===============================================================================
                                TERMS DEFINED
===============================================================================

     10-K                                   INVENTORY
     12B-1 FEES                             IRA/KEOGH ACCOUNTS
     ALPHA                                  LAST SPLIT
     ALPHA EQUATION                         LIMIT ORDER
     AMERICAN-STYLE OPTION                  LOAD MUTUAL FUND
     ANALYST                                LONG POSITION
     ANNUAL REPORT                          LONG POSITION (OPTIONS)
     ARBITRAGE                              LONG TERM ASSETS
     ARMS INDEX                             LONG TERM DEBT
     ASSIGNMENT                             LONG TERM DEBT/CAPITALIZATION
     AT-THE-MONEY                           LONG TERM LIABILITIES
     AUTOREGRESSIVE                         LOW PRICE
     AVERAGE                                MANAGEMENT/CLOSELY HELD SHARES
     AVERAGE MATURITY                       MARGIN ACCOUNT (STOCKS)
     AVERAGE WEEKLY VOLUME                  MARGIN REQUIREMENT (OPTIONS)
     BACK OFFICE                            MARKET CAP
     BANKER'S ACCEPTANCE                    MARKET CYCLE
     BASIS                                  MARKET ORDER
     BASIS POINTS                           MINIMUM PURCHASES
     BEAR                                   MONEY MARKET FUND
     BEAR RAID                              MOVING AVERAGE
     BETA (MUTUAL FUNDS)                    MUTUAL FUND
     BETA EQUATION (MUTUAL FUNDS)           MUTUAL FUND TRACKER
     BETA (STOCKS)                          NET ASSET VALUE (NAV)
     BETA EQUATION (STOCKS)                 NET INCOME
     BLOW-OFF TOP                           NM
     BREAKOUT                               NO LOAD MUTUAL FUND
     BULL                                   NOISE
     BULL MARKET                            OBJECTIVE (MUTUAL FUNDS)
     BUYOUT                                 OPEN INTEREST
     CALL OPTION                            OPENING PURCHASE
     CAPITAL EXPENDITURES                   OPENING SALE
     CAPITAL GAIN                           OPTION
     CAPITAL LOSS                           OTHER CURRENT ASSETS
     CASH AND EQUIVALENTS                   OTHER LONG TERM LIABILITIES
     CASH DIVIDEND                          OUT-OF-THE-MONEY
     CHANGES IN FINANCIAL POSITION          OVERBOUGHT\OVERSOLD INDICATOR
     CHURNING                               PAYMENT DATE
     CLOSING PURCHASE                       PHONE SWITCHING
     CLOSING SALE                           PIVOT
     COMMISSION                             POINT AND FIGURE CHART
     COMMON STOCK/OTHER EQUITY              PREFERRED STOCK
     CONFIDENCE INDICATOR                   PREMIUM
     CONFIDENCE LEVEL                       PRICE/BOOK RATIO
     CONFIRMATION                           PRICE/EARNINGS RATIO
     CONVERGENCE                            P/E RATIO
     CORNER A MARKET                        PRICE/SALES RATIO
     COUPON RATE                            PRICES
     COVERED CALL                           PRIMARY MARKET
     COVERED PUT                            PROFIT MARGIN
     CURRENT ASSETS                         PROGRAM TRADING
     CURRENT LIABILITIES                    PROSPECTUS
     CURRENT RATIO                          PROXY
     CURRENT YIELD                          PUT OPTION
     DAY ORDER                              QUICK RATIO
     DEBT/EQUITY RATIO                      RANGE
     DECILE RANK                            RATE OF RETURN
     DECLARATION DATE                       RECORD DATE
     DEFERRED TAXES                         REDEMPTION CHARGE
     DEPRECIATION                           RELATIVE STRENGTH
     DERIVATIVE SECURITY                    RETRACEMENT
     DETREND                                RETURN ON ASSETS (ROA)
     DIFFERENCE FROM S&P                    RETURN ON EQUITY (ROE)
     DISTRIBUTIONS                          REVERSE STOCK SPLIT
     DIVERGENCE                             RIGHTS OFFERING
     DIVIDEND                               SALES CHARGE
     DIVIDEND REINVESTMENT PLAN             SEC
     DIVIDEND YIELD (MUTUAL FUNDS)          SECONDARY MARKET
     DIVIDEND YIELD (STOCKS)                SELLING SHORT
     DIVIDENDS PER SHARE                    SERIES
     DOWNGRADE                              SETTLEMENT DATE
     EARNINGS                               SHARE REPURCHASE
     EARNINGS PER SHARE (EPS)               SHORT POSITION (OPTIONS)
     EARNINGS YIELD                         SHORT POSITION (STOCKS)
     EQUITY                                 SHORT SALE
     EQUITY OPTIONS                         SIC
     EUROPEAN-STYLE OPTION                  SLIPPAGE
     EX-DIVIDEND DATE                       STOCK DIVIDEND
     EXCHANGE                               STOP ORDER
     EXECUTION                              STRIKE PRICE
     EXERCISE                               TICK INDICATOR
     EXPENSE RATIO                          TIME VALUE
     EXPIRATION CYCLE                       TOTAL REVENUE
     EXPIRATION DATE                        TRADE
     FREE CASH FLOW                         TRADE DATE
     FREE CASH FLOW PER SHARE               TRADING RANGE
     FUND FAMILY                            TURNOVER RATIO
     FUND MANAGER                           TYPE
     FUTURES CONTRACT                       UNCOVERED CALL
     GOOD 'TIL CANCELED                     UNCOVERED PUT
     GROWTH RATES                           UNDERLYING SECURITY
     HEAD AND SHOULDERS                     VOLATILITY (MUTUAL FUNDS)
     HEDGING                                WALL STREET TRACKER
     HIGH PRICE                             W-TYPE BOTTOM
     HOLDING COMPANY                        WARRANT
     IN-THE-MONEY                           WASTING ASSET
     INDICATED DIVIDEND                     WITHDRAWAL PLAN
     INDICATED YIELD                        WRITER
     INDUSTRY                               YIELD
     INITIAL PUBLIC OFFERING (IPO)          YIELD TO CALL
     INSIDE INFORMATION                     YIELD TO MATURITY
     INSTITUTIONAL HOLDINGS


===============================================================================


                                 DEFINITIONS


===============================================================================

  10-K

  Annual report required by the SEC each year.  Provides a comprehensive
  overview of a company's state of business.  Must be filed within 90 days
  after fiscal year end.


