions and all other epenses of distribution.

LoadingIt is the ecess of the gross premiums over net premiums. It also refers to amount added to aninstallment agreement to cover selling and administrative overhead, interest, risk and so on ormonies added to the prorated market price of underlying securities, representing fees andoverhead.



Loan &toc%These are securities advanced as loans to a broker or short seller to comply with the terms of ashort&selling contract by delivering shares.

Loan "alue RatioIt 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 fundscovered by the face amount of the note, discount or loan charges, fees, insurance premiums,rebates, and che$ues issued.

Loanable Funds T'eory of InterestIt is a conception that interest rate is determined by the demand for, and supply of, loanable fundsonly and not all money.

Lombard LoanIt is a type of loan forwarded by the central bank which is secured by collateral such as stock and

bonds.

LongThe term signifies ownership of stocks. It also means retaining a substantial amount of a securityor commodity in epectation of a scarcity and price rise.

Long 4edgeIt means purchasing futures that are made as a hedge against the sale of a cash commodity.

Long InterestIt refers to a consolidated retention of a particular stock, or a group of stock.

Long .ar%etIt an overbought market.

Long of !c'angeIt refers to a situation where the amount of foreign bills held by a trader in foreign currencyeceeds the amount of bills of his own that have been sold and remain outstanding, the traderthen said to be long of echange.

Long &aleIt means hedging sales or sales created due to spot commitments in a commodities market.

Long &ideIt denotes a long interest.

Long &toc%The jargon points at those securities which are purchased in anticipation of increasing prices.

Loren* CurveIt represents a graphic device for plotting the degree of ine$uality in the distribution of income.



Loss RatioIt is a proportion arrived at by dividing the amount of the losses by the amount of the insuredpremium.

Lost 0pportunityIt is a description for investments that are not earning the current available rate of interest.

LTDThe 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 AccountingIt is a record&keeping system which uses electromechanical machines and not electronicmachines for the purpose of posting of account records and ledgers.

.ac'ine $ayIt is a scheme of checking account posting whereby all media, both che$ues and deposits, areposted to a journal only on the first "run" of the media. The old balances of all affected accountsare picked up, the media posted, and new balances etended as in any posting run. The affectedaccounts may or may not be offset, depending upon the preference of using bank.

.anagement AccountingIt is a resource of management which supplies financial knowledge at all levels to be utili*ed inthe planning and managing of the business.

.anagement AuditIt is a system of eamining, analy*ing and appraising a management9s overall performance.

.anagement Company A company which deals in managing and selling shares of open&end investment companies inreturn for a fee or commission is a management company.

.anagement FeeIt is the charge made to an investment company for supervision of its portfolio and other servicesrendered.

.anagement (ameIt is a dynamic training approach which utili*es a model of the business world as a trainingdevice.

.anagement Information &ystemIt is a special data&processing system which is aimed to provide management and supervisorypersonnel with current information in real time. In the communication process, data are recordedand processed for operational purposes.

.anagement &cienceIt refers to the formulation of mathematical and statistical models applied to decision making andthe practical application of these models through the use of digital computers.



.anaging Agency AccountsIt refers to an agency account regarding which the agent has managerial duties andresponsibilities suitable to the kind of property and in conformity with the terms of agency.

.arginThe 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 collateralpledged to secure a loan and the face value of the loan itself. The term also indicates the amountpaid by the customer for using a broker9s credit to buy a security.

.argin AccountIt is any brokerage account where listed stocks can be purchased with the assistance of creditgiven by the buyer9s broker.

.argin BuyingIt means utili*ing credit given by a broker for purchasing securities.

.arginal AnalysisIt is an analysis of economic information by eamining 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 ConsumeIt is reflected by the percentage of increase in income that is spent for consumption purposes.

.arginal $ropensity to InvestIt is reflected by the percentage of increase in sales that is spent on investment items.

.arginal $ropensity to &aveIt is reflected by the percentage of increase in income saved by individuals.

.arginal RevenueIt 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 TradingIt suggest buying of security or commodity by a person from the funds borrowed for part of thepurchase price rather than the entire price. )uch a person does not pay for the entire transactionfrom his own funds but borrows money for part of the purchase price.



.argined &ecuritiesIt 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 AuditIt 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 inorder to increase profits.

.ar%et AveragesIt is a major securities barometer indicating the trend and conditions of the market.

.ar%et uilibriumIt points a situation in the market when a balance occurs due to buyers and sellers decision tostop trading at prevailing prices.

.ar%et FinancingIt is that part of the general business function of providing and managing funds and credit that isdirectly connected to the transactions involved in the flow of goods and services from producer to

consumer or industrial user.

.ar%et LiuidityIt is a condition eisting in a securities market which reflects the supply and demand forces. Thishelps the investor to purchase or sell stocks at prices relatively close to the previous sale.

.ar%et 0ff The term stands for an epression which indicates that prices were down for the day on variousstock echanges.

.ar%et 0rder It is an order to purchase or sell securities at the price currently prevailing in the market when theorder reaches the market.

.ar%et $otentialIt signifies the anticipated sales of goods or services for the entire industry in a market for acertain period of time.

.ar%et Researc'It a part of marketing research which deals with the pattern of a market, measuring the etent andnature of the market, and identifying its characteristics.

.ar%et &'areIt indicates an organi*ation9s share in the industry9s total sales.

.ar%etingIt ascribes all those activities which accelerate the movement of goods or services from themanufacturer to the consumer. In other words it means those activities connected withadvertising, distribution, merchandising, product planning, promotion, publicity, research anddevelopment, 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 CardIt is a card having fied or indicative information for a group of punched cards and is ordinarily thefirst card of the group.

.ature conomyIt is a condition of a country9s economy where there eists decline in the population growth rate

and decrease in the proportion of national income utili*ed for investment in new capital projectsand also there is an increase in the proportion of national income being utili*ed in purchasingconsumer goods.

.ember CorporationIt is a brokerage firm dealing in securities and established as a corporation of which has at leastone person being a director and a holder of voting stock in the corporation is a member of a stockechange.

.ember FirmIt is a securities brokerage firm established as a partnership concern which has at least onegeneral partner who is a member of a stock echange.

.ercantilismIt is an economic policy under which nations measure their power as per the amount of preciousmetal ac$uired by them.

.erc'ant Ban%The term stands for an organi*ation involved in the business of underwriting securities forcorporations, advising them on mergers and ownership of commercial ventures.

.il%ingIt is an attempt by management to s$uee*e the last remaining profits from the firm without leavingsufficient reserves for contingencies.

.intIt is a place where metallic money is coined or manufactured.

.int RatioIt is a ratio of the weight of one metal to another, and their e$uivalent in terms of the national unitof currency.

.inus AssetIt indicates that amount which must be subtracted from the original value of an asset in order toarrive 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 financialinstitutions for customers below which the financial institution will avoid lending money.

.onetary BaseIt is an aggregate of funds retained by banks and public along with member&bank deposits in theeserve Bank.



.onetary LiabilityIt is a promise to pay a sum of money which is unaffected by inflation or deflation to discharge aclaim.

.onetary .ultiplier It is a number that shows the epected 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 creditinstruments and notes constitute money market.

.oney .ar%et &ecuritiesIt refers to high&$uality and generally accepted senior securities whose market prices epressedon a yield basis relate more closely to the prevailing rate of interest for money than to the risks ina company9s operations or in general business conditions.

.oney RatesIt denotes the rates of interest charged by lenders to their borrowers.

.oney &upplyIt indicates the total sum of currency circulating in a country.

.onopsonyIt is a market situation in which there is only one buyer for the entire item.

.oonlig'tIt indicates working at a second job in order to supplement the income from a permanent position.

