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 considerable risks for the possibility of large gains. IPOs by investment companies (closed-end funds) usually include underwriting fees that represent a load to buyers.  Read Before Investing

Life Insurance

An insurance policy that pays a monetary benefit to the insured person's survivors after death

Lines of credit

An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a pre specified amount.

Managed Money

An investment portfolio of one or more clients entrusted to a manager who decides how to invest it.

A leveraged account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.  Read Before Investing

Market Making

Used in the context of general equities. One who maintains firm bid and offer prices in a given security by standing ready to buy or sell round lots at publicly quoted prices.

Money Market Accounts

Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S. Government bonds, Treasury bills and commercial paper from banks and companies.  Read Before Investing

Money Purchase Plans

A defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called an individual account plan.

Monthly Fixed Fee Terms

Fees charge by the month based on fixed monthly dollar amounts or flat fees.

Mortgage Financing

A loan secured by property.

Municipal bonds

State or local governments offer Muni bonds or municipals, as they are called, to pay for special projects such as highways or sewers. The interest that investors receive is exempt from some income taxes.

Mutual Funds

Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investor's money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.

Off shores accounts

A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or foreign business. Read Before Investing

Online trading

The process in which clients directly enter in security orders through their own computer.

Options

 Read Risk Disclosure

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 that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par values. This stock does not usually carry voting rights. Preferred stock has characteristics of both common stock and debt. Read Before Investing

The sale of a bond or other security directly to a limited number of investors. For example, sale of stocks, bonds, or other investments directly to an institutional investor like an insurance company, avoiding the need for SEC registration if the securities are purchased for investment as opposed to resale.  Read Before Investing

Profit Sharing Plans

An incentive system providing that employees share in company profits through a cash fund or a deferred plan used to buy stock or bonds.

Research In House & S&P

Firm & S&P Research is available for most securities.  Read Before Investing

Research

Research is provided in House and through S&P.

Restricted Stock Sales

Stock that must be traded in compliance with special SEC regulations concerning its purchase and resale. These restrictions generally result from affiliate ownership, M&A activity, and underwriting activity.

Retirement Planning

Evaluating the investing and financing options available to a client. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the client in the form of a financial plan, and then comparing future performance against that plan so that the clients' retirement needs and goals stay on track.

Rollover support, 401k, IRA

A provision of the law governing IRA's that enables a retiree or anyone receiving a lump-sum payment from a pension, profit sharing, or salary reduction plan to transfer the amount into an IRA.

Stocks

Ownership of a corporation indicated by shares, which represent a piece of the corporation's assets and earnings. (See Trading)  Read Before Investing

Stocks Loans

Loans made secured by stock.  Read Before Investing

Super Soes / Select Net

NASDAQ Trading tools that allow for instant execution or preference execution.

Tax Planning

Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer.

Technical Analysis

Security analysis that seeks to detect and interpret patterns in past security prices. Also called chartists or technicians, analysts who use mechanical rules to detect changes in the supply of and demand for a stock, and to capitalize on the expected change.

Trust and Account Services

A fiduciary relationship calling for a trustee to hold the title to assets for the benefit of the beneficiary. The person creating the trust, who may or may not also be the beneficiary, is called the grantor.