  12B-1 FEES

  The predetermined percent of a mutual fund's assets used to defray marketing
  expenses.  The amount of the fee is stated in the fund's prospectus.
  Marketing fees are included in the expense ratio when there are no 12b-1
  fees.


  ALPHA

  A measure of selection risk (also known as residual risk) of a mutual fund
  in relation to the market.  A positive alpha is the extra return awarded to
  the investor for taking a risk, instead of accepting the market return.
  For example, an alpha of 0.4 means the fund outperformed the market-based
  return estimate by 0.40%.  A -0.6 means a fund's monthly return was 0.60%
  less than would have been predicted from the change in the market alone.


  ALPHA EQUATION

  The alpha of a fund is determined as follows:

    [ (sum of y) - ((b)(sum of x)) ] / n

    where:  n =number of observations (36 months)
            b = beta of the fund
            x = rate of return for the S&P 500
            y = rate of return for the fund


  AMERICAN-STYLE OPTION

  An option contract that can be exercised at any time between the date of
  purchase and the expiration date.  Most exchange-traded options are American
  style.


  ANALYST

  Employee of a brokerage or fund management house who studies companies and
  makes buy and sell recommendations on their stocks.  Most specialize in a
  specific industry.


  ANNUAL REPORT

  Yearly record of a publicly held company's financial condition.  It includes
  a description of the firm's operations, its balance sheet and income
  statement.  SEC rules require that it be distributed to all shareholders.
  A more detailed version is called a 10-K.


  ARBITRAGE

  Profiting from differences in the price of a single security that is traded
  on more than one market.


  ARMS INDEX

  Also known as TRading INdex (TRIN):

    = #advancing issues/#declining issues

      Total up volume/total down volume

  An advance/decline market indicator.  Less than 1.0 indicates bullish
  demand, while above 1.0 is bearish.  The index often is smoothed with a
  simple moving average.


  ASSIGNMENT

  The receipt of an exercise notice by an options writer that requires him to
  sell (in the case of a call) or purchase (in the case of a put) the
  underlying security at the specified strike price.


  AT-THE-MONEY

  An option is at-the-money if the strike price of the option is equal to the
  market price of the underlying security.  For example, if XYZ stock is
  trading at 54, then the XYZ 54 option is at-the-money.


  AUTOREGRESSIVE

  Using previous data to predict future data.


  AVERAGE

  An arithmetic mean of selected stocks intended to represent the behavior of
  the market or some component of it.  One good example is the widely quoted
  Dow Jones Industrial Average, which adds the current prices of the 30 DJIA's
  stocks, and divides the results by a predetermined number, the divisor.


  AVERAGE MATURITY

  The average time to maturity of securities held by a mutual fund.  Changes
  in interest rates have greater impact on funds with longer average life.


  AVERAGE WEEKLY VOLUME

  This indicator is determined by adding the number of shares traded for the
  past week and dividing by the number of trading days in that week.


  BACK OFFICE

  Brokerage house clerical operations that support, but do not include, the
  trading of stocks and other securities.  Includes all written confirmation
  and settlement of trades, record keeping and regulatory compliance.


  BANKER'S ACCEPTANCE

  A short-term credit investment created by a non-financial firm and
  guaranteed by a bank as to payment.  Acceptances are traded at discounts
  from face value in the secondary market.  These instruments have been a
  popular investment for money market funds.


  BASIS

  The price an investor pays for a security plus any out-of-pocket expenses.
  It is used to determine capital gains or losses for tax purposes when the
  stock is sold.


  BASIS POINTS

  Refers to yield on bonds.  Each percentage point of yield in bonds equals
  100 basis points.  If a bond yield changes from 7.25% to 7.39%, that's a
  rise of 14 basis points.


  BEAR

  An investor who believes a stock or the overall market will decline.  A bear
  market is a prolonged period of falling stock prices.


  BEAR RAID

  A situation in which large traders sell positions with the intention of
  driving prices down.


  BETA (MUTUAL FUNDS)

  The measure of a fund's risk in relation to the market.  A 0.7 beta means
  the fund's total return is likely to move up or down 70% of the market
  change; 1.3 means total return is likely to move up or down 30% more than
  the market.


  BETA EQUATION (MUTUAL FUNDS)

  The beta of a fund is determined as follows:

  [(n) (sum of (xy)) ]-[ (sum of x) (sum of y)]

  [(n) (sum of (xx)) ]-[ (sum of x) (sum of x)]

    where:  n = # of observations (36 months)

    x = rate of return for the S&P 500 Index

    y = rate of return for the fund


  BETA (STOCKS)

  Measure of a stock's risk in relation to the market.  A 0.7 beta means a
  stock price is likely to move up or down 70% of the market change; 1.3 means
  the stock is likely to move up or down 30% more than the market.


  BETA EQUATION (STOCKS)

  The beta of a stock is determined as follows:

  [(n) (sum of (xy)) ]-[(sum of x) (sum of y)]

  [(n) (sum of (xx)) ]-[(sum of x) (sum of x)]

  where:  n = # of observations (24-60 months)

     x = rate of return for the S&P 500 Index

     y = rate of return for the stock


  BLOW-OFF TOP

  A steep and rapid increase in price followed by a steep and rapid drop in
  price.  This is an indicator seen in charts and used in technical analysis
  of stock price and market trends.


