Quantity
The number of shares (stocks, mutual funds), contracts (options, futures), or the face value of bonds.

Quick Ratio
Cash and equivalents plus receivables divided by current liabilities (i.e., debt) for a given corporation.

Regular Initial Minimum
The minimum dollar amount required to open a regular account with a given mutual fund.

Regular Subsequent Minimum
The minimum dollar deposit accepted for an existing regular account with a given mutual fund.

Reinvest Distributions
In brokerage, feature where user requests that mutual fund distributions be reinvested in more shares, or instead paid in cash.

Rejected Order
Order which is invalid or unacceptable.

Reporting Date
The estimated date for the next report of quarterly financial data for a given corporation.

Regulation T
A regulation established by the Federal Reserve Board which covers the extension of credit to clients by securities brokers, dealers, and members of the national exchanges. It sets the initial margin requirement and defines eligible, ineligible, and exempt securities.

Regulation U
A U.S. government regulation that covers the lending of money by banks to their customers including brokerage firms.

Return of Capital
For a long investment, when a portion of the quantity (for a bond) or net amount (for a stock) of an investment is returned to the buyer. Returns of capital are tax-exempt distributions and reduce cost basis of an investment to a maximum of zero. Below zero, any additional returns of capital are treated as capital gains distributions and are taxable.

Return on Investment
Return on investment gives you a return value for the life of the investment, not just a gain or loss, or the year-to-date return.

Right
A security granted to shareholders of a corporation to subscribe to new shares of common stock before it is publicly offered. It is usually transferable and may be traded in the open market.

Return on Equity %
The current fiscal years estimated earnings per share (EPS) divided by the book value per share.

100 shares of stock.

Sales
The total sales or revenues for the indicated year for a given security.

Sales Charge
The percent of your investment capital that is subtracted immediately to cover sales and promotion costs when purchasing mutual funds. For example, if you invest $10,000 in a fund with an 8% sales charge, a sales fee of $800 is subtracted and your initial investment principal is $9,200. Also called Front Load and Initial Load.

Sales/Price Ratio
The last fiscal year's sales or revenues per share divided by the latest price per share for a given corporation.

Sales 3-Year Growth Rate
The unweighted average of the growth rate for sales or revenues over the last 3 years for a given corporation.

Sector Equities
Equities purchased from companies belonging to a specific sector within an industry, such as airline or electronic stocks.

Security
An investment that is represented by a negotiable document issued by a corporation or governmental entity for the purpose of raising capital. A listed security is one that is approved for trading on an exchange. A delisted security is one that is removed because of financial insufficiency or breaking of exchange rule. Two main categories: equity (claims against the earnings of a company by shareholders - includes stocks and mutual funds) and debt (claims against the assets of a company or government - includes bonds, notes, bills, and commercial paper). Some securities have hybrid characteristics such as preferred and convertible bonds. Securities are also classified by whether they are taxable, or tax-exempt. Most securities can be identified by unique ID numbers called CUSIP numbers or by symbols. Note: The term investment is more generic than security.

Sell(s)
A Transaction Type for the selling of a security. A sell creates a closed lot since it is the closing transaction for an open lot.

Send Trade
This will direct your order to us for review. If approved, it will be immediately directed to the appropriate exchange for execution.

Series E Bond
U.S. Government savings bond issued from 1941 to 1979.

Series EE Bond
U.S. Government savings bond with a 10-year maturity and face value of $50 to $10,000. It has properties of a zero coupon bond since it is purchased at a discount to face value.

Series HH Bond
U.S. Government savings bond available in denominations of $500 to $10,000 in exchange for Series E or EE bonds.

Settlement Date
Date by which an executed order must be settled. Buyers pay for securities with cash, and sellers deliver certificates of sold securities.

Short Account
A margin account through which a client can sell stock which he does not own. Sale proceeds are kept in the short account and marked to the market at the close of each business day to determine the account's credit balance.

Short Sells
A trade where the investor borrows a security from the broker, sells it at market price, and receives the proceeds of the sale less commission. The short seller then hopes that the security will go down in price so he or she can buy-to-cover the security back and return it to the broker. However, if the price goes up, the seller will eventually receive a margin call and be expected to either buy at current price and take the loss or add more cash or marginal securities to his account, and be vulnerable to a further short squeeze. When you are long in a security, the worst you can do is lose an amount equal to the cost of the security. When you are short, theoretically, your risk is unlimited as a security's price can keep rising forever.

Short Balance
Total proceeds from all short open lots minus all net amounts paid for covered trades in a given account.

Short Value
The latest value of all short investments (or short open lots) in a given account. See Short Sells.

Simplified Employee Pension Plan (SEP)
Type of pension plan into which both employer and employee contribute. It is easier to set up than a 401(k) or KEOGH and allows greater annual contributions than an IRA.

Small Stock Index
An index measuring a basket of small-capitalization stocks (companies whose revenues are typically under $500 million) which are thought to be representative of changes in the stock prices of small companies as a whole.

