APFinancial investment products

Nominal cash flow
A cash flow expressed in nominalterms if the actual dollars to be received or paid out are given.

Nominal dollars
Dollars that are not adjusted for inflation.

Nominal exchange rate
The actual foreign exchangequotation in contrast to the realexchange rate, which has been adjusted for changes in purchasing power.

Nominal exercise price
The exercise price of a GNMAoptioncontract, which equals the unpaid principal balance multiplied by the adjusted exercise price.

APFinancial Investments

Qualified opinion
An auditor's opinion expressing certain limitations of an audit.

Qualified plan or trust
A tax-deferred plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment. Tax is paid only when amounts are drawn from the trust.

Qualified retirement plan
A retirement plan established by employers for their employees that meets the requirements of Internal Revenue Code Section 401(a) or 403(a) and is eligible for special tax considerations. The plan may provide for employer contributions, as in a pension or profit-sharing plan, as well as employee contributions. Employers can deduct plan contributions made on behalf of eligible employees on the business's tax return as business expenses. Plan earnings are not taxed to the employee until withdrawn.

APFinancial traditional bank instruments

APFinancial growth rate: Circle
Underwriters, actual or potential, often seek out and "circle" investor interest in a new issue before final pricing. The customer circled has basically made a commitment to purchase the issue if it is available at an agreed-upon price. If the actual price is other than that stipulated, the customer supposedly has first offer at the actual price.

Circuit breakers
Measures instituted by exchanges to stop trading temporarily when the market has fallen by a certain percentage in a specified period. They are intended to prevent a market free fall by permitting buy and sell orders to rebalance.

Circus swap
A fixed-rate currency swap against floating US dollar LIBOR payments. An acronym that stands for Combined Interest Rate and CUrrency Swap.

Citizen bonds
Certificateless municipals that can be registered on stock exchanges and are listed in newspapers.

City code on takeovers and mergers
See: Dawn raid
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Quantitative research
Use of advanced econometric and mathematical valuation models to identify the firms with the best possible prospectives. Antithesis of qualitative research.

Quanto swap
See: Differential swap

Quantos
Currency options with a guaranteed exchange rate that enable buyers who like an asset, German bonds for example, but not the asset's pricing currency, to arrange payment in a different currency for a fee.

APFinancial Work places
APFinancial a wide variety of investment: Big Bang
The term applied to the liberalization in 1986 of the London Stock Exchange (LSE) when trading was automated.

Big Board
A nickname for the New York Stock Exchange (NYSE). Also known as The Exchange. More than 2,000 common and preferred stocks are traded. Founded in 1792, the NYSE is the oldest exchange in the United States, and the largest. It is located on Wall Street in New York City.

APFinancial Job Offers

Stripped bond
Bond that can be subdivided into a series of zero-coupon bonds.

Stripped mortgage-backed securities (SMBS)
Securities that redistribute the cash flows from the underlying generic MBScollateral into the principal and interest components of the MBS to enhance their attractiveness to different groups of investors.

Stripped yield
Applies mainly to convertible securities. Return on the debt portion of a bond/warrantunit after subtracting the value of the issued warrant segment.

Strong Currency
A currency whose value compared to other currencies is improving, as indicated by a decrease in the direct exchange rates for the currency.

APFinancial Asociates

Contract month
The month in which futures contracts may be satisfied by making or accepting a delivery.

Contractual Claim
An amount that by legal agreement must be paid periodically to the buyer of a security; contractual claim may also specify the time at which the principal must be repaid and other details.

APFinancial Comprehensive Proposals

Conversion Period
The time period during which an investor can exchange a convertible security for common stock.

Conversion premium
The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued. In general usage, the conversion premium is the amount by which the convertible security trades above its conversted value. For example, if a $1,000 par bond is trading at $1,100, it is convertible into 50 shares, and the shares are trading at $21, the converted value is 50 X 20.50 = $1,025, and the conversion premium is $75.

Conversion price
Applies mainly to convertible securities. Dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock, as specified when the convertible is issued.

Conversion ratio
Applies mainly to convertible securities. Relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred stock when a conversion takes place. It is determined at the time of issue and is expressed either as a ratio or as a conversion price from which the ratio can be figured by dividing the par value of the convertible by the conversion price.

APFinancial mutual funds

APFinancial Comprehensive Proposals: Price support
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.

Price takers
Individuals who respond to rates and prices by acting as though prices have no influence on them.

Price uncertainty
Chance that the future price of an asset will change.