.ortgageIt refers to property pledged as security for repayment of a debt. It also means a writtenconveyance of title to property, but not possession, to secure repayment of a debt or someobligation. The conveyance becomes void on final payment or performance of the contract, as thecase may be.

.ortgage Ban%er It is a mortgage financing company or a banker who speciali*es in mortgage financing.

.ortgage ClauseIt 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 largemortgagees. They serve as mortgage agents by performing functions such as collectingpayments, maintaining complete records, and making remittances to the mortgagees for a fiedfee or service charge.

.ortgage CreditIt is a form of long&term debt in which money is borrowed for ac$uiring land or building and whichis paid back over an etended period of time.



.ortgage DebtIt is a liability created by a mortgage through a note or bond and secured by the propertymortgaged.

.ortgage LoanIt 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 $remiumIt is an etra bank fee charged for the giving of a mortgage when the legal rate of interest is lessthan 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 epected interest on loan granted on the securityof a mortgage.

.ortgagee;e is the person being creditor or lender to whom mortgage is made. The mortgagor retainspossession and use of the property during the term of the mortgage.

.ortgagee ClauseIt is a provision in an insurance contract which states that the proceeds are payable to a selectedmortgagee as per his interest appearing. It also states the terms of contract between the insurerand the mortgagee.

.ortgaging Future IncomeIt 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 mortgageto a lender, on property owned by the mortgagor.

.ost Favored 6ation ClauseIt is a provision in the international business agreements which prevents tariff discriminationbetween two or more countries. According to this provision each partaker shall etend to othersignatories all tariff reductions which are offered to nonmember countries.

.ulticompanyIt is a conglomeration of diverse organi*ations or a variety of firms under a single management.

.ultiplier $rincipleIt is reciprocal of the marginal propensity to save. The multiplier is a figure that identifies thechanges in investment and spending to alterations in aggregate incomes.

.utual companyIt is a corporation with no capital stock. The profits are distributed among the owner&customers inproportion to the business activity carried with the corporation.

6

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



6arro) .ar%etIt is a market condition in which demand for a security is so restricted that minor change in supplyor demand will create major fluctuations in the market price.

6ational DebtIt is a debt owed by the central government.

6ational IncomeIt is the sum total of incomes received by all people of a country over a period of time. It iscalculated as gross national product minus depreciation minus sales taes and other small items.

6ational +ealt'It is the combined monetary value of all material economic products owned by all the people ofthe country.

6atural CapitalIt 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 ofproperties, which do not call for a third party.

6atural .onopolyIt refers to a monopoly caused due to natural conditions. It also signifies a condition where costper unit is lowest when there is only one company in an industry among other industrieseperiencing economies of scale.

6ear .oneyThese 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$uecashing, 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 conomicsIt 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 ofeconomic epansion is termed as neo&keynesian.

6est ggIt denotes money saved as an erstwhile arrangement for retirement.

6et Bonded Debtet 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 epenses ecept noncash items such as depreciation.



6et +ort'It is the owner9s e$uity in a given business, represented by the ecess of the total assets over thetotal amounts owing to the outside creditors at a given moment of time. It also refers to the "networth" of an individual, which is determined by deducting the amount of all personal liabilities ofsuch individual from the total value of personal assets.

6et ,ieldIt denotes the return from an investment after subtracting costs and losses incurred in operatingthe investment.

6e) conomicsIt is an economic thought stating that an economy may be in e$uilibrium at any level ofemployment. It also states that appropriate government fiscal and monetary policies arenecessary to maintain full employment and keep economic growth with minimal inflation.

6e) Issue .ar%etIt indicates a market for new issues of securities. It is different from secondary market, whichdeals on securities already issued.

6o $rotestIt refers to an instruction given by one bank to another collecting bank not to object to items in theevent of nonpayment.

6o RecordIt is the report furnished by a credit bureau to a credit grantor when no record eists in the bureaufiles regarding a particular customer.

6ominal AssetIt is an asset whose value is inconsiderable, to be $uestioned, or difficult to evaluate. <laims or

judgements in reorgani*ation are certain eamples of such assets.

6ominal Interest RateIt is the contractual interest rate epressly shown on the face and in the body of a bond. Itrepresents the amount of interest to be paid, in contrast with the effective interest rate.

6ominal $artner ;e is an individual who lends his name to a business organi*ation but is actually not a truepartner as he may not have contributed ade$uate funds or he does not take a full share of theprofit.

6ominal $riceIt is an amount of money so small in relation to the item purchased that it hardly justifies the useof the word "price". It also denotes an estimated price for an item, which is not traded fre$uentlyenough to warrant the setting of a definite market price.

6ominal ,ieldIt 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 andplaced with the proper officer for sale and delivery, or pledged or placed in some special fund ofthe issuing corporation it is said to be nominally issued.



6on5$ar ItemIt indicates a che$ue which cannot be collected at the par or face value when presented byanother bank.

6onprice CompetitionIt is a situation eisting 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% &avingsIt is similar to a regular passbook savings account, ecept for the fact that no passbook is used.In such an account the teller receipts deposits and withdrawal slips, with a copy returned to thedepositor for personal records.

6otary $ublic;e is a person appointed by a state for a specified period of time, which can be renewed, toadminister certain oaths and to attest and certify documents. ;e is thus authori*ed to take

affidavits and depositions.

6ote $ayableIt is a formal written promise to pay a specified sum at a fied future date for discharging aliability.

6ote ReceivableIt denotes a promissory note collected by a business from a customer.

6otice AccountIt is a form of a passbook savings account which re$uires the customer to furnish a specifiednotice to the association before making a withdrawal.

6otice DayIt is the day on which notices of intention to deliver may be issued.

6otice of +it'dra)alIt is a notice that may be demanded by a mutual savings bank or other recipient of savingsdeposits before a withdrawal of funds is allowed.

6otice to CreditorsIt is a written notice by posting in public places or by notice in newspapers to creditors of anestate to present their claims for what the eecutor or administrator owes them.

6ursery Finance

It refers to loans granted by financial institutions to profitable organi*ations which plan to gopublic shortly.

0

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



0bligee;e is the creditor or promisee.

0bligor ;e is the debtor or promisor or principal.

0bserveIt denotes the front or face of a note, as opposed to the reverse or back.

0bsolete &ecuritiesThese are abandoned or defunct corporation securities. The term also stands for a bond that hasmatured or been withdrawn.

0ccupation CurrencyIt refers to the military currency introduced to a country by occupying forces.

0ccupational AnalysisIt is descriptive approach to ascertain tasks having common activities and allow to group themunder a common occupation.

0ccupational InformationIt is the information resulting from scrutiny of $uestionnaires and other materials.

0dd LotIt means an amount of stock which is less than the established !&share unit or !&share unit oftradingC 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 echange which buys and sells odd lots of stock&! to 2 share in thecase of stocks traded in !&share units and ! to 22 shares for !&share units. The odd&lotdealers have customers as commission brokers who act on behalf of their customers.

0dd5Lot 0rdersIt signifies any purchase or sale of stock not in !&share units.

0ffered Do)nIt refers those securities that are offered for sale at levels lower than the last sale or $uoted priceof the same stock.

0ffering $riceIt is a price similar to asked or asking price and it denotes the price per share at which investmentshares are offered to the public. The offering price usually consists of the net asset value pershare plus a sales charge.

0ffsets to Long5Term DebtThese are cash and investment assets of sinking funds, bond reserve, and other reserve fundswhich are held specifically for the purpose of redemption of credit funds that are pledged toredeem debt incurred to finance loan activities of such funds.

0% $ac%agesIt is a list or package of che$ues which are processed in a branch office, proved for accuracy,checked for date and endorsement, and considered 'D by the branch office.



