| A | B |
|---|
| Futures Contract | an agreement providing for the future exchange of a particular asset at a currently determined market price |
| Options | Rights to buy or sell a stated number shares of a security within a specified period at a specified price |
| Puts | An option to sell a specified number of shares of stock at stated price within a specified period |
| Calls | An option to buy a specified number of shares of stock at a stated price within a specified period |
| LEAPs | puts and calls with longer maturity dates, up to two years |
| ADRs | Securities representing an ownership interest in the equities of foreign companies |
| P/E Ratios | The ratios of stock price to earnings, using historical, current or estimated data |
| Stock Split | The issuance by a corporation of shares of common stock in proportion to the existing shares of outstanding stocks |
| Stock Dividend | a payment by the corporation in shares of stock rather than cash |
| Payout Ratio | dividends divided by earnings |
| Dividend Yield | dividend divided by current stock price |
| Book Value | The accounting value of the equityt as shown on the balance sheet |
| Common Stock | An equity security representing the ownership interest in a corporation |
| Preferred Stock | An equity security with an intermediate claim |
| Junk Bonds | bonds that carry ratings of bb or lower, with correspondingly higher yields |
| Bond Ratings | Letters assigned to bonds by rating agencies to express the relative probability of default |
| Corporate Bonds | long-term debt securities of various types sold by corporation |
| Senior Securities | Securities, typically debt securities, ahead of common stock in terms of payment or in case of liquidation |
| debenture | an unsecured bond backed by the general worthiness of the firm |
| Municipal Bonds | securities issued by political entities other than the federal government and its agencies, such as states and cities |
| Treasury Bonds | Long-term bonds sold by the U.S. government |
| Treasury Notes | Treasury securities with maturities up to 10 years |
| Morgage Backed Securities | Securities whose value depends upon some set of mortgages |