  BREAKOUT

  A rise in a security's price above a resistance level (commonly its previous
  high price) or drop below a level of support (commonly the former lowest
  price.)  A breakout is taken to signify a continuing move in the same
  direction.  Can be used by technical analysts as a buy or sell indication.


  BULL

  An investor who thinks the market will rise.


  BULL MARKET

  A market which is on a consistent upward trend.


  BUYOUT

  Purchase of a controlling interest (or percent of shares) of a company's
  stock.  A leveraged buyout is done with borrowed money.


  CALL OPTION

  An option contract that gives the holder of the option the right (but not
  the obligation) to purchase, and obligates the writer to sell, a specified
  number of shares of the underlying stock at the given strike price, on or
  before the expiration date of the contract.


  CAPITAL EXPENDITURES

  Amount used during a particular period to acquire long term assets such as
  property, plant, or equipment.


  CAPITAL GAIN

  When a stock is sold for a profit, it's the difference between the net sales
  price of securities and their net cost, or original basis.  If a stock is
  sold below cost, the difference is a capital loss.


  CAPITAL LOSS

  The difference between the net cost of a security and the net sale price, if
  that security is sold at a loss.


  CASH AND EQUIVALENTS

  The value of assets that can be converted into cash immediately, as reported
  by a company.  Usually includes bank accounts and marketable securities,
  such as government bonds and Bankers' Acceptances.


  CASH DIVIDEND

  A dividend paid in cash to a company's shareholders.  The amount is normally
  based on profitability and is taxable as income.


  CHANGES IN FINANCIAL POSITION

  Sources of funds internally provided from operations which alter a company's
  cash flow position: depreciation, deferred taxes, other sources, and capital
  expenditures.


  CHURNING

  Excessive trading of a client's account in order to increase the broker's
  commissions.


  CLOSING PURCHASE

  A transaction in which the purchaser's intention is to reduce or eliminate a
  short position in a stock, or in a given series of options.


  CLOSING SALE

  A transaction in which the seller's intention is to reduce or eliminate his
  long position in a stock, or a given series of options.


  COMMISSION

  The fee paid to a broker to execute a trade, based on number of shares,
  bonds, options and their dollar value.  In 1975, deregulation led to the
  creation of discount brokers, who charge lower commissions than full service
  brokers.  Full service brokers offer advice and usually have a full staff of
  analysts who follow specific industries.  Discount brokers simply execute a
  client's order--and do not offer an opinion on a stock.


  COMMON STOCK/OTHER EQUITY

  Value of outstanding common shares at par, plus accumulated retained
  earnings.  Also called shareholders' equity.


  CONFIDENCE INDICATOR

  A measure of investors' faith in the economy and the securities market.  A
  low or deteriorating level of confidence is considered by many technical
  analysts as a bearish sign.


  CONFIDENCE LEVEL

  The degree of assurance that a specified failure rate is not exceeded.


  CONFIRMATION

  The written statement that follows any "trade" in the securities markets.
  Confirmation is issued immediately after a trade is executed.  It spells out
  settlement date, terms, commission, etc.


  CONVERGENCE

  The movement of the price of a futures contract toward the price of the
  underlying cash commodity.  At the start, the contract price is higher
  because of the time value.  But as the contract nears expiration, the
  futures price and the cash price converge.


  CORNER A MARKET

  To purchase enough of the available supply of a commodity or stock in order
  to manipulate its price.


  COUPON RATE

  In bonds, notes or other fixed income securities, the stated percentage rate
  of interest, usually paid twice a year.


  COVERED CALL

  A short call option position in which the writer owns the number of shares
  of the underlying stock represented by the option contracts.  Covered calls
  generally limit the risk the writer takes because the stock does not have to
  be bought at the market price, if the holder of that option decides to
  exercise it.


  COVERED PUT

  A put option position in which the option writer also is short the
  corresponding stock or has deposited, in a cash account, cash or cash
  equivalents equal to the exercise of the option.  This limits the option
  writer's risk because money or stock is already set aside.  In the event
  that the holder of the put option decides to exercise the option, the
  writer's risk is more limited than it would be on an uncovered or naked put
  option.


  CURRENT ASSETS

  Value of cash, accounts receivable, inventories, marketable securities and
  other assets that could be converted to cash in less than 1 year.


  CURRENT LIABILITIES

  Amount owed for salaries, interest, accounts payable and other debts due
  within 1 year.


  CURRENT RATIO

  Indicator of short-term debt paying ability.  Determined by dividing current
  assets by current liabilities.  The higher the ratio, the more liquid the
  company.


  CURRENT YIELD

  For bonds or notes, the coupon rate divided by the market price of the bond.


  DAY ORDER

  An order to buy or sell stock that automatically expires if it can't be
  executed on the day it is entered.


  DEBT/EQUITY RATIO

  Indicator of financial leverage.  Compares assets provided by creditors to
  assets provided by shareholders.  Determined by dividing long term debt by
  common stockholders' equity.


  DECILE RANK

  Performance over time, rated on a scale of 1-10.  A 1 indicates that a
  mutual fund's return was in the top 10% of funds being compared, while a 3
  means the return was in the top 30%.  Objective Rank compares all funds in
  the same investment strategy category.  All Rank compares all funds.


  DECLARATION DATE

  The date on which a firm's directors meet and announce the date and amount
  of the next dividend.


  DEFERRED TAXES

  A non-cash expense that provides a source of free cash flow.  Amount
  allocated during the period to cover tax liabilities that have not yet been
  paid.


  DEPRECIATION

  A non-cash expense that provides a source of free cash flow.  Amount
  allocated during the period to amortize the cost of acquiring long term
  assets over the useful life of the assets.


  DERIVATIVE SECURITY

  A financial security, such as an option, or future, whose value is derived
  in part from the value and characteristics of another security, the
  underlying security.


  DETREND

  To remove the general drift, tendency or bent of a set of statistical data
  as related to time.