0ne5Cancels5t'e50t'er 0rder It is a contingency order in which one part is automatically canceled as soon as the other part isfilled.

0ne5&top Ban%ingIt is a service provided by a bank whose clients can do all banking business at that bank.

0n5t'e5Job TrainingIt is a techni$ue of training the employees by using the actual work site as a proper setting toinstruct workers while at the same time engaging in productive work.

0pen AccountIt stands for a credit etended which is not secured by any note, mortgage, or other formal writtenevidence of indebtedness.

0pen CreditIt refers to the credit etended 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 sametreatment as domestic citi*ens and products.

0pen conomyIt stands for an economy which is free of trade restrictions.

0pen InterestThe term states the number of outstanding contracts in the echange market, or in a particularclass or series.

0pen .ar%etIt is general term which describes a condition of trading that is not limited to any area or persons.

0pen .ortgageIt 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 eecuted. 'rders may be placed atmarket price or at a fied price.

0pen $rospectusIt is a brochure which aims to obtain financial backing and does not clearly identify the use to bemade of the investment.

0pen to Buy

It indicates the currently unused portion of a total dollar credit line agreed upon.

0pen TradeIt denotes any transaction that has not yet been closed.

0pen5nd ClauseIt is an optional clause in mortgage agreements and used in states that recogni*e its validity. Theclause states that the pledge of real estate will cover additional advances of funds which theborrower may re$uest and the lender agrees to grant at unknown times in the future.



0pen5nd CreditIt suggests a line of credit which can be used repeatedly up to a certain limit. It is similar tocharge account or revolving credit.

0pen5nd FundsThese are the mutual funds where new shares of the fund are sold whenever there is a re$uest,

with the epectation that the seller will eventually re$uest to buy the shares, at no additionalcharge.

0pen5nd Investment CompanyIt is an investment concern which sells and reclaims its capital stock continually, selling it at aslight discount or at book value.

0pen5nd Investment TrustIt is a form of an investment trust in which the trustee, by the terms of the trust, is approved toinvest in shares of stock other than those in the trust at the time of the inception of the trust or ofthe participation in the trust.

0pen5nd Lease

It is a form of lease agreement which involves an additional payment based on the value ofproperty when returned.

0pen5nd .ortgageIt is a sort of mortgage agreement which allows the borrower to reborrow money paid on theprincipal up to the original amount.

0pening $riceIt connotes the first price given in an auction or sales marketplace. It also signifies the initial priceat which a transaction in a security takes place on every day. It also means the first $uoted priceof a new stock issue.

0pening $urc'aseIt denotes a transaction in which an investor becomes the holder of a security or an option.

0pening &aleIt indicates a transaction in which an investor becomes the writer of an option.

0pen5.ar%et CreditIt is a short&term financing policy that enables commercial paper houses to purchase notes andresell them in the open market.

0pen5.ar%et 0perationsThese are operations carried out by the %ederal eserve )ystem, which deals with buying and+orselling government bonds in the same market in which other institutional investors operate.

0pen5.ar%et RatesThese are money rates set for classes of paper in the open market, as distinguished from banksrates offered to customers, and rates for advances and rediscounts set by eserve Banks for allmember banks.

0perating BudgetIt is a budget that applies to all outlays other than capital outlays.



0perating CompanyIt is a company whose officers direct the business of transportation and whose books containoperating as well as financial accounts.

0perating LossesThese are losses incurred in the normal operation of a business.

0perating $rofit RatioIt is the ratio of a firm9s operating profit to its net sales.

0perating ReservesThese are a group of balance sheet accounts reflecting the net accumulated balances providedfor property insurance, injuries and damages, pensions and benefits, and amorti*ation.

0perating ReturnIt is the operating income before income taes and depreciation and amorti*ation epense.

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 theproblems.

0pportunity CostIt refers to the maimum alternative profit that could have been obtained if the productive good,service, or capacity had been applied to some other use.

0pportunity Cost of CapitalIt is the epected rate of return from effectively employing funds in the company.

0ptionIt 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 toselect the form of payment of the proceeds of an insurance contract. It also stands for anagreement, often for a consideration, to buy or sell a security or commodity within a stipulatedtime in accordance with the agreement.

0ption AccountIt is a charge account in which the consumer may choose either to pay at the end of 3 days or tospread payments over a longer period of time. If he choose to spread his payments beyond 3days, he pays a service charge.

0ption DayIt is the specified date on which an option epires unless eercised.

0ption Income FundThese are income funds with the investment objective to seek a high current return by investingprimarily in dividend&paying common stocks on which call options are traded on nationalsecurities echanges.

0ptional DividendIt is an alternative available to the stockholder of receiving either a stock dividend or a cashdividend.



0verall .ar%et $rice CoverageIt represents the ratio of net assets to the sum of all prior obligations at li$uidating value plus theissue in $uestion taken at market price.

0verinvestment T'eoryIt 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 anupswing, and of major cutbacks in investment during a downswing when they reali*e that theyepanded too much in the previous prosperity.

0verrideIt refers to a commission paid to managers which is added to their salary.

0versoldIt refers to the situation of a manufacturer who is obliged to deliver more than he is able to supplywithin a certain period of time. It is the reverse of overbought. It also signifies a single security ora 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 reducedand the speculative short interest increases.

0vertradingThe activity of a firm that even with high profitability cannot pay its own way for lack of workingcapital and finds itself in a li$uidity crisis.

0)ner FinancingIt is home&financing approach where the potential buyer bypasses the financial institution andborrows money directly from the person selling the house.

$

$aid5in5CapitalIt refers to capital contributed by stockholders and assigned to accounts other than capital stock.

$aid5up InsuranceIt is a sort of insurance policy on which no further premium payments need to be made. Thecompany will be held liable for any benefits claimed under terms of the contract.

$aid5up &toc%It is the capital stock on which the initial buyer has paid in services, goods, or funds an amount atleast e$ual to the par value.

$aper Basis

It indicates that a nation does not apply a metallic basis for its currency.

$aper (ain or LossThe term epresses unreali*ed capital gains or losses on securities in a portfolio based oncomparison of current market $uotations and the original costs.

$aper $rofitIt indicates a profit unreali*ed on a security still held. /aper profits become reali*ed profits onlywhen the security is sold.



$aper &tandardIt is a monetary system that is based on paper money and which is not convertible into gold orany other item of intrinsic value.

$ar !c'ange RateIt signifies the free market price of one nation9s money in terms of the currency of another.

$ar of !c'angeIt refers to the market price of money in one national currency which is echanged at the officialrate for a specific amount in another national currency, or another commodity of value 4gold,silver, etc.7.

$ar "alue 2of Currency3It 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 amongconsumers throughout the world, regardless of differing forms of taation.

$arityIt means the state or $uality of being e$ual or e$uivalent e$uivalence of a commodity priceepressed in one currency to its price epressed in another. It also means e$uality of purchasepower established by law between different kinds of money at a given ratio.

$arity ClauseIt is a mortgage clause by virtue of which all notes obtained by the mortgage have "e$ual dignity",that is none has priority.

$artial .onopolyIt is a market condition where there are so few sellers of an item or service that each may alterthe price and market.

$artial ReleaseIt signifies surrender of a claim to a part of the property held as security for the payment of a debt.

$articipationIt connotes an ownership interest in a mortgage.

$articipation LoanIt is a type of loan that has two or more banks as creditors.

$artisan IssuesThese are paper money for limited circulation issued by partisans fighting the forces occupying

their country.

$assboo% AccountIt is a type of savings account which ordinarily does not have any restrictions as to minimumbalance, specified deposits, or notice or penalty for withdrawal.

$assed DividendIt signifies a regular or scheduled dividend which has been omitted.



