After a roller coaster day of trading, the Dow Jones Industrial Average managed to claw back above 10,000 at the end of trading on Friday. At one point during the day, the DJIA fell below 9,900. Investors appear worried about the strength of the economic recovery as well as debt trouble in Europe. The rebound that occurred late in day was most likely a result of bargain hunting by investors who were looking for good buys in sectors that have been under pressure over the past few days.

The Dow was up 10.05 points for the day closing at 10,012.23 – an increase of .1 percent. However, the Dow Jones Industrial Average was down nearly .5 percent for the week and with 4 straight weekly declines is down about 6 percent from its high this year. The NASDAQ finished up 15.69 to close at 2,141.12, an increase of about .75 percent. The S&P 500 also sported a gain for the day moving up 3.08 to close at 1,066.19.

Early in the morning, investors were anxious for the latest reading on jobs and unemployment. The government report showed a loss of 20,000 jobs, but also showed a drop in the unemployment rate to 9.7 percent. The drop in the unemployment rate could be attributed to an increase in discouraged job seekers who have given up looking for work. The employment report was not in line with economists expectations, who were expecting an increase of roughly 5,000 jobs along with an increase in the unemployment rate to 10.1 percent.

Investors are uncertain which direction the market will move in the coming weeks. Fear among investors, as measured by the CBOE volatility index or VIX, spiked today to 29 but eventually retreated and settled around 26. Many investors are expecting a roller coaster ride in the stock market over the coming weeks and are looking to earnings reports, retail sales and weekly jobless claims, as well as the consumer sentiment reading late next week.

Investment glossary terms beginning with numbers:

1031 Exchange – Under Section 1031 of the U.S. Internal Revenue Code, the exchange of certain like-kind properties may allow for deferred recognition of capital gains or losses that are realized at the time of the exchange or sale. The deferral of gain recognition results in a deferral of any capital gains taxes that would otherwise be due. To qualify for a 1031 exchange, the properties exchanged must be held for investment or for productive use in a business or trade. Real property, whether improved or unimproved, generally qualifies under section 1031, whereas stocks and bonds are expressly excluded.

Investment glossary terms beginning with the letter A:

Adjustable Rate Mortgage (ARM)- A mortgage that typically has a short-term fixed interest rate for a specified period of time, after which the interest rate changes to bring the rate the mortgage holder pays in line with market rates. The interest rate is generally based on the prime rate, Treasury bill rate or LIBOR. ARMs typically have a “ceiling” on the interest rate to protect the mortgage holder. Additionally, due to the interest rate risk to the mortgage holder, ARMs generally start with lower initial interest rates than fixed rate mortgages.

Investment glossary terms beginning with the letter B:

Big Uglies – Old industrial companies in gritty industries such as mining, steel and oil. These stocks provide solid long term earnings, growth and dividends and are  sought by value investors who want bargain priced stocks with a low P/E ratio.

Investment glossary terms beginning with the letter C:

Cash Dividend – A dividend declared and paid by a company in the form of cash. Cash dividends generally are sent by check or are directly deposited into your investment account with your stock broker.

Investment glossary terms beginning with the letter D:

Daily High – The highest price that a security, commodity or index reaches during any given day.

Daily Low – The lowest price that a security, commodity or index reaches during any given day.

Investment glossary terms beginning the letter E:

EAFE Index – A market-value weighted stock market index created by Morgan Stanley to track the markets in Europe, Australasia and the Far East. The EAFE Index is designed to give a measure of overseas stock markets.

Investment glossary terms beginning with the letter F:

Factoring – A financial service provided by a financier, or factor, where a business sells its accounts receivable at a discount in exchange for immediate payment. The factor collects his fee upon collecting from the debtor. Factoring transactions are entered into under either a recourse or non-recourse arrangement. Factoring with recourse leaves the credit and collection risk with the business selling the receivable, whereas factoring without recourse transfers the credit and collection risk entirely to the factor. Factoring is used by businesses as a tool to speed up cash flow to help reduce the need for debt or equity financing.

Fair Market Value – An agreeable open-market price paid by a willing but not desperate buyer to an interested but not desperate seller, assuming there is sufficient time for an agreement to be reached.

Investment glossary terms beginning with the letter G:

GAAP- GAAP, or Generally Accepted Accounting Principles, is the accepted set of accounting standards adopted by the Financial Accounting Standards Board (FASB) that outlines the standards, procedures, rules and conventions for reporting financial information. Most publicly traded companies are required to follow GAAP when reporting their quarterly results and in preparing their annual report and CPAs perform audits on these companies to ensure compliance with GAAP.

Investment glossary terms beginning with the letter H:

Hang Seng Index – The Hang Seng Index is a free floating or market-value weighted stock market index based in Hong Kong, China. The Hang Seng Index tracks the performance and stock price of 45 companies on the Hong Kong stock exchange. The Hang Seng Index is similar to the Dow Jones Industrial Average in the U.S.