  DIFFERENCE FROM S&P

  A mutual fund's return minus the change in the Standard & Poors 500 Index
  for the same time period.  A notation of -5.00 means the fund return was 5
  percentage points less than the gain in the S&P, while 0.00 means that the
  fund and the S&P had the same return.


  DISTRIBUTIONS

  Payments of fund earnings (dividends) or gains (capital gains).
  Distributions can be made by check or by investing in additional shares.
  Funds are required to distribute gains (if any) to shareholders at least
  once per year.  Technical analysts look on a pattern of distribution as a
  tipoff that the stock will soon fall in price.


  DIVERGENCE

  When two or more averages or indices fail to show confirming trends.


  DIVIDEND

  Distribution of a portion of a company's earnings to shareholders, in cash
  or additional stock.


  DIVIDEND REINVESTMENT PLAN

  Automatic reinvestment of shareholder dividends in more shares of a
  company's stock.  Dividend reinvestment plans allow shareholders to
  accumulate capital over the long term using dollar cost averaging.


  DIVIDEND YIELD (MUTUAL FUNDS)

  Indicated Yield represents return on a share of a mutual fund held over the
  past 12 months.  Assumes fund was purchased 1 year ago.  Reflects effect of
  sales charges (at current rates), but not redemption charges.


  DIVIDEND YIELD (STOCKS)

  Indicated Yield represents annual dividends divided by current stock price.


  DIVIDENDS PER SHARE

  Dividends paid for the past 12 months divided by the number of common shares
  outstanding, as reported by a company.  The number of shares often is
  determined by a weighted average of shares outstanding over the reporting
  term.


  DOWNGRADE

  A classic negative change in ratings for a stock, and or other rated
  security.


  EARNINGS

  Net income for the company during the period.


  EARNINGS PER SHARE (EPS)

  Also referred to as Primary Earnings Per Share.  Net income for the past 12
  months divided by the number of common shares outstanding, as reported by a
  company.  The company often uses a weighted average of shares outstanding
  over reporting term.


  EARNINGS YIELD

  The ratio of Earnings Per Share after allowing for tax and interest payments
  on fixed interest debt, to the current share price.  The inverse of the
  Price/Earnings ratio.  It's the Total Twelve Months Earnings divided by
  number of outstanding shares, divided by the recent price, multiplied by
  100.  The end result is shown in percentage.


  EQUITY

  The value of the common stockholders' equity in a company as listed on the
  balance sheet.


  EQUITY OPTIONS

  Securities that give the holder the right to buy or sell a specified number
  of shares of stock, at a specified price for a certain (limited) time
  period.  Typically one option equals 100 shares of stock.


  EUROPEAN-STYLE OPTION

  An option contract that can only be exercised on the expiration date.


  EX-DIVIDEND DATE

  The first day of trading when the seller, rather than the buyer, of a stock
  will be entitled to the most recently announced dividend payment.  The
  length of time ensuing between the ex-dividend date and the date of actual
  payment may be up to a month.  A stock that has gone Ex-Dividend is marked
  with an x in newspaper listings.


  EXCHANGE

  The marketplace in which shares, options and futures on stocks, bonds,
  commodities and indices are traded.  Principal US stock exchanges are: New
  York Stock Exchange (NYSE), American Stock Exchange (AMEX) and the National
  Association of Securities Dealers (NASDAQ).


  EXECUTION

  The process of completing an order to buy or sell securities.  Once a trade
  is executed, it is considered final.  Settlement (payment and transfer of
  ownership) occurs between 1 and 5 days after an order is executed.


  EXERCISE

  To implement the right of the holder of an option to buy (in the case of a
  call) or sell (in the case of a put) the underlying security.


  EXPENSE RATIO

  The percentage of the assets that were spent to run a mutual fund (as of the
  last quarterly fund report).  This includes expenses such as brokerage
  commissions, management fees, and overhead costs.  Excludes 12b-1 fees.


  EXPIRATION CYCLE

  An expiration cycle relates to the dates on which options on a particular
  security expire.  A given option will be placed in 1 of 3 cycles, the
  January cycle, the February cycle, or the March cycle.  At any point in
  time, an option will have contracts with 4 expiration dates outstanding, 2
  in near-term months and 2 in far-term months.


  EXPIRATION DATE

  The last day (in the case of American-style) or the only day (in the case of
  European-style) on which an option may be exercised.  For stock options,
  this date is the Saturday immediately following the 3rd Friday of the
  expiration month; however, brokerage firms may set an earlier deadline for
  notification of an option holder's intention to exercise.  If Friday is a
  holiday, the last trading day will be the preceding Thursday.


  FREE CASH FLOW

  Indicator of liquidity.  Amount of cash produced or consumed by a company
  for a specific period.  Useful in determining the company's ability to meet
  obligations, pay dividends and fund business expansion.


  FREE CASH FLOW PER SHARE

  Free cash flow divided by the number of common shares outstanding.


  FUND FAMILY

  The management company that runs and/or sells shares of the fund.  Fund
  families often offer several funds with different investment objectives.


  FUND MANAGER

  The person who determines how mutual fund assets are invested.


  FUTURES CONTRACT

  Agreement to buy or sell a set number of shares of a specific stock in a
  designated future month at a price agreed upon by the buyer and seller.  The
  contracts themselves are often traded on the futures market.  A futures
  contract differs from an option because an option is the right to buy or
  sell, whereas a futures contract is the promise to actually make a
  transaction.


  GOOD 'TIL CANCELED

  Sometimes simply called "GTC", it means an order to buy or sell stock that
  is good until you cancel it.


  GROWTH RATES

  The amount a company grows, year by year.


  HEAD AND SHOULDERS

  In technical analysis, a chart formation in which a stock price reaches a
  peak and declines, rises above its former peak and again declines and rises
  again but not to the second peak and then again declines.  The first and
  third peaks are shoulders, while the second peak is the formation's head.
  Technical analysts generally consider a head and shoulders formation to be a
  very bearish indication.


