Glossary of Common Investment Terms

Accrued interest: Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security

Advisor: The person or company responsible for making investments on behalf of, and/or providing advice to investors.

Affiliate: An inter-company relationship where one company owns less than a majority of shares in the other company.

Agent: An individual or firm that places securities transactions for clients.

Allotment: This is the number of shares allocated to each participating underwriting firm during the Initial Public Offer (IPO) that they are allowed to sell.

Analyst: A financial professional who has expertise in evaluating investments and puts together "buy", "sell" and "hold" recommendations for securities. Also known as a "financial analyst" or a "security analyst".

Annual Rate of Return: The annual rate of gain or loss on an investment expressed as a percentage.

Applicant Company: the company wishing to list on MSM or issuing o the public or applying to list or issue to the public

Appreciation: An increase in the value of an investment.

Ask (offer): The price at which the seller is willing to sell a security. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.

Asset Allocation: The diversification of investments among several asset classes.

Asset Class: A category of investments, such as shares, bonds, or cash equivalents.

Asset: Anything having commercial or exchange value that is owned by an individual, institution, or business.

Authorized Member: A person sanctioned by MSM to carry on any business dealings with MSM

Bankruptcy: Inability to pay debts.

Beta: The measure of an asset'srisk in relation to the market or to an alternative benchmark

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