Price value of a basis point (PVBP)
Also called the dollar value of a basis point; a measure of the change in the price of a bond if the required yield changes by one basis point.

Price-volume relationship
A relationship espoused by some technical analysts that signals continuing rises or falls in securityprices that are related to changes in volume traded.
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APFinancial Seminars & Workshops

Pulling in their horns
Investors selling off positions after a stock or bondmarket has increased sharply or setting up hedgingpositions to guard against a negative turn of the market.

Purchase
Buy; be long; have an ownership position.

APFinancial Representatives
APFinancial a wide variety of investment: Capitalization method
A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stockindex in proportion to their capitalization.

Capitalization rate
The interest rate used to calculate the present value of a number of future payments.

Capitalization ratios
Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.

Capitalization table
A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source - long-termdebt and common equity - and the respective capitalization ratios.

APFinancial Contact

Capitalization-Weighted Index
A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. See also Float, Divisor.

Capitalized
Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year.

Capitalized interest
Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing.

Capped-Style Option
A capped option is an option with an established profit cap or cap price. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option's cap price.

APFinancial Interests

Named perils insurance
An insurance policy that names specific risks covered by the policy.

NASD form FR-1
A form required by the NASD of foreign dealers to ensure that firms participating in a new distribution of securities make a bona fide public offering.

Narrow-Based
Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based.

APFinancial growth rate

Replacement cost
Cost to replace a firm'sassets.

Replacement cost accounting
An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.

Replacement cost insurance
Insurance that pays out the full amount required to replace damaged property with new property, without taking into account the depreciated value of the property.

APFinancial Net

APFinancial Investments: Unlimited tax bond
A municipal bond secured by the pledge to levy taxes until full repayment at an unlimited rate.

Unlisted security
A securitytraded in the over-the-counter market that is not listed on an orgainzed exchange.

Unlisted trading
Trading in unlisted securities that occurs on an organized exchange to accommodate members. This practice is not permitted at the NYSE.

Unloading
Selling securities or commodities whose prices are dropping to minimize loss.
APFinancial a wide variety of investment
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APFinancial mutual funds

In 2002, AP Financial, Inc. opened its doors with three people and three office locations. Over years and hard work, AP Financial has experienced a phenomenal growth rate. Today AP Financial have risen to have 8 offices and over 200 people working in affiliance with the organization.

Colorado’s AP Financial Inc. Contributes to Metro Denver Habitat for Humanity

“We believe our company has grown by leaps and bounds due to our dedication to helping our clients achieve their goals,” Mr. Perrin explains. “We have concrete plans to open another office in Southern California in the next couple of months, and we want to make sure contributing to the community is highly encouraged and paid in all offices. This way we can not only help our clients, but help those less fortunate achieve their goals and make them happy as well.”

APFinancial Comprehensive Proposals
APFinancial growth rate: Obligation
A legal responsibility, such as to repay a debt.

Obligation bond
A municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for costs exceeding the mortgage value.

Obligor
A person who has an obligation to pay off a debt.

Observational Noise
The error between the true value in a system and its observed value due to imprecision in measurement. Also called Measurement Noise. See: Dynamical Noise.

APFinancial investment companies

Support level
A price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a security tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past.

Surcharge
An additional levy added to some charge.

Surety
An individual or corporation that guarantees the performance or actions of another.

Surplus funds
Cash flow available after payment of taxes in a project.

APFinancial Interests

Quotation
Highest bid and lowest offer (asked) price currently available on a security or a commodity.

Quotation board
The electronic board at a brokerage firm displaying prices other financial data.

Quote rule
Rule requiring market makers to publish quotations for any listed security when a quotation represents more than 1% of the aggregatetrading volume for that security.

Quoted price
The price at which the last trade of a particular security or commodity took place.

Radar alert
Close monitoring of trading patterns in a company's stock by senior managers to uncover unusual buying activity that might signal a takeover attempt. See: Shark watcher.

APFinancial Seminars & Workshops

Revisionary trust
An irrevocable trust that becomes a revocable trust after a certain amount of time.

Revocable letter of credit
Assurance of funds issued by a bank that can be canceled at any time without prior notification to the beneficiary.

Revocable trust
A trust that may altered as many times as desired in which income-producing property passes directly to the beneficiaries at the time of the grantor's death. Since the arrangement can be altered at any time, the assets are considered part of the grantor's estate and they are taxed as such.

Revolving credit agreement
A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period.

APFinancial investment products

: Stock index option
An option in which the underlying is a common stock index.