  HEDGING

  A strategy designed to reduce investment risk using "call" options, "put"
  options, "short" selling, or futures contracts.  A hedge can help lock in
  existing profits.  Its purpose is to reduce the potential volatility of a
  portfolio, by reducing the risk of loss.


  HIGH PRICE

  The highest (intraday) price of a stock over the past 52 weeks, adjusted for
  any stock splits.


  HOLDING COMPANY

  A corporation that owns enough voting stock in another firm to control
  management and operations by influencing or electing its board of directors.


  IN-THE-MONEY

  A "call" option is in-the-money if the strike price is less than the market
  price of the underlying security.  A "put" option is in-the-money if the
  strike price is greater than the market price of the underlying security.
  For example, an XYZ "call" option with a 52 strike price is in-the-money
  when XYZ trades at 52 1/8 or higher.  An XYZ "put" option with a 52 strike
  price is in-the-money when XYZ is trading at 51 7/8 or lower.


  INDICATED DIVIDEND

  Total amount of dividends that would be paid on a share of stock over the
  next 12 months if each dividend were the same amount as the most recent
  dividend.


  INDICATED YIELD

  The yield, based on the most recent quarterly rate times four.  To determine
  the yield, divide the annual dividend by the price of the stock.  The
  resulting number is represented as a percentage.


  INDUSTRY

  The category describing a company's primary business activity.  This usually
  is determined by the largest portion of revenue.


  INITIAL PUBLIC OFFERING (IPO)

  A company's first sale of stock to the public.  Securities offered in an IPO
  are often but not always those of young, small companies seeking outside
  equity capital and a public market for their stock.  Investors purchasing
  stock in IPOs generally must be prepared to accept very large risks for the
  possibility of large gains.


  INSIDE INFORMATION

  Relevant information about a company that has not yet been made public.  It
  is illegal for holders of this information to make trades based on it.


  INSTITUTIONAL HOLDINGS

  Institutional Holdings are those holdings or ownership of a company held by
  other companies or institutions.


  INVENTORY

  Value of items available for sale and in the process of being made ready for
  sale.


  IRA/KEOGH ACCOUNTS

  Special accounts where you can save and invest, and the taxes are deferred
  until money is withdrawn.


  LAST SPLIT

  After a stock split, the number of shares distributed for each share held
  and the date of the distribution.


  LIMIT ORDER

  An order to buy a stock below a specified price or to sell a stock at above
  a specified price.  For instance, you could tell a broker "Buy me 100 shares
  of XYZ Corp at $8 or less" or to "sell 100 shares of XYZ at $10 or better."


  LOAD MUTUAL FUND

  A mutual fund with shares sold at a price including a sales
  charge--typically 4% to 9.3% of the net amount indicated.


  LONG POSITION

  Occurs when an individual owns securities.  An owner of 100 shares of stock
  is said to be "Long the Stock."


  LONG POSITION (OPTIONS)

  An options position where a person has executed one or more options trades
  where the net result is that they are an "owner" or holder of options (i.e.
  the number of contracts bought exceeds the number of contracts sold).


  LONG TERM ASSETS

  Value of property, equipment and other capital assets minus the
  depreciation.  This is an entry in the bookkeeping records of a company and
  does not necessarily reflect the market value of the assets.


  LONG TERM DEBT

  Value of obligations of over 1 year that require that interest be paid.


  LONG TERM DEBT/CAPITALIZATION

  Indicator of financial leverage.  Shows long term debt as a proportion of
  the capital available.  Determined by dividing long term debt by the sum of
  long term debt, preferred stock and common stockholders' equity.


  LONG TERM LIABILITIES

  Amount owed for leases, bond repayment and other items due after 1 year.


  LOW PRICE

  The lowest (intraday) price of a stock over a certain period of time.


  MANAGEMENT/CLOSELY HELD SHARES

  Percentage of shares held by persons closely related to a company, as
  defined by the Securities and Exchange Commission.  Part of these
  percentages often is included in Institutional Holdings--making the combined
  total of these percentages over 100.  There is overlap as institutions
  sometimes acquire enough stock to be considered by the SEC to be closely
  allied to the company.


  MARGIN ACCOUNT (STOCKS)

  A leveraged account where stocks can be purchased for a combination of cash
  and a loan.  The loan in the margin account is collateralized by the stock
  and, if the value of the stock drops, the owner will be asked to either put
  in more cash, or sell a portion of the stock.  This is all federally
  regulated.


  MARGIN REQUIREMENT (OPTIONS)

  The amount of cash an uncovered (naked) option writer is required to deposit
  and maintain to cover his daily position valuation and reasonably
  foreseeable intraday price changes.


  MARKET CAP

  Also known as Market Capitalization.  The dollar value of outstanding
  shares.  Computed as shares times price.


  MARKET CYCLE

  The period between the 2 latest highs or lows of the S&P 500, showing net
  performance of a fund through both an up and a down market.  A market cycle
  is complete when the S&P is 15% below the highest point or 15% above the
  lowest point (ending a down market).  The dates of the last market cycle
  are: 12/04/87 to 10/11/90 (low to low).


  MARKET ORDER

  An order to buy or sell a stock at the going price.


  MINIMUM PURCHASES

  For mutual funds, the amount required to open a new account or to deposit
  into an existing account.  Some funds are closed to new investors, but allow
  deposits to existing accounts.


  MONEY MARKET FUND

  A mutual fund that specializes in making short-term investments such as
  30-day Treasury bills, Banker's Acceptances, Certificates of Deposit and
  other short-term instruments.


  MOVING AVERAGE

  Used in charts and technical analysis, the average of security or commodity
  prices constructed in a period as short as a few days or as long as several
  years and showing trends for the latest interval.  As each new variable is
  included in calculating the average, the last variable of the series is
  deleted.


  MUTUAL FUND

  An investment company that pools investors' money to invest in a variety of
  stocks, bonds, or other securities.


