Finance Dictionary ( daily finance terms and concepts will be added and discussed)

Change
This shows the change in price of a security from the previous day's closing price.* For instance, -1 1/8 means the security has fallen $1.12.
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Closed-end fund
A closed-end fund sells a fixed number of shares to investors.* Those shares sell on an exchange and vary in price, depending on demand for the fund.* A fund's shares, for example, can trade below their net asset value or above their net asset value - depending on investors' demand for the shares.* Country funds that represent shares in a specific country or region, such as Italy or France, are often closed-end funds.
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Common shares
These are securities that represent equity ownership in a company.* Common shares let an investor vote on such matters as the election of directors.* They also give the holder a share in a company's profit via dividend payments or the capital appreciation of the security.
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Consumer Price Index
The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the pace of U.S. inflation.* Department of Labor publishes the CPI every month.
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Current Yield
If a security has a dividend, the yield is the price of a stock dividend.* A $10 stock that pays a 50 cent dividend for the year has a 5% yield.
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Discount rate

This is the interest rate charged by the U.S. Federal Reserve, the nation's central bank, for loans to member banks.* The Fed, as it is called, alters rates to increase or decrease the growth of the nation's economic output.
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Distribution
This is another way of saying: professional selling.* A stock is under distribution when volume expands on days when price moves down.
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Dividend
A dividend is a portion of a company's profit paid to common and preferred shareholders.* A stock selling for $20 a share with an annual dividend of $1 a share yields the investor 5 percent.
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Dow Jones Industrial Average
This is the best known U.S. index of stocks.* It contains 30 stocks that trade on the New York Stock Exchange.* The Dow, as it is called, is a barometer of how shares of the largest U.S. companies are performing.* There are thousands of investment indexes around the world for stocks, bonds, currencies and commodities.






















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Duration

A measure of a bond price's sensitivity to a 100-basis point change in interest rates.* A duration of 8 would mean that, given a 100-basis point change up/down in rates, a bond's price would move up/down by 8%.*












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Earnings per share
EPS, as it is called, is a company's profit dividend by its number of shares.* If a company earned $2 million in one year and had 2 million shares of stock outstanding, its EPS would be $1 per share.
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Eurodollar
This is an American dollar that has been deposited in a European bank.* It got there as a result of payments made to overseas companies for merchandise.
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Ex-dividend


This literally means "without dividend."* The buyer of shares when they are quoted ex-dividend is not entitled to receive a declared dividend.




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EDGAR
The Securities & Exchange Commission uses Electronic Data Gathering and Retrieval to transmit company documents to investors.* Those documents, which are available via DBC's Smart Edgar service, include 10-Qs (quarterly reports), 8-Ks (significant developments such as the sale of a company unit) and 13-Ds (disclosures by parties who own 5% or more of a company's shares).*
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