Stock index swap
A swap involving a stock index. The other asset involved in a stock index swap can be another stock index (a stock-for-stock swap), a debt index (a debt-for-stock swap), or any other financial asset or financial price index.

Stock insurance company
An insurance company owned by a group of stockholders, who are not necessarily policyholders.

Stock jockey
A stockbroker who frequently buys and sells shares in a client's portfolios.
APFinancial Investment
APFinancial a wide variety of investment
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Total volume
The total number of shares or contractstraded on national and regional exchanges in a stock, bond, commodity, future, or option on a certain day.

Touch, the
Mainly applies to international equities. Inside market in London terminology.
Tough on price
Firm price mentality at which one wishes to transact stock, often at a discount/premium that is not available at the time.

Tout
To promote a security in order to attract buyers.

APFinancial traditional bank instruments
APFinancial growth rate: Benchmark interest rate
Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturityoffered on the comparable-maturity treasury security that was most recently issued (on-the-run).

Benchmark issue
Also called on-the-run or current-couponissue or bellwether issue. In the secondary market, the benchmark issue is the most recently auctioned Treasury issues for each maturity.

Beneath
Used for listed equity securities. 1) Behind; 2) Lower in price.

Beneficial Owner
As used for most purposes under the federal securities laws. A beneficial owner of stock is any person or entity with sole or shared power to vote or dispose of the stock. This SEC definition is intended to include a holder who enjoys the benefits of ownership although the shares may be held in another name.

APFinancial

Subordinated
A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt.

Subordinated bonds
Securities that fall after others in priority of claims on the entity in the case of financial distress.

Subordinated debenture bond
An unsecured bond that ranks after secured debt, after debenture bonds, and often after some general creditors in its claim on assets and earnings. Related: Debenture bond, mortgage bond, collateral trust bonds.

Subordinated debt
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.

APFinancial Work places

Mortgage broker
A company or individual that places mortgageloans with lenders, but does not originate or service loans like a mortgage banker.

Mortgage duration
A modification of standard duration to account for the impact on duration of MBSs of changes in prepayment speed resulting from changes in interest rates. Two factors are employed: one that reflects the impact of changes in prepayment speed or price.

Mortgagee
The lender of a loansecured by property.

APFinancial Careers

Commission
The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a staff of analysts who follow specific industries. Discount brokers simply execute a client's order and usually do not offer an opinion on a stock. Also known as a round-turn. Commissions are known as round-turn only in futures trading, since the commission is assessed only after liquidation of the position.

Commission broker
A broker on the floor of an exchange who acts as agent for a particular brokerage house and buys and sells stocks for the brokerage house on a commission basis.

Commission house
A firm that buys and sells futures contracts for customer accounts. Related: futures commission merchant, omnibus account.

APFinancial Contact

: Options contract
A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, or on a specified date (expiration date).

Options contract multiple
A constant, set at $100, that when multiplied by the cash index value gives the dollar value of the stock indexunderlying an option. That is the dollar value of the underlying stock index = Cash index value x $100 (the options contract multiple).

Options on physicals
Interest rateoptions written on fixed income securities, as opposed to those written on futures contracts.

Or better
Used in the context of general equities. Indication on the order ticket of a limit order to buy or sell securities at a price better than the specified limit price if a better price can be obtained. Does not imply a not-held order, but rather puts more emphasis on executing at the limit if available.

Oral contract
A contract not recorded on paper or on computer, but made vocally which is usually enforceable.

Order
Instruction to a broker/dealer to buy, sell, deliver, or receive securities or commodities that commits the issuer of the "order" to the terms specified. See: indication, inquiry, bid wanted, offer wanted.
APFinancial Job Offers
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APFinancial Representatives

Marginal
Incremental.

Margin agreement
The agreement governing customers' margin accounts.

Marginal cost
The increase or decrease in a firm's total cost of production as a result of changing production by one unit.

APFinancial Asociates
APFinancial growth rate: Separate customer
Method of allocating insurance by the Securities Investor Protection Corporation. Each account that is under the name of a different person or group of people is entitled to maximum protection.

Separate tax returns
Tax returns of married persons who choose to file their returns individually, usually because this approach produces lower overall tax payments.

Separate Trading of Registered Interest and Principal Securities (STRIPS)
Long-termnotes and bonds divided into principal and interest-paying components, which may be transferred and sold in amounts as small as $1000. STRIPS are sold at auction at a minimum par amount, varying for each issue. The amount is an arithmetic function of the issue's interest rate.

APFinancial Investments

Time value permium
The amount by which an option's total premium exceeds its intrinsic value.