  MUTUAL FUND TRACKER

  A very sophisticated and professional computer program to track and chart
  mutual funds.  The Mutual Fund Tracker works using technical analysis and a
  Mutual Fund Composite Average, in conjunction with other key indices, to
  determine when to get into and out of mutual funds.  The program compares
  three moving averages against each other, and then compares each moving
  average to the current price.  You can even change the moving averages, used
  by the program, to look at different "what if" calculations based on your
  investment objectives.  Features:  easy to understand documentation; graphs;
  period and individual reports; select TREND or access actual BUY, SELL, and
  HOLD signals; ability to write graph pictures to disk for later review with
  The Graph Tracker; optional auto-update of data; data subscriptions; and
  more.  Write to: Watkins Enterprises, P.O. Box 33280, Suite 195, Austin,
  Texas, 78764-0280 for more information.


  NET ASSET VALUE (NAV)

  The value of a mutual fund's investments.


  NET INCOME

  The company's total earnings after expenses.


  NM

  Abbreviation for Not Meaningful.  Used when a value cannot be calculated
  because 1 of more parts of the calculation are unknown or the result would
  be a negative value and therefore not meaningful.


  NO LOAD MUTUAL FUND

  An open-end investment company, shares of which are sold without a sales
  charge.  There can be other charges, however, such as management fees,
  expense fees or 12b-1 fees.


  NOISE

  Price and volume fluctuations that can confuse interpretation of market
  direction.


  OBJECTIVE (MUTUAL FUNDS)

  The fund's investment strategy category as stated in the prospectus.  There
  are more than 20 standardized categories.  See the Objective section in
  Mutual Fund Analyst's "About the Analyst" for a printable list of categories
  and their meanings.


  OPEN INTEREST

  The number of outstanding option contracts in the exchange market or in a
  particular class or series.


  OPENING PURCHASE

  A transaction in which the purchaser's intention is to create or increase a
  long position in a given series of options.


  OPENING SALE

  A transaction in which the seller's intention is to create or increase a
  short position in a given series of options.


  OPTION

  Gives the buyer the right, but not the obligation, to buy or sell stock at a
  set price on or before a given date.  Investors, not companies, issue
  options.  Investors who purchase call options bet the stock will be worth
  more than the price set by the option (the strike price), plus the price
  they paid for the option itself.  Buyers of put options bet the stock's
  price will go down below the price set by the option.


  OTHER CURRENT ASSETS

  Value of non-cash assets, including prepaid expenses and accounts
  receivable, due within 1 year.


  OTHER LONG TERM LIABILITIES

  Value of leases, future employee benefits, deferred taxes and other
  obligations not requiring interest payments that must be paid over a period
  of more than 1 year.


  OUT-OF-THE-MONEY

  A call option is out-of-the-money if the strike price is greater than the
  market price of the underlying security.  A put option is out-of-the-money
  if the strike price is less than the market price of the underlying
  security.


  OVERBOUGHT\OVERSOLD INDICATOR

  An indicator that attempts to define when prices have moved too far and too
  fast in either direction and thus are vulnerable to reaction.


  PAYMENT DATE

  Date on which a declared stock dividend or a bond interest payment is
  scheduled to be made.


  PHONE SWITCHING

  In mutual funds, the ability to transfer shares between funds in the same
  family by telephone request.  There may be a charge associated with these
  transfers.


  PIVOT

  Price level established as being significant by market's failure to
  penetrate or as being significant when a sudden increase in volume
  accompanies the move through the price level.


  POINT AND FIGURE CHART

  A price-only chart that takes into account only whole integer changes in
  price, i.e., a 2-point change.  Point and figure charting disregards the
  element of time and is solely used to record changes in price.


  PREFERRED STOCK

  A security that shows ownership in a corporation and gives the holder a
  claim, prior to the claim of common stockholders, on earnings and also
  generally on assets in the event of liquidation.  Most preferred stock pays
  a fixed dividend, stated in a dollar amount or as a percentage of par value.
  This stock does not usually carry voting rights.  


  PREMIUM

  The price of an option contract, determined on the exchange, which the buyer
  of the option pays to the option writer for the rights to the option
  contract.


  PRICE/BOOK RATIO

  Compares a stock's market value to the value of total assets less total
  liabilities (book).  Determined by dividing current price by common
  stockholders' equity per share (book value), adjusted for stock splits.
  Also called Market-to-Book.


  PRICE/EARNINGS RATIO

  Shows the "multiple" of earnings at which a stock sells.  Determined by
  dividing current price by current earnings per share (adjusted for stock
  splits).  Earnings per share for the P/E ratio is determined by dividing
  earnings for past 12 months by the number of common shares outstanding.
  Higher "multiple" means investors have higher expectations for future
  growth, and have bid up the stock's price.


  P/E RATIO

  The ratio represents the sum of the market value (price multiplied by the
  number of shares) divided by the sum of the earnings of that company.  A
  A negative P/E is considered undefined and is shown as NM (not meaningful).
  The industry average represents the sum of the market value (price
  multiplied by the number of shares) for all companies within the same
  industry divided by the sum of the earnings for those companies.


  PRICE/SALES RATIO

  Determined by dividing stock's current price by revenue per share (adjusted
  for stock splits).  Revenue per share for the P/S ratio is determined by
  dividing revenue for past 12 months by number of shares outstanding.
  The industry average is the sum of market value (price multiplied by the
  number of shares) for all companies within the same industry divided by sum
  of revenue for those firms.


  PRICES

  Price of a share of common stock on the date shown.  Highs and lows are
  based on the highest and lowest trading price of the stock and may reflect
  an intraday (as opposed to end-of-day) price.  To find the current price or
  quote check your local newspaper.


  PRIMARY MARKET

  The first buyer of a newly issued security buys that security in the primary
  market.  All subsequent trading of those securities is done in the secondary
  market.