S&P Indices
Standard & Poor's Indices are broad-based measures of changes in stock market conditions based on the performance of widely held common stocks. Standard & Poor's, a division of The McGraw-Hill Companies, Inc., provides a broad range of investment services, including stock and bond ratings, composite indices, a wide variety of investment advisory reports, and so forth.

S&P 500
The basket of 500 widely held stocks which are thought to measure changes in stock-market conditions. The S&P 500 index is a service of Standard & Poor's corporation, a financial advisory, securities rating, and publishing firm. The index tracks industrial, transportation, financial and utility stocks.

S&P 500 Index
The S&P 500 index comprises 500 companies that account for 85% of the dollar value of all NYSE stocks. It is a broader and more representative average than the DOW but both move in tandem most of the time. The S&P 500 index does not include dividends. It is capitalization weighted, meaning that stocks with the highest value (number of shares outstanding multiplied by the price per share) have the greatest affect on the index. The S&P 500 index measures (also defined in the glossary) can be used to gauge the health or direction of the stock market. See S&P 500 200-Day Moving Average, S&P 500 P/E Ratio, S&P 500 Yield.

S&P 500 200-Day Moving Average
This value is calculated by averaging all the closing values of the S&P 500 for the last 200 days. You can use this and the following measures to create market timing alerts.

S&P 500 Price/Earnings (P/E) Ratio
The latest S&P 500 value divided by the last 4 quarters earnings per share. Reading above 24 and below 8 are considered sell and buy signals respectively by many analysts.

S&P 500 Yield
The sum of dividends of all stocks in the S&P 500, divided by the latest value of the S&P 500. Reading below 3 and above 6 are considered sell and buy signals respectively.

S&P 100 Index
A subset of the 500 index. Options based on this index (OEX) are very popular.

S&P Mid Cap 400
An index comprised of 400 mid-sized corporations.

S&P Rank
The computerized ranking system for stocks based on the last 10 years of dividend and earnings data of each company listed: A+ = Highest; C = Lowest; D = Company undergoing reorganization; LIQ = Company in liquidation, NR = No ranking due to insufficient data.

Special Subscription
A form of margin transaction in which a client can obtain advantageous credit to acquire a margin security through the exercise of a right or warrant.

Start Year
The year a given mutual fund began operation.

Stock
Ownership claims on a corporation's earnings and assets. See Common Stock, Preferred Stock.

Stock Power
Power of attorney form by which ownership of a security can be transferred from the registered owner to another party.

Stock Split
A change in the number of shares outstanding (in circulation). The number of shares are adjusted by the split ratio, e.g. 2 to 1. In this case, 1000 shares splits to 2000 but the opening price and current price are cut in half. The overall effect is to maintain the same cost and current value of an investment while increasing the number of shares and lowering the per share price. Reverse splits reduce the number of shares. Splits are done to reduce the cost per share to make it easier for small investors to own the stock in round lots.

Stop Order
An order to sell if and when the market price falls to a specified price. A stop order becomes a market order when the stop price is hit and the order will be executed at any market price at, above or below stop price. A variation of this, the stop-limit order, will only be executed at the limit price. If the market falls quickly: a stop order might be executed at a price much lower than the stop price and a stop-limit order might not get executed at all. Some investors prefer to set Mental Stops. When a stop order is executed an investor is said to be Stopped Out.

Strike Price
The strike, or exercise, price of an option is the specified share price at which the shares of stock can be bought or sold by the buyer if he exercises the right to buy (in the case of a call) or sell (in the case of a put). A strike price is the actual numeric value of the option. For example, a May option may have strike prices of 45, 50 and 55. Strike prices are determined when the underlying reaches a certain numeric value and trades consistently at or above that value. If, for example, XYZ stock was trading at 49, hit a price of 50 and traded consistently at this level, the next highest strike may be added. See Call Option.

Symbol
The official trading symbol used in actual transactions for stocks, options, mutual funds, or indices. A symbol uses letters, numbers, or a combination of the two. If the symbol contains any numbers, it means that it is a mutual fund that has not been assigned an actual trading symbol by NASDAQ and there is no quote service on that fund. For any stock traded on the NYSE, AMEX, or OTC, the symbol is the official trading symbol used in actual transactions. Preferred stock has a dash followed by the preferred stock class. For example, Company B Class A is displayed as BBB-A. Indices have their own symbols, which are shown in the Add Index screen.

T-Bills
T-Bills, the common name for a U.S. Treasury bill, are short-term (with a maturity of up to a year) discounted government securities sold through competitive bidding at weekly and monthly auctions in denominations from $10,000 to $1 million. They can also be purchased by individuals directly from a Federal Reserve Bank in denominations of under $500,000.

Tax-Deferred
Applies to an investment whose accumulated earnings are free from taxation until the investor takes possession of them. Usually, you cannot take possession of these investments without penalty until you are 59-1/2 years old. Tax-deferred investments are allowed by the IRS to save for retirement. See Real Tax-Deferred Accounts.