$egIt is an act of fiing or stabili*ing the price of something through manipulation or regulation of themarket.

$ending ClaimIt 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 CapitalismThe concept states that the full range of income levels in the population of a community isrepresented in the ownership of the business.

$erfect CompetitionThe term describes an industry or market unit consisting of a large number of buyers and sellerswho are involved in buying and selling of a similar commodity with awareness of prices andvolume. There is no discrimination in buying and selling and there eists a mobility of resources insuch market.

$erformance Budgeting

It indicates grouping of budget accounts into categories that are related to a particular product orservice produced and the revolution of product&cost measurements of these activities.

$erformance ReportIt is a comparison of actual results against those epected in a stated budget.

$ermanent FinancingIt refers to a long&term mortgage which is usually amorti*ed over !6 or more years at a fied rateof interest.

$erpetuity)omething which is removed from the ordinary channel of commerce by restraining its capacity tobe sold for a period longer than that of a life or lives in being and E! years, thereafter, plus theperiod of development, is said to be removed in perpetuity.

$ersonal Distribution of IncomeIt is an act of distributing natural income among individuals or households.

$ersonal IncomeIt is the amount available after deducting from the national income, various kinds of income notactually received by individuals, non&profit institutions, and so on 4e.g., undistributed corporateprofits, corporate taes, employer contributions for social insurance7. The amount so derived hasto be added to certain receipts that do not arise from production 4i.e., transfer payments andgovernment interest7.

$ersonal &aving/ersonal savings refers to the difference between disposable personal income and personalconsumption ependitures. It also includes the changes in cash and deposits, security holdings,indebtedness, reserves of life insurance companies and mutual savings institutions, the netinvestment of unincorporated enterprises, and the ac$uisition of real property net of depreciation.

$etrobondsThese are instruments which are backed by a specific number of barrels of oil.



$etrodollarsThese are huge sums of money from oil&producing nations other than the 1nited )tates or @reatBritain. These funds are initially converted into urocurrency and deposited with internationalbanks for using them for future investment and for discharging liabilities. These banks traditionallyset limits as to the amount to be accepted from any one country.

$'antom &toc%/hantom stock is used in eecutive compensation programs whereby the eecutive is given anumber of shares of the company. ach share allows the eecutive to the amount, if any, bywhich the market price of the stock at some future time eceeds the current market price.

$'ilips CurveIt refers to a correlation between the unemployment level and the rate of wage changes. Thecurve demonstrates that it is possible to lower unemployment only at the epense of a rising pricelevel. This makes it necessary to trade off between reducing unemployment and maintaining astable 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 phonydividends.

$iece5of5t'e5Action FinancingIt is a lending agreement in which the mortgagee receives, besides regular loan interest, anegotiated percentage of the gross income of an income property, of increases in rentals over astated period of the life of an income property, or the gross or net profit of a commercial orindustrial enterprise.

$igou ffect ConceptIt is a theoretical belief that counter cyclical force under an etreme condition might provide somestimulus to an economy in a depression.

$in% &'eetsThese are price $uotations of many over&the&counter stocks that are published on pink sheets.

$ITIThe abbreviation stands for principal, interest, taes, and insurance while describing the monthlycarrying charges on a mortgage.

$ivotal &toc%/ivotal stock is one which is accepted as the leader of its group. It often influences the activity ofother stocks.

$ledged Loan

It denotes a loan which has been pledged as a security for a borrowing.

$ledgingIt 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.



$ointIt is a loan discount being a one time charge which is used to adjust the yield on the loan to whatmarket conditions demand. ach point e$uals one percent of the principal amount. It is also theminimum unit in which changes in futures price may be epressed.

$oint of &ale

It is a system that allow bank customers to effect transfers of funds from their bank accounts andother financial transactions at retail points of sale.

$oint5of5&ale TerminalIt 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 financialtransactions.

$olicy DividendIt means a refund of part of the premium on a participating life insurance policy reflecting thedifference between the premium charged and actual eperience.

$ool

The jargon has several meanings one of which signifies a combination of resources of funds, andso on, for some common purpose or benefit. It also refers to an agreement between two or morecompanies to curtail output, divide sales areas, or in any other way avoid competition. The termalso stands for firms joined to share business over a fied time. It also suggests a combination ofpersons organi*ed for the purpose of eploiting stocks.

$ortfolioThese are securities held by an individual or institution. A portfolio may contain bonds, preferredstocks, and common stocks of enterprises of various types.

$0&D C0RBThe abbreviation stands for seven functions of administration which are as followsC planning,organi*ing, staffing, directing, coordinating, reporting, and budgeting.

$osition &'eetIt is an accounting statement, ehibiting the commitment of a bank or foreign echange firm inoverseas currencies.

$reemptive Rig'tIt is the benefit available to a stockholder to buy a portion of a new issue of stock e$ual to hiseisting percentage holding.

$remium FinanceIt is a facility that permits an insured to finance his payment over a specified period of time withinthe term of the policy.

$remium $ayIt 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 bereceived 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 epects to reali*e or pay out from holding an asset orliability, discounted by an appropriate rate of interest.

$reservation of CapitalIt is a type of investment made with the intention of preserving capital by way of avoiding high&risk

situations.

$rice ClearingIt is the settlement price at which a clearinghouse clears all the buy and sell orders for the day, orat which an echange settles unli$uidated contracts.

$rice Fi!ingIt is an agreement made by competing organi*ations to avoid competitive pricing. It is done bycharging 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'ipIt refers to a situation in which prices can be determined by one major manufacturer in anindustry, thus influencing others to accept the price as determined.

$rice LimitIt is that price entered on the trading floor of an echange which is used for placing an order tobuy or sell.

$rice &preadingIt is an act of simultaneous purchase and sale of options in the same class with the sameeploitation date but with different striking prices.

$rice5arnings RatioIt 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'eoryIt is a theory which states that imports of precious metals increase the supply of funds andtherefore advance the price level of items using these metals.

$rimary .ar%etIt is the initial market for any item or service. It also signifies an initial market for a new stockissue. The jargon also means a firm, trading market held in a security by a trader who performsthe activities of a specialist by being ready to eecute orders in that stock.

$rimary .oneyIt denotes standard money.

$rimary ReservesThese are legal reserves of a bank in form of cash and demand deposits with the %ederaleserve Bank and other banks.



$rime Bill of !c'angeIt is a draft or trade acceptance which states on the face of the instrument that it was createdthrough a business transaction involving the movement of goods.

$rime Interest RateThe 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 ratecharged by a bank. The prime rate level is determined by how much, banks have to pay for thesupply 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.

$rior Deductions .et'odIt is an improper method of determining bond interest or preferred dividend coverage in which there$uirements of senior obligations are first deducted from earnings and the balance is applied tothe re$uirements of the junior issue.

$rivilege IssueIt is a preferred stock or bond that has a conversion or participating right, or has a stock purchasewarrant on it.

$rivilegesThese are options such as puts, calls and straddles.

$ro Rata RateIt is a premium rate charged for a short term at the same proportion of the rate for a longer termas the short term bears to the longer term.

$roducer $ricesIt is the successor to the wholesale price inde. This measure contains data on prices by stage ofprocessing, sector, industry, and commodity.

$rofit and Loss &tatement 20perating &tatement3It is similar to an income and epense statement which gives the summary of a firm9s totalrevenues and epenses with a specified time period.

$rofit .arginIt is the ratio of sales less all operating epenses divided by the number of sales.

$rofit Ta%ingIt is the sale of stock that has appreciated in value since purchase, in order to reali*e the profitthat has been made possible. This activity is often cited to eplain a downturn in the market

following a period of rising prices.

$rofits Ta!It denotes a ta on business profits, ecluding income taes.