  PROFIT MARGIN

  Indicator of profitability.  Determined by dividing net income by revenue
  for the same 12-month period.  Result is shown as a percentage.  The
  industry average represents the sum of earnings for all companies within the
  same industry divided by the sum of the revenue for those companies.


  PROGRAM TRADING

  Trades based on signals from computer programs, usually entered directly
  from the trader's computer to the market's computer system and executed
  automatically.


  PROSPECTUS

  Formal written document to sell securities that describes the plan for a
  proposed business enterprise, or the facts concerning an existing one, that
  an investor needs to make an informed decision.  Prospectuses are also used
  by mutual funds, describing the holdings, background of managers, fund
  objectives, a financial statement and other essential data.


  PROXY

  Document intended to provide shareholders with information necessary to vote
  in an informed manner on matters to be brought up at a stockholders'
  meeting.  Includes information on closely held shares.  Shareholders can and
  often do give management their proxy--and the right to vote their shares.


  PUT OPTION

  An option contract that gives the holder the right to sell (or "put"), and
  places upon the writer the obligation to purchase, a specified number of
  shares of the underlying stock at the given strike price on or before the
  expiration date of the contract.


  QUICK RATIO

  Indicator of a company's financial strength (or weakness).  Calculated by
  taking current assets less inventories, divided by current liabilities.
  Also called Acid Test.  The industry average represents the sum of the
  current assets less inventories for all companies within the same industry,
  divided by the sum of the current liabilities for those companies.


  RANGE

  The difference between the high and low price during a given period.


  RATE OF RETURN

  The percentage gain or loss for a mutual fund in a specific time period.
  This number assumes that all distributions are reinvested at the current
  rate of return.  Annualized return is a compounded yearly rate.


  RECORD DATE

  Date by which a shareholder must officially own shares in order to be
  entitled to a dividend.  For example, a firm might declare a dividend on
  November 1st, payable December 1st, to holders of record, November 15th.
  Once a trade is executed an investor "owns" the stock, but is not "owner of
  record" until the settlement, which typically takes 5 business days.  After
  the record date, a stock is said to be EX-DIVIDEND.


  REDEMPTION CHARGE

  The maximum commission charged by a mutual fund when redeeming shares.  For
  example, a 2% redemption charge (also called a "back end load") on the sale
  of shares valued at $1000 will result in payment of $980 (or 98% of the
  value) to the investor.  This charge may decrease as shares are held for
  longer time periods.


  RELATIVE STRENGTH

  A stock's price movement over the past year as compared to a market index
  (the S&P 500).  Value below 1.0 means the stock shows relative weakness in
  price movement (underperformed the market); a value above 1.0 means the
  stock shows relative strength over the 1-year period.

  Equation for Relative Strength:

     [current stock price/year-ago stock price]

     [current S&P 500/year-ago S&P 500]


  RETRACEMENT

  A price movement in the opposite direction of the previous trend.


  RETURN ON ASSETS (ROA)

  Indicator of profitability.  Determined by dividing net income for the past
  12 months by total assets.  Result is shown as a percentage.  The industry
  average ROA represents the sum of the earnings for all companies, within the
  same industry, divided by the sum of the total assets for those companies.


  RETURN ON EQUITY (ROE)

  Indicator of profitability.  Determined by dividing net income for the past
  12 months by common stockholders' equity (adjusted for stock splits).
  Result is shown as a percentage.  The industry average ROE represents the
  sum of the earnings for all companies, within the same industry, divided by
  the sum of the stockholders' equity for those companies.


  REVERSE STOCK SPLIT

  A proportionate decrease in the number of shares, but not the value of
  shares of stock held by shareholders.  Shareholders maintain the same
  percentage of equity as before the split.  For example, a 1-for-3 split
  would result in stockholders owning 1 share for every 3 shares owned before
  the split.  A firm generally institutes a reverse split in order to boost
  its stock's market price because it thinks the price is too low to woo
  investors.


  RIGHTS OFFERING

  Offering of common stock to existing shareholders who hold rights that
  entitle them to buy newly issued shares at a discount from the price at
  which shares will later be offered to the public.


  SALES CHARGE

  The maximum commission charged by a mutual fund when purchasing shares.  A
  4% sales charge (also called a load) on a $1000 purchase will buy $960 worth
  of fund shares.  No Load funds do not carry sales charges, but may have
  management fees, expenses and 12b-1 fees.


  SEC

  The Securities and Exchange Commission, the primary federal regulatory
  agency of the securities industry.


  SECONDARY MARKET

  A market that provides for the purchase or sale of previously owned
  securities.  Most trading is done in the secondary market.  The New York
  Stock Exchange, as well as all other stock exchanges, the bond markets,
  etc., are secondary markets.


  SELLING SHORT

  If an investor thinks the price of a stock is going down, the investor could
  borrow the stock from a broker and sell it.  Eventually, s/he must buy the
  stock back on the open market.  For instance, you borrow 1000 shares of XYZ
  on July 1 and sell it for $8 per share.  Then, on August 1st, you purchase
  1000 shares of XYZ at $7 per share.  You've made $1000 by selling short.


  SERIES

  All option contracts of the same class that also have the same unit of
  trade, expiration date, and exercise price.


  SETTLEMENT DATE

  The date on which payment is made to settle a trade.  Settlement is
  generally made 1-5 business days after a trade is executed.  In stocks,
  settlement is generally 5 business days after the trade.


  SHARE REPURCHASE

  Program by which a corporation buys back its own shares in the open market.
  It is usually done when shares are undervalued.  Since it reduces the number
  of shares outstanding and thus increases earnings per share, it tends to
  elevate the market value of the remaining shares held by stockholders.


  SHORT POSITION (OPTIONS)

  A position wherein a person's interest in a particular series of options is
  as a net writer (for example, the number of contracts sold exceeds the
  number of contracts bought.)


  SHORT POSITION (STOCKS)

  Occurs when a person sells stocks s/he does not yet own.  Shares must be
  borrowed, before the sale, to make "good delivery" to the buyer.
  Eventually, the shares must be bought to close out the transaction.
  Technique is used when an investor believes the stock price is going down.