Tax-Exempt Security
An investment (generally a debt instrument, i.e., bond) whose interest is exempt from taxation by federal, state, and/or local authorities. Frequently called municipal bonds or munis, whether they were issued by a state government or agency, or by any local political district or subdivision. Tax-exempt securities are best applied to Taxable Accounts as the yield is not competitive enough to be used in tax-deferred accounts. Tax-exempt can be taxable under certain circumstances. See Real Taxable Accounts and Municipal Bonds.

Tax Method
IRS defined system for determining which Open Lots to sell or buy-to-cover when all lots of an investment are not sold or covered at one time. FIFO means selling or covering the lots in the same order by date as they were bought or shorted. Specific Lot means selling or covering specific lots that have been pre-selected before the trade is actually executed. Average Cost means using the average cost of all shares as the cost basis without the need to specify which lot is actually being traded.

Technical Short Value
The market value of a security which the client has sold but has not yet delivered to the broker.

10 Year Cumulative Return
See Cumulative Return (1-Yr, 3-Yr, 5-Yr, 10-Yr).

To/From Date
Date to which the call may occur at the stated price for a given callable bond or the data from which the call will be in effect at the stated price. See Bond.

Total Assets
Total assets owned by a given mutual fund including cash and equivalents. As funds get very large, their performance may suffer.

Total Cost
The sum of cost of all long open investments in a given account.

Total Liabilities
The sum of your Short Market Value plus your Debit Balances from the prior trading day.

Total Return
Price appreciation plus interest, dividends, and capital gain distributions for a given investment or account during a given period. Year-to-date return is for a partial year. Also useful is last quarter, last four quarters, and one month total return, which cover the indicated time periods. Total return is the best way to measure the performance of similar or different investments.

Trade
Transaction that adds (buy or short sell) or removes a lot (sell or buy-to-cover) to or from open investments. Trade date is the date on which the trade occurs. Settlement date is the date by which the account must be debit or credited for results of the trade and it is normally three business days after trade date.

Treasuries
Debt securities of the U.S. government, issued at various schedules and maturities, and secured by its full faith and credit.

Turnover
The percentage of all securities owned by a given mutual fund which were sold in the last year. For example, a turnover of 200% means that the entire portfolio of the fund turned over twice completely in the last year.

12b-1 Fee
An annual fee, expressed as a percentage of NAV, specifically designated for marketing expenses for a given mutual fund. This fee is included in the expense ratio.

12 Mth Cumulative Return
See Cumulative Return (1-Yr, 3-Yr, 5-Yr, 10-Yr).

Uncovered Options
Selling a call option to open in which the seller does not own the underlying security position. Also called naked options.

Underlying Security
The security that must be delivered when another security is exercised. For example, if a call option is exercised, then the underlying stock is delivered to the call owner. Warrants, rights, options, and convertible securities all have underlying securities. For futures options, futures are the underlying security.

Undervalued Security
When a security's price is below what a market analyst calculates based on fundamentals such as earnings potential, cash flow, and hidden assets. These securities are prized by value investors. These companies may become takeover targets.
Top of 'U'

Undistributed Earnings
The same as retained earnings. It is earnings that are not paid as dividends, but reinvested in the company.

Unissued Stock
Stock authorized in a company's charter but for some reason, not issued and not outstanding. Contrast with treasury stock, which has been issued and then repurchased and is therefore not outstanding.

Unit
Smallest tradable component of an asset: share for stocks and mutual funds, $1000 quantity for most bonds, and contract for options and futures.

Unit Investment Trust
A package of investments, usually bonds, sold to investors as a unit which is a fractional ownership of the total package. Unlike a mutual fund, the investments in a unit do not change and are not replaced if they mature or are called. Usually sold by brokers.

Unlisted Security
A stock or bond not listed on an exchange (usually New York or American) which trade in the over-the-counter market.

Unpaid Dividend
A dividend that has been declared by a corporation but not yet paid. It is carried as a liability until the payment date.

Unsecured Debt
A bond issued by a corporation which is not backed by specific collateral. Same as debenture. It is backed instead by the general credit or promise to pay by the issuer.

U.S. Gov't Issues
Debt issued by the U.S. Treasury or other government agencies (Ginnie Mae, Fannie Mae, Freddie Mac, etc.). U.S. Treasury issues include T-Bills (1 yr and less), T-Notes ( 1-10 yrs), and T-Bonds (10 -30 yrs). They are generally not callable and not subject to state and local taxes, and are considered the safest bonds available as they are backed by the full faith and credit of the U.S. government. The other agencies issue mostly pass- through mortgage bonds that pay interest and return of principal and are indirectly backed by the Treasury.

U.S. Savings Bond
These bonds (series EE) are zero coupon-like bonds sold by the U.S. government at 50% of face value that can be redeemed for face value after 5 years.