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Individual Retirement Account Abbreviated IRA. A retirement investing tool for employed individuals that allows for an annual contribution of 100% of earned income up to a maximum of $2,000. Some or all of the contribution may be deductible from current taxes, depending on the individual’s...

Indicated Yield The yield that a share of stock would return based on its current Indicated Dividend, calculated by dividing the indicated dividend by the current share price

Indicated Dividend The total dividends that would be paid on a share of stock in the next twelve months, provided that each dividend is the same amount as the latest payment.

Index Fund A collective fund that attempts to replicate the movements and characteristics of the Index of a certain financial market. There are many methods of replication, like holding securities in the same proportion as the index.

Index A statistical measure of the changes in a portfolio representing a market. The Standard & Poor’s 500 is the most well-known index, which measures the overall change in the value of the 500 stocks of the largest firms in the U.S.

Income Statement Also Known as the Earnings Report. The portion of a financial report showing income and expenses, and comparing them the same period last year.

Income Fund A mutual fund that seeks to provide stable current income by investing in securities that pay interest or dividends.

Implied Return The sum of implied internal growth plus the projected average Dividend Yield

Implied Growth The future growth rate for earnings, implied by the company’s average Return On Equity and Return On Earnings retention rates.

Holding Period Return/Yield Income plus price appreciation during a specified time period divided by the cost of the investment.

High Yield The highest Dividend Yield for a particular year. It is useful to measure the current dividend yield against the historical high yield. If the current yield is lower, then there may be room for an increase in dividend to bring the yield closer to the former high

High PE The highest Price-Earnings Ratio at which the stock sold during a year.

Held A situation where a security is temporarily not available for trading (e.g. Market Makers are not allowed to display quotes).

Hedge An investment made in order to reduce the risk of adverse price movements in a security. Normally, a hedge consists of a protecting position in a related security.

Guaranteed Investment (Interest) Contract Abbreviated GIC. Debt instrument sold in large denominations often bought for retirement plans. The word guaranteed refers to the interest rate paid on the GIC; the principal is at risk.

Growth Stock A company with excellent prospects for above-average future increases (or growth) for sales, earnings, and price. Look for a company that is a leader in its industry.

Growth Rates The compounded annualized rate of growth of a company’s Revenues, Earnings, Dividends, or another figure.

Growth Fund A diversified common stock fund that has capital appreciation as its primary goal. It invests in companies that reinvest most of their earnings for expansion, research, or development.

Gross Domestic Product Abbreviated GDP. A measure of output from United States factories and related consumption in the United States. It includes consumption, government purchases, investments, and exports minus imports. It does not include products made by U.S. companies in foreign markets.

Government Security A debt obligation of the U.S. government, backed by its full faith, credit and taxing power, and regarded as having no risk of default. The government issues short-term Treasury Bills, medium-term Treasury notes, and long-term Treasury bonds.