Lender or creditorperson (or institution) who invests the money or makes the funds available

Borrower or debtor person (or institution) who owes the money or avails of the funds from the lender
Origin or loan date date on which money is received by the borrower
Repayment date or maturity date date on which the money borrowed or loan is to be completely
repaid
Time or term (t) amount of time in years the money is borrowed or invested; length
of time between the origin and maturity dates
Principal (P) amount of money borrowed or invested on the origin date
Rate(r) annual rate, usually in percent, charged by the lender, or rate of increase of the investment
Interest (I) amount paid or earned for the use of money
Simple Interest (Is) interest that is computed on the principal and then added to it
Compound Interest (Ic)interest is computed on the principal and also on the accumulated past
interests
Maturity value or future value (F) amount after t years that the lender receives from the borrower on
the maturity date
Frequency of conversion (m) number of conversion periods in one year
Conversion or interest period time between successive conversions of interest
Equivalent rates two annual rates with different conversion periods that will earn
the same maturity value for the same time/term
Nominal rate annual interest rate (may be compounded more than once a year)
Effective rate rate when compounded annually will give the same compound each year with the
nominal rate; denoted by i(1)
ANNUITY a sequence of payments made at equal(fixed) intervals or periods of time
General Annuityan annuity where the length of the payment interval is not the same as the length of
the interest compounding period
General Ordinary Annuity a general annuity in which the periodic payment is made at the end of the
payment interval
Deferred Annuity an annuity that does not begin until a given time interval has passed
Period of Deferral time between the purchase of an annuity and the start of the payments for the
deferred annuity
Bond interest-bearing security which promises to pay (1) a stated amount of money on the maturity
date, and (2) regular interest payments called coupons.
Coupon periodic interest payment that the bondholder receives during the time between purchase
date and maturity date; usually received semiannually
Coupon Rate the rate per coupon payment period; denoted by r
Price of a Bond the price of the bond at purchase time; denoted by P
Par Value or Face Value the amount payable on the maturity date; denoted by F.
Term of a Bond fixed period of time (in years) at which the bond is redeemable as stated in the bond
certificate; number of years from time of purchase to maturity date.
Fair Price of a Bond present value of all cash inflows to the bondholder.
Val value of the index
Chg change of the index value from the previous trading day (i.e., value today minus value yesterday)
%Chg ratio of Chg to Val (i.e., Chg divided by Val)
52-WK HI/LO highest/ lowest selling price of the stock in the past 52 weeks
HI/LO highest/ lowest selling price of the stock in the last trading day
STOCK three-letter symbol the company is using for trading
DIV dividend per share last year
VOL (100s) number of shares (in hundreds) traded in the last trading day. In this
case, stock AAA sold 2,050 shares of 100 which is equal to 20,500 shares.
CLOSE- closing price on the last trading day.
NETCHG- net change between the two last trading days. In the case of AAA, the net
change is 0.10. The closing price the day before the last trading day is P57.29 P0.10 = P57.19.
Fundamental Analysisanalysis of various public information (e.g., sales, profits) about a stock
Technical Analysis analysis of patterns in historical prices of a stock Weak Form of Efficient Market
Theory asserts that stock prices already incorporate all past market trading data and information
(historical price information) only Semistrong Form of Efficient Market
Theory asserts that stock prices already incorporate all publicly available information only Strong Form
of Efficient Market
Theory asserts that stock prices already incorporate all information (public and private)
A sound argument is a valid argument which also satisfies the truth condition. An argument which does
not satisfy either the validity condition or the truth condition is called a bad argument