Times-interest-earned ratio
Earnings before interest and tax, divided by interest payments.

Time-weighted rate of return
Related: Geometric meanreturn

APFinancial growth rate

Real income
The income of an individual, group, or country adjusted for inflation.

Real interest rate
The rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation.

Real market
The bid and offer prices at which a dealer could execute the desired quantity of shares. Quotes in the brokersmarket.

Real option
An option or option-like feature embedded in a realinvestment opportunity.

APFinancial Personal

COD transaction
See: Delivery versus payment

Code of procedure
The guide of the National Association of Securities Dealers used to adjudicate complaints filed against NASD members.
Coefficient of determination
A measure of the goodness of fit of the relationship between the dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return. Also known as R-square.

Coefficient of Variation
A measure of investment risk that defines risk as the standard deviation per unit of expected return.

APFinancial

: Account statement
In the context of banking, refers to a summary of all balances.

In the context of securities, a summary of all transactions and positions (long and short) between a broker/dealer and a client. See also: Option agreement.

Accountant's opinion
A signed statement from an independent public accountant after examination of a firm's records and accounts. The opinion may be unqualified or qualified. See: Qualified opinion.
APFinancial Net
APFinancial Seminars & Workshops
APFinancial investment companies

Turnaround
Securities bought and sold for settlement on the same day. Also describes a firm that has been performing poorly, but changes its financial course and improves its performance.

Turnaround time
Time available or needed to effect a turnaround.

Turnkey construction contract
A type of construction contract under which the construction firm is obligated to complete a project according to prespecified criteria for a price that is fixed at the time the contract is signed.

APFinancial Comprehensive Proposals
APFinancial a wide variety of investment: Peak
The high point at the end of an economic expansion until the start of a contraction.

Pecking-order view (of capital structure)
The argument that external financingtransactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equityhybrids. Finally, new equity is at the least preferred source.

Pegged exchange rate
Exchange rate whose value is pegged to another currency's value or to a unit of account.

Pegging
Making transactions in a security, currency, or commodity in order to stabilize or target its value through market intervention.

APFinancial Investment

Value broker
A discountbroker whose rates are a percentage of the dollar value of each transaction.

Value date
In the market for Eurodollar deposits and foreign exchange, the delivery date of funds traded. For spot transactions, it is normally on spot transactions two days after a transaction is agreed upon. In the case of a forward foreign exchange trade, it is the future date.

Value dating
When value or credit is given for funds transferred between banks.

APFinancial Representatives

12B-1 fees
The percent of a mutual fund'sassets used to defray marketing and distributionexpenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor a 12b-1 fee.

12B-1 funds
Mutual funds that do not charge an up-front or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12B-1 (passed in 1980).

APFinancial Contact

19c3 stock
A stocklisted on a national securities exchange after April 26, 1979, that is exempt from the Securities and Exchange Commission rule that prohibits exchange members from participating in off-boardtrading.

No-action letter
A letter from the Securities and Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity.

No Adjournment
Within the text on the proxy, card are the words: "Shares will be voted at this annual meeting or at any adjournment thereof." If a securityholder strikes out this phrase, the proxy cannot be counted at any adjournment (reconvening) of the meeting.

"No Autex"
Used in the context of general equities. "No buy or sell interest should be entered into the Autex (advertising) system." Inquirers do not want exposure of an inquiry to affect the price at which they hope to ultimately transact the trade, hence disturbing the customer's picture.

No book
Used for listed equity securities. Not much, if any, stock is being bid for or offered at the present time by customers or the specialist.

APFinancial investment products

: Yield curve option-pricing models
Models that can incorporate different volatility assumptions along the yield curve, such as the Black-Derman-Toy model. Also called arbitrage-free option-pricing models.

Yield curve strategies
Investments that position a portfolio to capitalize on expected changes in the shape of the Treasuryyield curve.

Yield differential/pickup
Mainly applies to convertible securities. Graph showing the term structure of interest rates by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available.
APFinancial Investments
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Self-tender offer
A company that tenders for its own shares.
Sell the book
Used for listed equity securities. Order to a broker by the holder of a large quantity of shares of a security to sell all that can be absorbed at the current bid price. The term derives from the specialist's book - the record of all the buy and sell orders members have placed in the stock one handles. In this scenario, the buyers potentially include those in the specialist's book, the specialist for its own account, and broker-dealers.

Sell hedge
Related: short hedge.

Sell limit order
Conditional trading order that indicates that a security may be sold at the designated price or higher. Related: Buy limit order.

Sell off
Sale of securities under pressure. See: Dumping.



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