Wednesday, June 25, 2008

Baylor Byrnes Brackman - Preventing Fraud

Baylor Byrnes Brackman Group as promised, will continue to provide you with the terms and knowledge you need to know in the financial world to help prevent fraud.

Baylor Byrnes Brackman Group will be providing numerous updates in the following days with more terms to help provide you a better understanding.

Day order An order you give your Investment Advisor to buy or sell an investment, good only on a specific day.

Debenture Another name for a bond. With a debenture, your money is secured by the credit of the company or government issuing it, rather than by specific assets.

Debt Money that has been borrowed and must be repaid, usually with interest and by a set date.

Default A term used when a person or company breaks the terms of an agreement.

Director A person elected by the holders of common shares at an annual meeting to direct a company's policies.

Discount to par The amount by which a preferred share or bond is sold below its face value. The buyer then receives face value at maturity.

Discounted The market price of a share is said to have been 'discounted' when an event that is expected to happen, such as an increase in dividends or lower earnings, has been reflected in its price Baylor Byrnes Brackman Group explains.

Diversification The practice of buying several different types of investments over a broad range of industries, sectors and companies in order to reduce your risk if one particular industry, sector or investment performs poorly.

Dividend The part of a company's profits that you may receive if you are a shareholder of the company. Preferred shares earn a set dividend, while the dividends for common shares vary with the company's profits. Companies are under no legal obligation to pay dividends to their shareholders.

Dollar cost averaging Investing a set amount in a specific investment at regular intervals. As a result, when the value of the investment goes down, you're buying more of it, and when it rises, you're buying less. The overall effect reduces the average cost of your investment.

Dow Jones Industrial Average - (DJIA) is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials but including American Express Co. and American Telephone and Telegraph Co. Prepared and published by Dow Jones & Co., it is the oldest and most widely quoted of all the market indicators. The components, which change from time to time, represent between 15% and 20% of the market value of NYSE stocks. The DJIA is calculated by adding the closing prices of the component stocks and using a divisor that is adjusted for splits and stock dividends equal to 10% or more of the market value of an issue as well as substitutions and mergers. The average is quoted in points, not in dollars.

Earnings Per Share (EPS) Baylor Byrnes Brackman Group says also referred to as Primary Earnings Per Share. Net income for the past 12 months divided by the number of common shares outstanding, as reported by a company. The company often uses a weighted average of shares outstanding over reporting term.
Effective Annualized Seven-Day Yield Yield for a seven day period including the day reported, calculated by adding one to the base period return used in calculating the standard seven day yield raising the total to the power of 365 divided by seven and subtracting one (NOTE: To be reported on Wednesday only).
Electronic Data Gathering, Analysis, and Retrieval -EDGAR An electronic system implemented by the SEC that is used by companies to transmit all documents required to be filed with the SEC in relation to corporate offerings and ongoing disclosure obligations. EDGAR became fully operational in 1995.
Ending Net Asset Value The market value of a fund share on a predetermined end date.
Ex-dividend Interval between the announcement and the payment of the next dividend.
Ex-dividend date The date on or after which a security begins trading without the dividend (cash or stock) included in the contract price.
Execution The process of completing an order to buy or sell securities. Once a trade is executed, it is reported by a Confirmation Report; settlement (payment and transfer of ownership) occurs in the U.S. between one (mutual funds) and three (stocks) days after an order is executed.
Family of Funds Group of mutual funds managed by the same investment management company. Each fund typically has a different objective; one may be a growth-oriented stock fund, whereas another may be a bond fund or money market fund. Shareholders in one of the funds can usually switch their money into any of the family's other funds, sometimes at no charge. Family of funds with no sales charges are called no load families. Those with sales charges are called load families Baylor Byrnes Brackman Group.
Face value The value of a bond or debenture that is printed on the face of the certificate. Face value is usually the amount the issuer will pay at a certain date. Face value is no indication of market value.
Fixed income securities Investments such as bonds, debentures and mortgage-backed securities that provide you with a regular income.
Futures contract An agreement to buy or sell an investment or asset at a specified price on a specified date. The price is set through a futures exchange, a trading market like a stock exchange.
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Tuesday, June 17, 2008

News Article Baylor Byrnes Brackman Group

Baylor Byrnes Brackman Group is fully committed to help educate you in the world of in finance. With that being said, listed below is some terms for you to get familiar with that will provide you more confidence in understanding finance terminology.

Baylor Byrnes Brackman Group will be providing numerous updates in the following days with more terms to help provide an education with financial terms.

Accrued interest Interest that has accumulated on an investment but has not yet been paid to you. Accrued interest is often factored into the price if you buy or sell an investment before it matures.

Alpha A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of 0.4 means the fund outperformed the market-based return estimate by 0.4%. 0.6 means a fund's monthly return was 0.6% less than would have been predicted from the change in the market alone.

