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Investor: A security buyer interested in protection of principal and reliability of income and to less degree, capital gains.
Investment Trust: A company whose business it is to
invest in other companies; most commonly, a mutual
fund.
Legal List: A list of securities (in any state) which
qualify as legal investments for savings banks and
trust funds in that state.
Leverage: The use of other people's money to multiply
the buying or earning power of your own.
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Liabilities: All claims against a corporation. Lien: A legal claim against property pledged to secure a loan.
Listed Stock: A stock listed on a stock exchange. Long: Owning specific securities.
Management: The board of directors and the actual operating officials of a company elected by it. Margin: Buying a security by providing some of the funds needed and borrowing the rest.
Market Price: The last reported sale price of a given security.
MIP: Monthly investment plan for buying listed stocks with minimum payments of $40 a month. Mortgage: A lien on property to assure repayment of money borrowed.
Mutual Fund: A closed-end investment trust. N AS D: National Association of Securities Dealers, regulating and policing the trading in over-the-counter securities.
New Issue: A corporate security offered to the public for the first time.
No Par: A security without stated or nominal value. Not a New Issue: Securities not being offered for account of issuer.
Odd Lot: An amount of stock traded in less than the standard unit (usually 100 shares).
Over-the-counter: A market for securities which are usually not listed on any exchange; used interchangeably with "unlisted market."
Paper profit: Unrealized capital gain on a security holding.
Par: The face amount of a bond, or the value in dollars (or cents) assigned to an equity security by the company's charter.
Point: Usually a change of $1 in the price of a stock and $10 in the price of a bond.
Preferred Stock: A class of equity entitled to divi-
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dends before common stock; and to a certain amount in liquidation ahead of any distribution to common stockholders.
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