DESCRIPTION OF SECURITY TYPES             RELEASE 2.11              PAGE 1 OF 4

The security types are used by the programs to control logic flow and calcula-
tions, and to select captions on reports.  Specification of a security type is
required for addition of a security to the catalog.  WARNING: Once entered, the
security type cannot be changed!  Any or all security types may exist in the
catalog or in any portfolio.  Explanation of the available types follows:

CASH/MISC. - for cash account; savings account, certificate of deposit (CD) or
    other time deposit; or money market fund in which the share value is always
    $1.00.  This security type can also be used for cash value of life insur-
    ance, annuity, discount or premium on bonds, accrued interest, etc.

MARG.ACCT. - for a broker margin account.  Normally, it will have a negative
    balance.  A later version of the Portfolio Analyzer will compute margin
    requirements and available funds.

COMM.PAPER - for commercial paper, notes receivable and other similar types of
    securities. For proper operation any discount or premium should be treated
    as a separate security entry of type CASH/MISC.  (Note that government
    securities should usually be of the type MONEY MARKET, described later).


DESCRIPTION OF SECURITY TYPES                                       PAGE 2 OF 4

The main thing that distinguishes CASH/MISC., MARG.ACCT., and COMM.PAPER is
that you enter the BALANCE of the account as of a specified date, rather than
the amount of a transaction.  The Personal Portfolio Analyzer is designed to
maintain an inventory of securities (by tax lot), rather than to serve as an
accounting system.  It is suggested that you enter the balances of cash or
cash-equivalent accounts as of the end of each month, or other dates for which
you want to produce reports.  You can have as many entries as you need; the
report functions will automatically select the correct balances according to
the "as of" report date.

For all other security types, described on the next screen pages, you enter the
amount of the purchase transaction (what you paid for that security purchase on
that day, i.e. a tax lot).

For the types CASH/MISC., MARG.ACCT., and COMM.PAPER the expected income is
calculated as a percentage of the dollar account balance.  There are no shares
or other units.  Market value is assumed to be the same as account balance.

NOTE: Use the type MONEY MKT. for T-bills, Treasury notes and government bonds.


DESCRIPTION OF SECURITY TYPES                                       PAGE 3 OF 4

MONEY MKT. - for a moneymarket fund in which the market value may not be the
    same as the account balance.  Also, this security type is intended for gov-
    ernment securities (Treasury notes, T-bills and government bonds).

    NOTE:  It will be easier to classify a money market fund as a CASH ACCT. if
    the share value is always $1.00.  Example: the Franklin Money Fund.

MUNI. BOND - for municipal bonds.  Interest on these may or may not be tax-
    empt.  Consult your broker and/or tax advisor.  Under the new "tax reform"
    not all municipal bonds are tax-free!

CORP. BOND - for corporate bonds such as those issued by IBM, AT&T, etc.
    Usually the interest on these is taxable to individual investors.  Many
    trusts make use of corporate bonds.  They are traded on exchanges and have
    ticker symbols - have your broker give you a bond guide.

For the above three security types, a "unit" is $100 of face value.  Interest
is computed by multiplying the number of units by the rate per unit.  Market
values are usually higher or lower than face values.  The difference is known
as premium or discount.

DESCRIPTION OF SECURITY TYPES                                       PAGE 4 OF 4

PFD. STOCK - for preferred stocks.

COM. STOCK - for common stocks.

MUTUALFUND - for mutual funds of most types, regardless of what they invest in,
    except for money market funds. (Use CASH ACCT. for most money market funds)

For the above three security types, a "unit" is one share.  Dividends are com-
puted by multiplying the rate per share by the number of shares.

ST.WARRANT - for stock warrants.
CALLOPTION - for call options and other contracts to buy in the future.
PUT OPTION - for put options and other contracts to sell in the future.
PREC.METAL - for precious metals, such as gold bars, rare coins, etc.  Not in-
             tended for futures contracts.  For gold or platimum, show units
             of 1/10 oz. (in case the price ever gets to 1000!).

For the above four security types, income is not computed.  You can enter unit
prices to compute market values for all security types on this and the previous
screen page.