$rofit5&'aring TrustIt is a trust established by an employer 4usually a corporation7 as a means of having theemployees share in the profits of the enterprise.



$rogress $ayment $lanIt is a method of paying off construction loan in which the contractor presents to the associationall 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.

$roperty DividendsThese are dividends paid by one corporation in the form of stocks of another corporation, whichthe former may have ac$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 theamount of paid ta being proportional to the ta.

$roprietary AccountsThese are accounts which show actual financial condition and operations such as actual assets,liabilities, reserves, surplus, revenues, and ependitures, as distinguished from budgetaryaccounts.

$roprietary CompanyIt is a nonfunctioning parent company of a nonfunctioning controlling company, formed for thepurpose of investing in the securities of other companies, and for controlling these companiesthrough such holdings. It is synonymous with holding company and parent company.

$rorateIt means to redistribute a portion of a cost to a department or product in accordance with anagreed&upon formula.

$rotected C'eueIt is a che$ue that is prepared in such a manner as to prevent alterations.

$ro!yIt is form of power of attorney given by a stockholder to an individual or individuals to eercise thestockholder9s rights to vote at corporate meetings.

$ublic 0)ners'ipIt signifies ownership by the public of the common or other e$uity stock of a firm.

$ublic Trust FundIt is the fund of a trust whose principal, earnings, or both, must be used for a public purpose.

$ullIt connotes raising the offering price, or lowering the bid price of a stock, or if neither, then to

cancel completely.

$ull Do)nIt refers to the sum of money earned from working.

$urc'ase and &ale &tatementIt refers to a statement sent by a commission merchant to a customer when his futures positionhas been reduced or closed out.



$urc'ase .oneyThese are monies paid to obtain ownership of property.

$urc'ased FundsThese 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 beendiscounted.

$urc'asing $o)er It signifies the value of money measured by the items it can buy.

$ure InterestThis is the price paid for using capital. But it does not include monies for risk and all other costsincurred because of the loan. It is synonymous with net interest or true interest.

$ure .ar%et conomyIt is a competitive economic system where eists numerous buyers and sellers and where prices

are determined by the free interaction of supply and demand.

$utsIt is an option contract that permits the holder to sell a number of shares of the underlying stock ata certain price on or before a fied epiration date.

$uts and CallsThese are options which give the right to buy or sell a fied amount of certain stock at a specifiedprice within a stipulated time. A put option gives the holder the right to sell the stock whereas acall option conveys the right to buy the stock. /uts are purchased by those who think a stock maygo down. A put compels the seller of the contract, commonly known as the option writer, to takedelivery of the stock and to pay the specified price to the owner of the option within the time limitsof the contract. The price specified in a put or call is usually close to the market price of the stockat the time the contract is made. <alls are purchased by those who think a stock may rise. A callgives the holder the right to buy the stock from the writer at the specified price within a fiedperiod 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 eercise theoption, the price paid for the option becomes a loss.

$yramid &elling &c'emesThese are business opportunity frauds, usually promoted through advertisement for jobopportunities guaranteed to yield enormous or $uick profits&re$uiring little education ordemanding a minimal personal investment. There are government regulations against certainpyramid schemes. The pyramider induces people to buy his products, which they are to resell ata higher price.

8

85RatioIt is a concept that eplains how the level of stock market prices affects capital spending&and thusthe overall economy&even though the vast majority of firms never consider raising fresh e$uitycapital. The G&ratio relates the market value of a company9s physical assets to the cost ofreplacing 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 beingvalued at less than dollar for dollar.

8uantity T'eoryIt is a philosophy which states that a peculiar relationship eists between the $uantity of moneyand money income. /eople spend ecess money holdings irrespective of the interest rate and the

manner in which the new money holdings were received.

8uasi5$ublic CompanyIt is a privately operated corporation in which the public has a specific interest.

8uic% RatioIt is the ratio between eisting liabilities and $uick assets that shows an organi*ation9s ability topay off its liabilities $uickly with available funds.

8uic% TurnIt indicates a rapid purchase and sale transaction over a short period of time, may be withinhours.

R

Rag .oneyIt is American term for paper money.

RaiseIt signifies a fraudulent increase in the face value of a negotiable instrument.

Raised BillsThese are denomination of paper money that has been illegally raised.

Raised C'eue

It is a che$ue whose amount has been illegally increased.

Raised 6otesThese are notes on which there is an overprint indicating that the denomination has beenincreased as a result of government revalidation.

RallyIt signifies a brisk upsurge following a decline in the general price level of the market, or in anindividual stock.

Rate BaseThe value established by a regulatory authority, upon which a utility is permitted to earn aspecified rate of return is known as the rate base.

Rate of InflationIt indicates the average percentage rate of increase of the price of money, weighted and stated inannual terms.

Ratio AnalysisIt refers to an analysis of the relationships of items in financial statements.



Real $ropertyThe property that is devised by will to a party 4devisee7 is known as real property. It also meansall fied, permanent, immovable property.

Real "alue of .oneyIt 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 thesale or other disposal of a security

Real5.oney BalancesIt denotes the amount of goods and services that can be bought from a given stock of moneyretained by individuals.

Rebate An unearned interest that may be returned to a borrower if his or her loan is paid off before thematurity date is called rebate. It also refers to a deduction made from a payment or charge. Ascontrasted with a discount, the rebate is not deducted in advance but is returned to the consumer

following payment of the full amount.

RebatingIt is an illegal and unethical practice of selling a policy at less than the legal rate, or allowing theinsured a refund of the premium, or giving him or her the goods of any value, thus avoidingpayment of the full legal premium.

Recapitali*ationIt means altering the capital structure of a firm by increasing or decreasing its capital stock.

ReceivablesThese are receivables owned by a business. These may be pledged as collateral for a loansecured from a bank or other financial institution.

Record DateIt that date on which a person must be registered as a shareholder on the stock book of acompany in order to receive a declared dividend, or among other things, to vote on companyaffairs.

Redeemable RentThe payment of rent that can be recovered is termed as redeemable rent may be with a rentalagreement containing the option to buy the property.

RedemiseIt means to renew a lease.

Redemption FundIt refers to a fund created for the purpose of retiring an obligation.

Redemption Rig'tIt is the right of a defaulted mortgagor to redeem his property after default and court judgement,both before and after its sale.



Reservation $riceeservation price is the highest offered price at which a seller will continue to hold back fromselling. The seller will, however, sell at any offer above the reservation price.

Reserve CurrencyThe foreign funds retained by a country9s central bank as a vehicle for settling international

financial obligations is the reserve currency of that nation.

Residuary ClauseIt is the provision in the will or trust agreement that disposes of all of the descendant9s propertyremaining after the payment of all taes, debts, epenses and charges and the satisfaction of allother gifts in the will or trust agreement.

RestitutionIt is the enforced payment of money, or its e$uivalent, to its rightful owner as established by law.

Restoration $remiumThe premium charged to restore a policy or bond to its original value after payment of a loss isrestoration premium.

Restricted Account Any margin account where the debt balance eceeds the maimum loan value of stocks retainedin that account is termed as a restricted account.

Restricted AssetsThat money or other resources the use of which is restricted by legal or contractual re$uirements.

Restricted &'aresThese are common stock shares released under an agreement whereby they do not rank fordividends until some event has taken place&usually the attainment of certain levels of earnings.

Restricted &toc% 0ptionIt is a privilege granted to an employee of a corporation to purchase during a specified period, atthe market price at the date of the option, a specified number of shares of its capital stock.

Restricted &urplusIt is that portion of retained earnings which is not regarded as available for dividends, may bebecause of legal re$uirements or loan agreements.

Retainer The payment to cover future services and advice, submitted in advance to the individual epectedto render services.

