Here is a list of common financial terms. Click on the letter that corresponds with the first letter of the financial term to get the definition.
An equally weighted index of 1700 stocks on NYSE, AMEX, and OTC exchanges. A broad-based index that is less volatile than the more popular DJIA.
A life insurance product whose value fluctuates and is tied to the performance of a market index or a portfolio of securities. Often has a tax-deferred feature and works like a mutual fund in most cases. Your premium payments buy more shares.
Interest rate that is adjusted as market rates change. Can be found in adjustable rate mortgages, bonds, and certificates of deposit.
See Rating for CDs and Money Markets.
The entitlement to full pension plan benefits. Normally expressed as the number of months and years of employment required to be vested.
The measure of the tendency of prices to fluctuate widely. Prices of small companies tend to be more volatile than those of large corporations. Beta is a measure of volatility.
The number of shares of stock or options that have traded as of the opening of a given trading day. Volume is the consolidated volume, that is to say, it includes shares traded on all exchanges. For example, Apple Computer stock trades on both the over-the-counter (OTC) NASDAQ Exchange and the Pacific Exchange. For an Apple quote, volume would include shares as of the opening of both these exchanges.
Most common stock entitles a shareholder to the right to vote in person, or by proxy, on corporate elections and other related matters. Some companies issue both voting and non-voting shares, for example, Class A and Class B.
