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.

Investment glossary terms beginning with the letter I:

IMF -  The IMF, or International Monetary Fund, is an organization that was created in 1944 to assist developing countries with financing and monetary policy by making loans directly to developing nations. The IMF also monitors foreign exchange systems for fairness and works with countries to lower trade barriers.

Investment glossary terms beginning with the letter J:

Joint Bond- A bond guaranteed by two or more guarantors or obligors, one of which is the issuer of the bond. In the event of a default, the bond holders can call upon the assets of any and all of the obligors to satisfy payment to the bond holders.

Investment glossary terms beginning with the letter K:

Keogh Plan – A Keogh Plan is a qualified tax-deferred retirement plan for sole proprietors and unincorporated businesses. Keogh Plans are often referred to self-employed pension plans.

Key Person Insurance – Also referred to as business life insurance, key person insurance is a life insurance policy taken out by a company on the life of a key executive of the company. The company is generally the owner and beneficiary of the life insurance policy.

Investment glossary terms beginning with the letter L:

Leading Indicator – Specific changes in economic activity that occur before the economy recognizes the changes. Leading indicators point, or indicate, the future movement of the overall economy. Examples of leading indicators include unemployment insurance claims, stock prices and stock market index averages, money supply, building permits and inventory levels.

Investment glossary terms beginning with the letter M:

Market Capitalization – Also known as MCAP, market capitalization is the total aggregate value of a company’s stock. Market capitalization is calculated by multiplying a company’s total outstanding shares of stock by the current share price. For example, a company with 10 million outstanding shares that are currently selling at $5 per share would have a market capitalization of $50 million (10,000,000 x 5.00). In General, U.S. investors recognize three market cap divisions. The three market cap divisions are large cap (MCAP of $5 Billion +), mid cap (MCAP of $1 – $5 Billion) and small cap (MCAP of less than $1 Billion).

Investment glossary terms beginning with the letter N:

New York Stock Exchange (NYSE) – Located on Wall Street in New York City, the New York Stock Exchange is the oldest and largest stock exchange in the United States. With more than 2,000 common and preferred stocks traded on the NYSE, it is often referred to as the Big Board.

Investment glossary terms beginning with the letter O:

Odd Lot – Often referred to as a broken lot or uneven lot, on odd lot generally refers to less than 100 shares of stock or less than 10 shares of a thinly traded stock. Many stock brokerages charge higher commissions on trades involving odd lots.

Investment glossary terms beginning with the letter P:

Paid-in-Capital – Also commonly called contributed capital, paid-in-capital is the capital received from investors for stock plus any additional paid-in-capital.