Return Item

It is a negotiable instrument, principally a che$ue, which has been sent to one bank for collectionand payment and is returned unpaid to the sending bank.

Return on 6et +ort'It is a ratio of an organi*ation9s net profit following taes to its net worth, providing a measure ofthe rate of return on a shareholder9s investment.



Return on Total AssetsIt is a ratio of an organi*ation9s net profit following taes to its total assets, providing a measure ofthe rate of return on, or productivity of, total assets.

Return $remiumIt 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 eposures than the original estimates.

Revalidated 6otesThe term indicates the paper money bearing an official overprint, stamp, or other mark to indicateits renewed status as legal tender, despite the invalidity of the original note.

Revenue Bonds $ayableIt is a liability account that represents the face value of revenue bonds issued and outstanding.

Revenue TariffsThese are the duties placed on imports with the goal of increasing revenues rather thanprotecting domestic industries.

Reverse &toc% &plitThe jargon signifies reduction in the number of shares outstanding.

Reversing ntriesIt is an accounting procedure by which e$ual and opposite entries are made to an account toadjust 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 revolvingaccount.

Revolving Fund

The money that is renewed as it is used, either by additional appropriations or by income from theprograms it finances is a revolving fund. This ensures that a balance is retained in the fund at alltimes.

Revolving Letter of CreditIt is sort of letter of credit issued for a specific amount that is automatically renewed for the sameamount over a given period.

Revolving Loan A loan that is automatically renewed upon maturity without additional negotiation is termed asrevolving loan.

Ric'

An epression applied to security prices when the current market $uotation appears to be high 4orthe income return low7 in comparison with either the past price record of the individual security orthe current prices of comparable securities.

Rigged .ar%etThe situation that eists when purchases and sales are manipulated to distort a normal supplyand demand price.



Rig't of ActionIt signifies the right to enforce a claim in court.

Ringing 0ut 2or up3It is a mode of commodity brokers and commission merchants of settling eisting futurescontracts by swapping sale and purchase contracts among themselves before the instruments

mature and become deliverable.

Ris% AnalysisIt refers to a scrutiny of the elements or sources of risk in a mortgage loan and of their efforts bothseparately and in combination.

Ris% CapitalThe capitali*ation that is not secured by a lien or mortgage. also The long&term loans or capitalinvested in high&risk business activities. also The common stock from a new enterprise.

Round LotThis is a unit of trading. An amount of stock less than the established unit of trading is called anodd lot.

R$8The abbreviation stands for "re$uest for price $uotation."

Rubricated Accountany earmarked account.

RunIt 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 wishdelivered there.

Running in t'e &'ortsIt signifies purchasing different securities where there is a substantial short position for thepurpose of advancing the price so that those short will purchase their securities back, or covertheir short selling contracts, and hence lead to an additional climb in price.

Runoff The closing prices printed by the stock echange ticker following the closing of the daily market.

&

&addledIt refers to a situation of an individual holding an undesirable security which is bought at a pricehigher than the current market price.

&ales C'argeIt is the amount charged in connection with the issuance and distribution of shares of a mutualfund to the public. )ales charge is added to the net asset value per share in computing theoffering price.



&ales Finance CompanyIt is a financial organi*ation which deals in purchasing installment contracts from dealers andfinancing 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'eoryIt is a concept which states that business cycles occur as people save either more or less thanthe amounts invested in new capital.

&avings RateIt is a ratio that indicates the portion of income saved to income earned.

&cavenger &aleIt is an act of sei*ing of property by the state due to nonpayment of taes.

&crip

It denotes any temporary document entitling its holder or bearer to receive stock or a fractionalshare of stock in a corporation, cash, or some other article of value upon demand, or at somespecified future date.

&crip DividendIt is a sort of dividend issued by a corporation to its stock&holders, which entitles the holder orbearer to receive cash, stock, or a fractional share of stock, or one or more units of the goodsmanufactured, upon presentation or at a specified future date.

&ealingIt is an act of simultaneously revealing the concealed bids out of which the most attractive one isaccepted on the spot, without further bidding.

&easoned LoanIt is a loan that has been on the association9s books for a long period of time thus making evidentthat borrower9s credit is sound.

&easoned &ecurityIt is a security with a fine performance record in the paying of dividends or interest. It also standsfor a security that is listed for a considerable period of time and sells at a relatively stable price.

&econd LienIt refers to a lien that ranks on following the first lien and is to be discharged net.

&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 anythird preferred issue or common stock in dividends or assets.

&econdary .ortgage .ar%etIt is an informally constituted market which includes all activity in buying, selling and tradingmortgages among originators and purchases of whole loans.



&econdary 0ffering)imilar to secondary distribution, the term signifies selling by a large stockholder of a large blockof shares. )uch a sale is fre$uently made on an echange in order to minimi*e the impact on thegeneral market.

&ecurities Company

It is an association relying for its income on securities of other firms, which it retains forinvestment. It may also issue stocks and bonds for its own.

&ecurities DepositoryIt is a physical location or organi*ation where securities certificates are deposited and transferredby bookkeeping entry.

&ecurity Capital)ecurity capital means the low&risk capital 4e.g. government bonds, mortgages7.

&ecurity $rice LevelIt refers to the eisting price level for a specified stock, any group of stocks, or the generalsecurities market at a given period.

&ell 0utIt 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 &'ortIt is a method employed with the epectation of a drop in the market price of the security.

&euestered AccountIt is an account which has been confiscated under due process of law. The account is usually setup in a separate control as disbursement of such an account is subject to court order.

&erial Bonds $ayableIt is a type of liability account used for recording the face value of general obligation serial bondsissued and outstanding.

&erial IssueIt is a bond issue with a stagered maturity which is ordinarily due in e$ual annual amounts over aperiod of successive years.

&ervice CorporationIt is a corporation owned savings associations. It renders services and engages in certainactivities for its owners, such as originating, holding, selling, and servicing mortgages performingappraisal, brokerage, clerical, escrow, research, and other services and ac$uiring, developing, orrenovating, and holding real estates for investment purposes.

&ervice CreditIt is a sort of credit arrangement that allows bills to be paid at month&end for services providedduring the month.

&ervice LifeThe epected time of usefulness of an asset is called its service life.



&ervicingIn relation to mortgage financing, servicing signifies the performance by a mortgagee or his agentof 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 andreappraisals of the real property, readjustment of the terms of the mortgage contract whennecessary, and ta follow&up work.

&ettlement DayIt is the deadline by which a buyer of stock must pay for what has been bought and the sellermust deliver the certificates for the securities that have been sold.

&ettlement 0ptionsThese are the stipulations in a life policy or annuity contract for alternative methods of settlementin place of lump&sum payments.

&ettlement $riceIt 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 thecredit union and cleared through a commercial bank.

&'are LoanIt is a simple interest loan secured by funds on deposits at a credit union or a savings and loaninstitution.

&'are RevenueThese are the payments to the states and localities of a portion of the proceeds from the sale ofcertain federal property, products, and services, and payments to the territories of certain federalta collections derived within their boundaries or from transactions affecting them. It is similar tointergovernmental revenue.

&'oc% LossIt is a loss larger than epected.

&'ort;e is an individual who sells a futures contract in anticipation of purchasing it back at a lowercost.

&'ort BillIt is a bill of echange 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 ashort sale.

&'ort FallIt denotes spending that falls sharply below projections, thus contributing to an economicsluggishness.

&'ort 4edgesThese are sales of futures created as hedges against holdings of the spot commodity or product.



&'ort InterestIt is the sum of the short sales outstanding in a security or commodity or on an echange.

