Jerry White - Canadian dictionary of finance and investment terms

Cover

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Jerry White

M.A., Econ., M.B.A., D.Litt.
Chairman, J. White & Associates Inc. & Nework Corp.

John Downes

Editor, Beating the Dow
Former Vice President, AVCO Financial Services, Inc.
Office for Economic Development, City of New York

Jordan Elliot Goodman

Financial Analyst, NBC News at Sunrise
Author, Everyone's Money Book
Creator, The Money Answers Program
Former Wall Street Correspondent,
MONEY Magazine, Time Warner Incorporated
Former Business News Commentator,
Mutual Broadcasting System

Second Edition

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Copyright 2000 by Barron's Educational Series, Inc.
Prior edition 1995 by Barron's Educational Series, Inc.

All rights reserved.
No part of this book may be reproduced in any form, by photostat, microfilm, xerography, or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the copyright owner.

All inquiries should be addressed to:
Barron's Educational Series, Inc.
250 Wireless Boulevard
Hauppauge, NY 11788
http://www.barronseduc.com

Library of Congress Catalog Card No. 00-036294

International Standard Book No. 0-7641-1261-9

Library of Congress Cataloging-in-Publication Data

PRINTED IN THE UNITED STATES OF AMERICA

9 8 7 6 5 4 3 2 1

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In this new millennium, the quest is for knowledge as well as information. A recent survey of consumers/investors shows that male investors seek information on how to make better informed decisions, while female investors wanted education on how to make better decisions.

The E-commerce and Internet revolution has democratized capitalism, allowing the consumer equal access to corporate information as well as investment options and services. Today, any consumer with investable dollars can access the services that in the sixties and seventies were available only to the very rich.

With the explosion of on-line information, there is an ever increasing level of sales in books. Perhaps, the model of high-tech-high-touch was correct. As the population ages, the demand for the bound book has made a great recovery. This volume is a prime example of the value of the printed word as a reference and educational source accessible to all.

A reader wrote to us to compliment us on the first Canadian edition. He said that while he was in his late fifties, he was new as an investor and until four years ago, he found himself lost while reading newspapers, newsletters, books, and watching financial programs on television. He was unable to follow them as he did not have the background in the field and he could not grasp the terminology or concepts. His financial adviser gave him a copy of this text. He now keeps it on his nightstand for quick access, while he does his financial research. The reader said that the book empowered him to be a more knowledgeable and better-educated consumer of financial products and now he recommends it to all of his friends and even his children.

This is the key role of this book: to be a companion to you in your research and reading, and to add clarity, to simplify, and, to ultimately improve your knowledge.

We also recognize that the financial world is quite dynamic, and that the terminology and concepts must be constantly updated to reflect the here and now. Otherwise, this text would be of no strategic value.

In this second Canadian edition, we have tried to ensure that we have covered tax terminology more extensively to reflect its ever increasing incursion into our lives and its actual importance in all financial decision making.

Mutual fund terms and related concepts have also been greatly expanded and we have reviewed all regulatory sources to make sure that the most current legislation and regulatory matters have been included.

We, of course, have deleted terms that lack contemporary relevance or are in such select usage, as to be of little value today.

The text should benefit students, stockbrokers, financial planners, their clients, writers, consumer readers and researchers.

Extensive research was conducted by Ian White, Hartley White, and Mariam White in preparation of this update.

Will this new era of affluence and the inclusion economy continue? We have no idea. But the better informed and educated reader will certainly have

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an advantage over most, ensuring some participation in whatever success arises in the years ahead. That is the principal objective of this dictionary.

The authors were helped by many organizations and people, among them: The American Association of Individual Investors, American Bankers Association, American Council of Life Insurance, American Express Company, American Institute of Certified Public Accountants, American Society of CLU & CHFC (Chartered Life Underwriters), American Stock Exchange, Associated Credit Bureaus, Bankers Trust Company, The Bond Buyer, Boston Stock Exchange, Chase Manhattan Bank NA, Chicago Board Options Exchange, Coffee, Sugar & Cocoa Exchange, Commodity Futures Trading Commission, DD&W Limited, Dow Jones, Employee Benefit Research Institute, Fannie Mae, Federal Energy Regulatory Commission, Federal Reserve Bank of New York, Federal Trade Commission, FINEX, Frank Russell Company, Futures Industry Association, Goldman, Sachs & Company, Health Insurance Institute of America, Hulbert Financial Digest, IBC/Donoghue Incorporated, I/B/E/S Incorporated, Insurance Information Institute, Intermarket Management Incorporated, Internal Revenue Service, International Petroleum Exchange, International Swaps and Derivatives Association, Investment Management Consultants Association, Investment Program Association, J.P Morgan, Richard J. Kittrell, Esq./Kittrell & Kittrell P.C., Liquidity Financial Corporation, Mercer and Company, Merrill Lynch, Montreal Exchange, Morgan Stanley, Morningstar, Mortgage Bankers Association, Municipal Bond Investors Assurance Corporation, National Association of Investors Corporation, National Association of Real Estate Investment Trusts, National Association of Variable Annuities, National Credit Union Administration, New York Cotton Exchange, New York Life Insurance Company, New York Mercantile Exchange, New York Stock Exchange, Office of Thrift Supervision, Options Clearing Corporation, Options Institute, Pension Benefit Guaranty Corporation, Prudential Securities, Salomon Brothers Incorporated, Securities and Exchange Commission, Standard & Poor's, Toronto Stock Exchange, Trimedia Incorporated, U.S. Department of Commerce, U.S. Department of Labor, Value Line, Vancouver Stock Exchange, Visa International, The Weiser Walek Group, Wheat First Butcher Singer Incorporated, Wilshire Associates, Winnipeg Commodity Exchange, World Gold Council, Wrap Industry Association, and Zacks Investment Research.