American Depository Receipt (ADR) A security created by a U.S. bank that evidences ownership to a specified number of shares of a foreign security held in a depository in the issuing company's country of domicile. The certificate, transfer and settlement practices for ADRs are identical to those for U.S. securities. U.S. investors often prefer ADRs to direct purchase of foreign shares because of the ready availability of price information, lower transaction costs and timely dividend distribution, Baylor Byrnes Brackman Group

AMEX American Stock Exchange

AMEX Composite Index The American Stock Exchange introduced a new AMEX Composite Index with a new ticker symbol, XAX, on January 2, 1997. The XAX is a market capitalization-weighted, price appreciation index, and replaces the AMEX Market Value Index (XAM) which, since its inception, has been calculated on a total return basis to include the reinvestment of dividends paid by AMEX companies. The new AMEX Composite Index is more comparable with other major indexes, which reflect only the price appreciation of their respective components.

Annual report The formal report on a company's finances and operations sent to all owners of shares in the company. It discloses the company's business activity during the year.

Annuity A type of investment contract that pays you regular income, usually after retirement.

Arrears Money that was not paid when it was due, and which is still owing. Most commonly referred to in the context of dividends.

Ask The price at which someone who owns a security offers to sell it; also known as the asked price. (See also Best Ask)

Assets Baylor Byrnes Brackman Group everything you, or a company, owns or are owed. Any possessions that have value in an exchange.

Assignment The receipt of an exercise notice by an options writer that requires him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.

Averages and Indexes Statistics that are used to measure the state of the stock market or the economy. They are based on the performance of selected stocks or other indicators, such as the Dow Jones Industrial Average and the TSE 300 Composite Index.

Average Maturity The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.

Basis point One-hundredth of a percentage point (0.01%).

Bear Someone who expects that the market in general, or the price of a specific investment, will go down.

Bear market A weak market where prices are falling.

Bearer security Any investment which does not have the owner's name listed on it or in the records of the company that issued it. Baylor Byrnes Brackman Group a bearer security may be sold or cashed in by the person who holds it.

Beneficiary The person (or in some cases the estate) named to receive the value of an insurance policy, trusteed account or investment account.

Benefit The money an insurance company pays when you make a claim for something covered by an insurance policy.

Beta Measure of a stock's risk in relation to the market. 0.7 means a stock price is likely to move up or down 70% of the market change; 1.3 means the stock is likely to move up or down 30% more than the market

Bid The price a prospective buyer is prepared to pay at a particular time for trading a unit of a given security. (See also Best Bid)

Breakout A rise in a security's price above a resistance level (commonly its previous high price) or drop below a level of support (commonly the former lowest price.) A breakout is taken to signify a continuing move in the same direction. Can be used by technical analysts as a buy or sell indication.

Bid and ask quotations Bid is the highest price a buyer will pay for a share or other type of investment. Ask is the lowest price the person selling the share will accept. Together they are referred to as a quotation or quote.

Blue chip A leading, well-known company's stock from which you could expect consistent growth and dividend payments over the long term.

Board lot A standard trading amount, usually 100 shares, which has been agreed upon by stock exchanges.

Bond A certificate you receive for a loan you make to a company or government. In return, the issuer of the bond promises to pay you interest at a set rate and to repay the loan on a set date.

Book value For an individual investor, book value is the amount you originally invested plus any interest or dividends you earned that have been reinvested.

Bull Someone who expects that the market in general, or the price of a particular investment, will go up.

Bull market A strong market where values are rising.

Business day Any day when most businesses and government offices are open for business. A calendar day is any day of the year.

Callable An investment, such as a bond, that can be 'called in' and repaid by the company or government that issued it, before it would normally be due. You are generally paid extra interest if your investment is called in early.

Capital gain or loss The profit or loss you make when you sell an investment. Tax consequences may result.

Certificate The document showing that you own a bond, stock, or other investment.

CFP Certified Financial Planner

Commission The fee you pay for buying or selling investments.

Common share An investment that gives you part ownership of a company and allows you to vote on major decisions affecting the company.

Compound interest Interest paid on your initial investment, and then also on the interest as it builds up. Over a period of several years, compounding can have a dramatic effect in making your investment grow.

Confirmation A printed notice sent to you to confirm you have bought or sold an investment.

Convertible A type of investment, usually a bond, debenture or preferred share, which you may exchange for common shares usually of the same company, at a set price and usually by a set date. The company may force you to exchange if the price of its common shares goes above the value of your preferred shares.

Coupon The part of a bond which you can present at a bank to receive specified interest payments after the due date.

Cum dividend When you buy a share cum dividend it means you will receive an upcoming dividend that has already been announced. If you are not eligible to receive the dividend, the share is said to be ex dividend.

Cyclical share A share which is particularly sensitive to changes in economic conditions. Baylor Byrnes Brackman Group.

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