&'ort $ositionIt indicates the total amount of stock an individual has sold short and has covered, as of aparticular date. It also refers to stocks sold short and not covered as of a particular date. 'n an

echange, a tabulation is usually issued once a month listing all issues on the echange in whichthere was a short position of 6 or more shares and issues in which the short position hadchanged by E or more shares in the preceding month.

&'rin%ing &toc%sThese are stocks of corporations that are bought by the firms of their own shares. This drasticallyreduces the number of shares outstanding.

&ig't Bill of !c'angeIt is a bill of echange that becomes due and payable when presented by the holder to the partyon whom it is drawn.

&ig't Rate

)imilar to che$ue rate, sight rate is the echange rate tied to a demand draft or che$ue.

&ingle Capital &tructure CompanyIt is the company having only one class of security outstanding.

&ingle Debit ReportingIt is a method used by mortgage bankers for reporting the current status of its mortgages whenmaking a regular remittance to an investor.

&%imming $ricesIt is a high introductory price followed by a series of price reductions, designed to get all the tradethe market will bear at one price level before lowering the price, as well as to appeal to the moreprice conscious consumer.

&%ip;e is the person owing money who has moved leaving no forwarding address.

&%ip5$ayment $rivilegeIt is a privilege offered in certain mortgage contracts that allows the borrower to skip monthlypayments 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 placingof 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) AssetIt is an asset which can be converted into cash, near its book value generally after a lengthypassage of time.



&luggis' .ar%etIt is a slow&moving, inactive securities trading where volume is unusually low and also very fewstocks are traded with only minimal price fluctuations.

&lumpIt suggests a short&lived decline in the activity of a business or economy.

&mall LoanThe 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 protectsboth the borrower and the lender.

&mart Credit CardsIt is a credit card which deducts charges from a customer9s bank balance.

&mart .oneyThey are eperienced and professional security traders who eploit inside information to make

profits at the cost of other investors.

&mas'It signifies a severe drop in the market, approaching a panic.

&no)ballingIt is a resulting transaction following stop that become market orders, during periods of eitheradvance or decline.

&ocial &ecurityIt is the combination of social insurance plans sponsored by the government, and including oldage and survivor9s insurance and unemployment insurance. These programs are financed

through wage and payroll deductions.

&oftIt is a security or general market that moves toward a lower price level.

&oft currencyThese are the funds of a country controlled by echange procedures, thereby having limitedconvertibility into gold and other currencies.

&oft LandingIt is situation where an economy slows down from a period of unsustainable growth to a slowerbut more manageable growth rate, and does so without a recession.

&oft LoanIt is a form of loan with generous terms of repayment and also occasionally carrying a low rate ofinterest.

&oft .oneyIt signifies the paper currency, as distinguished from coinage or hard money.



&old LoanIt is a sort of mortgage loan that has been sold to another institution but is still serviced by theseller.

&old50ut .ar%etIt is a market in which li$uidations of weakly held contracts has largely been completed and

offerings have become scarce.

&pecial DepositIt is a fund set up for paying interest, dividends, or other debts, or to insure the performance ofcontracts, and other deposits of a special nature.

&pecial Dividend)imilar to etra dividend, special dividend is a further dividend in stock or money in addition to theregular corporation dividend.

&pecial Dra)ing Rig'tsIt is the amount by which each nation is authori*ed to have its international checking account withthe International -onetary %und go negative before the country must ask for additional loans.

&pecial Interest AccountThe 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 onaccount of its si*e and the market in the particular issue.

&peciality FundIt 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.

&pecieIt denotes money in form of coin.

&pecific LegacyIt is a gift, by will, of a specific article of personal property.

&pecific &ubsidyIt is the per unit subsidy on a commodity.

&pecific Ta!It is the per unit ta on a commodity.

&peculative $ositionIt is an open position held by a trader that is unhedged.

&peculative $urc'asingIt is an act of purchasing items when prices appear lowest, with the epectation that there will beincrease in prices in near future and thus making possible a profit.



&teadyThe term indicates that market prices are barely moving in any direction.

&terlingIt is the currency of @reat Britain and the unit is pound sterling. It may also represent bills ofechange which are drawn in terms of British currency.

&toc% Borro)edIt indicates securities borrowed by one broker from another to result in delivery. )uch securitiesare subject to going interest and premium rates.

&toc% CompanyIt is a company in which stockholders contribute all the capital, pay all the losses, and share inthe profits.

&toc% JobbingIt 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 tosalary, by giving them an opportunity to buy a specified amount of company stock, often belowthe market price.

&toc% $o)er It denotes the power of attorney which permits a person other than the owner of stock to legallytransfer the title of ownership to a third party.

&toc% ,ieldIt is the rate of return on a stock based upon its market value as of a particular date and thedividend being currently paid by the company.

&toc%5$urc'ase $lanIt refers to a company plan for the purchase of stock by employees, in which the employer may ormay 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 LossIt is an assurance given by one country, called the reinsurer, to another country, called thereinsured, that losses over and above an agreed upon amount will be paid by the reinsuringcompany.

&top 0rder

It indicates an order to buy at a price above or sell at a price below the current market price. )uchorders are ordinarily used to limit loss or to protect unreali*ed profits on a short sale.

&top $riceIt is that price at which a customer9s stop order to his broker becomes a market order.

&topped atIt denotes a price for a security which is often guaranteed to a purchaser or a seller by thespecialist in it.



&traddleIt refers to an act of purchase or sale of an e$uivalent number of puts and calls on a givenunderlying stock with the same eercise price and epiration date. It also indicates an optionallowing 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 toreceive goods.

&traig't InvestmentIt is a preferred stock or bond, limited in interest or dividend rate, that is bought by reason of itsincome return and not for epectation of any rise in value.

&traig't LoanIt is type of loan granted to an individual or other legal entity on the basis of the debtor9s generalability to pay. Any form of collateral security does not support such a loan.

&traig't $aper It denotes unsecured notes, bills of echange and acceptances.

&treet Bro%er ;e is an over&the&counter broker, as distinguished from a broker who is a member of anechange.

&treet 6ame Any stock certificates in the name of a broker who trades in securities and is a member of anechange is said to be in "street name."

&tringencyIt is a money market condition in which it is hard to obtain credit, accompanied by an increase inthe rate of interest.

&tripIt signifies a stock option contract made up of two puts and one call.

&trong .ar%etIt refers to a market where there is a greater demand for purchasing than there is for selling.

&tructural InflationIt is a form of inflation in which increase in prices are due to an uneven upward demand or costpressures in a key industry, even when total demand remains in balance with total supply for theeconomy as a whole.

&ub#ect Bid

It refers to a bid that is negotiable, rather than firm.

&ub#ect to C'eueIt is any payable&on&demand che$ue where the customer need not inform the bank of his desireto withdraw funds.

&ub#ect to &aleIt 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 madehas accepted the offer.

&ubmortgageIt is the result of a pledge by a lender of a mortgage in his or her possession as collateral toobtain a loan for himself or herself.

&ubordinated DebentureIt is a special debenture whose bearer has a chance for payment lower than that for othercreditors. As it holds a higher yield, it is considered a risky bond.

&ubordinated InterestIt refers to an interest in property that is inferior to another interest 4e.g., a second mortgage thatis inferior to the first mortgage7.

&ubrogationIt 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'tsIt is a privilege granted to the stockholders of a corporation to purchase proportionate amounts ofa new issue of securities at an established price. )uch price is usually below the current marketprice. It also means the negotiable certificate evidencing such privilege.

&ubsistence T'eory of +agesIt is an economic theory which states that wages per employee tend to e$ual what the workerneeds to maintain himself and his family.

&ubstitution AccountIt is a scheme of the International -onetary %und which allows dollar holders to echange themfor 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 strongerone.