  SHORT SALE

  Selling a security that the seller does not own but is committed to buying
  eventually.  It is used to capitalize on an expected decline in price.


  SIC

  Abbreviation for Standard Industrial Classification.  Each 4-digit code
  represents a unique business activity.


  SLIPPAGE

  The difference between estimated transaction costs and actual transaction
  costs.  The difference is usually composed of a price difference and
  commission costs.


  STOCK DIVIDEND

  Payment of a corporate dividend in the form of stock rather than cash.  The
  stock dividend may be additional shares in the company, or it may be shares
  in a subsidiary being spun off to shareholders.  Stock dividends are often
  used to conserve cash needed to operate the business.  Unlike a cash
  dividend, stock dividends are not taxed until sold.


  STOP ORDER

  An order to sell a stock when the price falls to a specified level.


  STRIKE PRICE

  The stated price per share for which underlying stock may be purchased (in
  the case of a call) or sold (in the case of a put) by the option holder upon
  exercise of the option contract.


  TICK INDICATOR

  A market indicator based on the number of stocks whose last trade was an
  uptick or a downtick.  Used as an indicator of market sentiment or
  psychology to try to predict the market's trend.


  TIME VALUE

  The portion of the premium that is based on the amount of time remaining
  until the expiration date of the option contract, and that the underlying
  components that determine the value of the option may change during that
  time.  Time value is generally equal to the difference between the premium
  and the intrinsic value.


  TOTAL REVENUE

  Total sales and other revenue for the period shown.


  TRADE

  A verbal (or electronic) transaction involving one party buying a security
  from another party.  Once a trade is consummated, it is considered "done" or
  final.  Settlement occurs 1-5 business days later.


  TRADE DATE

  The date on which a trade occurs.  Trades generally settle (are paid for)
  1-5 business days after a trade date.  With stocks, settlement is generally
  5 business days after the trade.


  TRADING RANGE

  The difference between the high and low prices traded during a period of
  time; with commodities, the high/low price limit established by the exchange
  for a specific commodity for any one day's trading.


  TURNOVER RATIO

  A measure of a mutual fund manager's trading activity during the previous
  year.  This is expressed as a percentage of the average total assets of the
  fund.  A turnover ratio of 25% means that the value of trades represented
  one-fourth of the assets of the fund.


  TYPE

  The classification of an option contract as either a put or a call.


  UNCOVERED CALL

  A short call option position in which the writer does not own shares of
  underlying stock represented by his option contracts.  Also called a "naked"
  call, it is much riskier for the writer than a covered call, where the
  writer owns the underlying stock.  If the buyer of a call exercises the
  option to call, the writer would be forced to buy the stock at market price.


  UNCOVERED PUT

  A short put option position in which the writer does not have a
  corresponding short stock position or has not deposited, in a cash account,
  cash or cash equivalents equal to the exercise value of the put.  Also
  called "naked" puts, the writer has pledged to buy the stock at a certain
  price if the buyer of the options chooses to exercise it.  The nature of
  uncovered options means the writer's risk is unlimited.


  UNDERLYING SECURITY

  The security subject to being purchased or sold upon exercise of an option
  contract.  For example, IBM stock is the underlying security to IBM options.


  VOLATILITY (MUTUAL FUNDS)

  A measure of risk based on standard deviation in fund performance over 3
  years.  Scale is 1-9; higher rating indicates higher risk.

  Standard Deviation  Rating   Standard Deviation  Rating

      up to 7.99        1          20.00-22.99       6
      8.00-10.99        2          23.00-25.99       7
     11.00-13.99        3          26.00-28.99       8
     14.00-16.99        4          29.00 and up      9
     17.00-19.99        5


  WALL STREET TRACKER

  A very sophisticated and professional computer program to track and chart
  stocks.  The Wall Street Tracker works using technical analysis and market
  momentum to determine when to buy, sell, or hold stocks.  The program
  compares three moving averages, and then compares each moving average to the
  current price.  You can even change the moving averages, used by the program,
  to look at different "what if" results based on your criteria.  Features:
  easy menu navigation; easy selection of graphs; period and individual
  reports; access actual BUY, SELL, and HOLD signals; select TREND signals;
  optional auto-update of data; easy to understand documentation; data file
  subscriptions; plus much more.  Write to: Watkins Enterprises, P.O. Box
  33280, Suite 195, Austin, Texas, 78764-0280 for more information.


  W-TYPE BOTTOM

  A double bottom where the price or indicator chart has the appearance of a W.


  WARRANT

  A promise by a company to sell stock for a fixed price at a later date.  For
  example, if XYZ intends to issue new stock next year, it can issue $1
  warrants agreeing to sell you the stock at $8 a share when it is issued.
  When the warrants are due, investors then buy the stock at $8 a share.  They
  pay a total of $9 ($1 for the warrant plus $8 a share) for the stock.


  WASTING ASSET

  An asset which has a limited life and tends to decrease in value over time.


  WITHDRAWAL PLAN

  The ability to establish automatic periodic mutual fund redemptions and have
  proceeds mailed directly to the investor.


  WRITER

  The seller of an option contract.


  YIELD

  The percentage rate of return paid on a stock in the form of dividends, or
  the rate of interest paid on a bond or note.


  YIELD TO CALL

  The percentage rate of a bond or note, if your were to buy and hold the
  security until the call date.  This yield is valid only if the security is
  called prior to maturity.  Generally bonds are callable over several years
  and normally are called at a slight premium.  The calculation of yield to
  call is based on the coupon rate, length of time to the call and the market
  price.


  YIELD TO MATURITY

  The percentage rate of return paid on a bond, note or other fixed income
  security if you buy and hold it to its maturity date.  The calculation for
  YTM is based on the coupon rate, length of time to maturity and market
  price.  It assumes that coupon interest paid over the life of the bond will
  be reinvested at the same rate.
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