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Commonly used term for an employee of a broker-dealer who has been registered with the FINRA and/or one of the exchanges. Such employees are permitted to solicit buy and sell orders for securities and, in general, to handle client accounts. Technically, the term applies to a registered representative, although some member firms use other designations for registered employees.

A plan which provides for the periodic purchase of mutual fund shares over a period of time.
See also: Voluntary accumulation plan

U.S. government paper issued by U.S. government agencies and corporations sponsored by the government.

A portfolio characterized by high turnover of holdings; attempts to cash in on situations involving higher risk and rapid appreciation of capital.

A policy of concentrating on maximum return. Such a policy entails increased risks.

American Stock Exchange

Popular term for the yearly report made by a company to its stockholders. Federal law requires all registered corporations to make such reports. They usually contain a balance sheet, an income statement, a list of changes in retained earnings, and how income of the corporation was used. The report form filed annually with the SEC is called Form 10-K, which expands on items in the annual report. Shareholders may request Form 10-K from the corporate secretary for additional information.

A contract between two individuals, usually an insurance company and the "annuitant," providing for guaranteed payments at certain intervals of time, for either life or a stipulated number of years.

The lowest price at which anyone will sell a security at a given time on a market.
Contrast: Bid price

Property owned by an individual, partnership or corporation.

The NYSE and AMEX are auction markets, in that they involve a two-way trading of securities through agents and brokers.

Feature that permits an equity owner to receive dividend distributions in the form of new shares in lieu of a cash distribution. The feature is common to most mutual funds, which also permit the reinvestment of capital gains on fund portfolio transactions. About 800 NYSE-listed corporations also have dividend reinvestment programs.

Feature of many mutual funds that permits fundholder to receive a fixed-dollar amount each month or quarter. Check is sent to the holder, and dividends, capital gains, or share liquidation is used to pay for the withdrawals. Also known as check-a-month plan.

A method of determing cost basis for redeemed mutual fund shares, using the average cost of all shares owned.