&upplemental AgreementIt is an amendment to an agreement ehibiting the additional terms to the agreement.

&upporting t'e .ar%etIt is an act of placing purchase orders at or moderately below the prevailing market level in order

to maintain and balance eisting prices and also to encourage a price rise.

&ur .ortgageIt is a document demanding from a person who has defaulted on mortgage payments to showcause why the mortgage should not foreclose.

&urvivors'ip AccountIt 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 orsurvivors on the death of the other or others.

&uspended TradingIt signifies a binding stock echange decision to stop trading. It is a result of an unusualoccurrence, such as an unepected jump in buy or sell orders on all or several securities.

&uspense FundIt is a fund established to account separately for distributing or disposing certain pending receipts.

&)apIt means to echange or barter. It also signifies an arrangement between the central banks of twocountries for standby credit to facilitate the echange of each other9s currencies. It also refers to aprocess by which portfolios are adjusted to lengthen or shorten maturities or raise or lowercoupon rates to wring out the last bit of revenue.

&)ap FundIt is a fund into which many investors put their own investments and receive a share in the pooledinvestment portfolio.

&)indlingIt is an act of selling worthless shares through misrepresentation.

&)ingIt 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 aspecified price difference.

&)itc'ing

It means selling one security and buying another security.

&yndicated LoanIt is a type of loan to which a number of banks around the world participate.

T

TabIt indicates an unpaid bill.

Ta%e a Bat'It means to suffer a heavy financial loss.

Ta%e on a LineIt means to purchase a huge $uantity of stock of one or more corporations in set time period inconfident epectation of mounting prices.

Target CompanyIt is a firm that is selected by some other company and considered as attractive for the purpose oftaking over or ac$uisition of such firm.



Tur%eyIt stands for any venture that is poor or is profitless or an unattractive investment that appeared tobe attractive in the beginning.

TurnIt is a term used to describe a full cycle of buying and selling securities or commodities.

T)enty $ercent RuleIt is rule of borrowing in banking sector according to which a customer who wants to borrowmoney from bank is re$uired to retain an average deposit balance that is e$ual to at least twentypercent of the desired borrowing.

T)istingIt is an unfair and unlawful way of inducing policyholders to permit a policy to lapse or cancel soas to replace such policy with another, to the disadvantage of the policyholder.

T)o5Dollar Bro%ersThese are brokers+members on the floor of echange eecuting orders for other brokers who arehaving work more than their capacity at that time or for firms having no echange members on

the floor.

Tycoon A business person being etremely wealthy and potentially powerful.

:

:ncollected Cas' ItemsThese are che$ues which are in the process of collection and payment for these che$ues havenot 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 atall or only partially secured by specific reserve.

:nderleaseIt means a sublease.

:nderlying &toc%It is that stock which can be purchased upon eercise of the option.

:ndigested &ecuritiesThese are securities which are issued without any need for or beyond the ability of the public toabsorb them.

:ndivided $rofitsIt refers to undistributed earnings which are available for paying dividends and for the writing offof bad debts or special losses.

:nfunded DebtIt is a debt for short&term or a floating debt which is not covered by a bond.



:nit Ban%ingIt is type of banking in which each bank has a separate and distinct operation, management andcontrol from that of every other bank.

:nit &ystemIt is a type of accounting system in which the records of the customer and the association are

posted simultaneously.

:nlimited AccountsThese are large or reputable businesses who are eligible for any amount of credit.

:nlimited .ortgageIt is an open&end mortgage which is not limited to a fied amount.

:suryIt is the rate of interest that is paid for using another9s money, or the credit etended, whicheceeds the legal limit allowed for that type of transaction by the state whose laws rule thelegality of the transaction.

"

"alori*ationIt refers to an action taken by the government that leads to the establishment of a price or valuefor 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 ofthe banks as an immediate reserve.

"enture CapitalIt represents funds obtained from the issue of new stock. It also stands for funds that are investedin enterprises, which usually do not have access to ordinary sources of capital.

"isible &upplyIt denotes supply of commodities in licensed warehouses.

"isible Trade>isible trade means that portion of trade and commerce among various nations, which is shownby records of transactions that involve echange of tangible things.

"ostro AccountIt is a term used by a depository bank for describing an account with it by a bank in a foreigncountry. It is also means "0our account".

"ouc'er C'eueIt is type of a che$ue to which is attached a voucher which is used for describing the purpose fordrawin the che$ue.

"R. C >ariable&rate mortgage.



+

+adIt refers to roll of paper money.

+age Free*e

It is a limit on salary increment usually imposed by a government.

+age &tabili*ationIt is a program designed by government in order to stop wages from increasing rapidly beyondeisting levels.

+all &treetIt is a very popular name given for the ew 0ork <ity business and financial district.

+all &treet JournalIt 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 inpurchasing a given $uantity of shares designated and is ready to pay for them on the same day.

+are'ousingIt refers to hypothecation of mortgage to a commercial bank as a security for purpose of repayingshort&term loans.

+as' &aleIt is bogus transaction of sale of securities or commodities which are purchased and sold by thesame individual in order to create the sensation of activity or volume of that particular item, be itsecurities or commodities.

+asting TrustIt is a trust of a property which is being consumed gradually.

+atc' FilingIt 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 refersto corporate stock issued by a corporation for property at an overvaluation.

+ea%54oldingsIt 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 IssuedThe abbreviation stands for "when, as, and if issued." It signifies a conditional transaction in asecurity that is authori*ed for issuance but not yet actually issued.



+'ipsa)edIt means to have suffered a substantial loss at both ends of a security transaction.

+'ite lep'antIt is a property whose maintenance is very costly thus making it virtually impossible to operate itat a profit and thus it is evident that loss in such a case is certain.

+ide 0peningIt is a securities situation in which there is a wide difference in the bid and the asked prices at theopening 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 inother ways as it is a slow market mover.

+iped 0utIt stands for failure of a business. It also means an investment loss which is considerable inamount and also not irreversible. The jargon also refers to a situation when all cash and reservesavailable are ehausted.

+ire Transfer It is an order to pay or credit money by telegraph or cable.

+or%ing AssetThese are assets invested in securities which fluctuate more or less with common stock prices ingeneral.

+raparound AnnuitiesThese are certain ta deferral schemes that allows an individual to shelter current interest incomeon bank savings certificate or shares in a mutual fund in a ta&deferred annuity administered byan insurance company.

+riter 'ne who sells an option contract.

+s Abbreviation of warrants.

<

<5CIt is an abbreviation of e&coupon.

<5ClThe abbreviation denotes ecess current liabilities.

<5DIt means e&dividend.

<5DisIt denotes e&distribution.



<5Div Abbreviation for e&dividend.

<5IIt stands for e&interest.

<5In Abbreviation denotes e&interest.

<5LoanIt is a type of loan made under a law other than a small loan law.

<5Rts&ights.

<<=ithout securities or warrants.

,

, LoanIt denotes a loan made under a law other than a small loan or H loan law.

,an%ee Bond .ar%etIt refers to certain issues floated in the 1nited )tates, in dollars, by reign government andcorporations.

,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 .aturityIt is a rate of return given as a percentage when the investment is retained until maturity.

,o5,o &toc%sThese are highly volatile securities which are high&priced and whose prices fluctuate greatly.

=

=BBIt is an abbreviation of ero&based budgeting.

=ero Based BudgetingIt is a management techni$ue in finance which aims at redirecting funds from lower&prioritycurrent programs to higher ones, pinpointing opportunities for improving efficiency andeffectiveness, reducing budgets while raising operating performance, and improving profitability.

=ero5Balance AccountIt 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 eist in that account to cover theitems.

=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 pricethat is lower 4higher7 than the earlier, different price.