Howard Bryan Bonham, CFA

THE COMPLETE INVESTMENT AND FINANCIAL DICTIONARY

Over 5,000 Definitions,

4,800 Cross-referenced topics

Explanatory Charts and Graphs

Top-rated Investor Web Sites

Copious Examples.

What Leading Professionals Say About Adams Financial Dictionary

“The bull market of the 1990s has spawned a multitude of new investors and new investment products. ‘The Complete Investment and Finance Dictionary’ is a map to guide us all through these changing times.”

--Jack Hyzer, President Hyzer Investment Management Dallas, Texas.

“Howard Bonham is an investment professional in the highest sense of the term. You get it right from the horse’s mouth. I only wish I had authored this book that is so sorely needed by anyone who is a serious investor or a student of the market.‘The Complete Investment and Finance Dictionary’ is a gigantic accomplishment. Everyone should have a copy.”

--Donald W. Hodges, President First Dallas Securities, Hodges Capital Management, Inc. Dallas, Texas

“In our fast-paced investment world, keeping up with the terminology is a necessity. ‘The Complete Investment and Finance Dictionary’ is a tremendous resource that’s needed to stay ahead.“

--Bill Chapman First Vice President – Investment Officer Dain Rauscher San Antonio, Texas

“For those of us who quaver at the mention of regression analysis and zero-beta portfolios but must talk with people who actually understand what they mean from time to time, ‘The Complete Investment and Finance Dictionary’is a book to keep at your fingertips.”

--Kate Thomas, Features Editor Hart’s Energy Markets, Formerly business columnist The Houston Post Houston, Texas

“In this interesting book, Howard Bonham provides a dictionary of investment terms that the average investor is likely to encounter, explaining them with clarity and at times with a light touch. ‘The Complete Investment and Finance Dictionary’ should help to unravel some of the arcane jargon of the financial world and make it understandable to today’s investor.”

--Edmund A. Mennis, CFA Author “How the Economy Works” Palos Verdes Estates, California

“Howard Bonham’s new book, ‘The Complete Investment and Finance Dictionary,’ should be close at hand for any professional, academician, serious investor or student of investing; in short,an excellent investment handbook.”

--Roger H. Jenswold, Chairman/Chief Investment Officer Roger H. Jenswold & Company, Inc. Houston, Texas

"Wall Street uses its own jargon. In a business where communications is absolutely essential, a misunderstanding can be costly. Howard Bonham’s ‘The Complete Investment and Finance Dictionary’ can be a useful reference source to help investors avoid the pitfalls of assuming an understanding of an investment term. The book is well done and useful to investors and brokers.”

--Donald C. Potts President & CEO Capital Institutional Services, Inc. Dallas, Texas

“Very comprehensive! The financial reader can rely on ‘The Complete Investment and Finance Dictionary’ to provide meaning or insight on nearly every investment phrase or concept he or she comes upon. The dictionary should be a big help to the average person seeking to learn more about investing.”

--Jeffrey Beach, CFA Principal, Equity Investments Hanifen, Imhoff Inc. Denver, Colorado

“‘The Complete Investment and Finance Dictionary’ provides investors with keen insights in a compendium of important guides to financial markets.”

--Dillard Spriggs, President Petroleum Analysis Limited New York, New York

“I perused ‘The Complete Investment and Finance Dictionary’with great interest. While there are several financial dictionaries on the market, in today’s complex, global marketplace the focus on clear definitions and examples exclusively aimed at investors makes this one a welcome addition. It is certainly a valuable resource that belongs on the bookshelves of both investment professionals and individual investors...”

--Pavan Sahgal, Editor in Chief Global Investment Technology and Global Investment Magazine New York, New York

Book Reviews

"This compact volume (4.75x7) comprises a financial dictionary in which the entries address key topics in finance, accounting, law, economics, estate planning and business, and how they interact and apply to making effective investment decisions. The book contains 5,000-plus definitions, 4,800 cross-referenced topics, charts and graphs, top-rated investor web sites, and references to online investing, current tax laws, stocks, bonds, mutual funds, IPOs, banking, corporate finance, and venture capital. A useful reference for non-professional investors trying to understand the lingo, as well as for professionals who need a refresher on finance terms outside their specialized interests."Annotation c.

--BOOK NEWS, Inc., Portland, OR (booknews.com)

"Designed as an investment guide as well as a lexicon, the author of this reference book defines and illustrates the use of various analytical tools and points out potential pitfalls in their applications. . . Bonham's dictionary is an immensely useful reference tool."

--FINANCIAL ANALYSTS JOURNAL

Samples from THE COMPLETE INVESTMENT AND FINANCE DICTIONARY

abandonment.

In securities law, the relinquishing of all legal claims, rights, or title to specific securities by the owner’s ignoring their existence or refusing to act in ways expressing ownership of them. Most often this condition occurs in the case of shares left in a brokerage account, where efforts to locate the owners have been unsuccessful. A court order is required to make such securities transferable. Usually such securities revert to the state, under escheat, when declared abandoned. Other types of property besides financial assets are subject to abandonment--real estate, copyrights,leases, patents, contracts and trademarks.

book value per share--common.

The stated or par value of the stock added to the surplus and retained earnings accounts and divided by the total number of common shares. This value is significant when compared with the amount a share costs currently, since it sometimes indicates an undervalued or overvalued market price. In practice, the book value is keyed to the historical cost of a corporation’s resources, while the current market price is keyed to the prospective values of the resources. It must be remembered that every company is a candidate for a sale to new owners, and the book value is the starting point for establishing a worth.

closet indexing.

As a mutual fund portfolio manager, investing most of a fund’s resources in stocks that comprise most of the stocks in a particular stock market index, with a imilar weighting to their weighting in the index, investing the slight remainder in other stocks or more of the index stocks. The fund still charges standard management fees to fund shareholders,despite providing very little active fund portfolio management.

exercise price.

That price at which a share of stock or unit of a commodity underlying an options contract can be bought (called) or sold (put) during a limited period, usually three, six or nine months for stock options. An example would be a contract to sell 100 shares of Whoopee! Corp. for $25 per share for six months. Note that the option itself also has a price, called a premium, when purchased.

gorilla stock.

A stock that combines so many important assets and dominates such lucrative markets that it has become awesome in the eyes of investors, and therefore it represents a company feared by weak managements vulnerable to involuntary buyouts or mergers.

interest.

A charge for the use of money, expressed as a percentage of that money on an annual basis. Usually the charge is higher if a borrower’s financial position is not strong, which compensates the lender for the additional risk of nonpayment or prolonged repayment. This differential is especially prevalent in bond financing. In general, short-term interest charges can be calculated from the following formula: Amount Borrowed x {Duration of loan (Days) / 360 (Days in a Year)] x Interest Rate (%). For example, if $1,000 is borrowed for 30 days at 5% interest, the interest charge would be: $1,000 x (30/360) x .05 or $4.17.

national securities exchanges.

1) The eight U.S. securities exchanges registered and regulated by the Securities and Exchange Commission. See American Stock Exchange, Boston Stock Exchange, Chicago Board of Trade, Chicago Board Options Exchange, Cincinnati Stock Exchange, New York Stock Exchange, Pacific Stock Exchange and Philadelphia Board of Trade. 2) The securities exchanges whose members are distributed throughout the country. Geographically speaking, only the New York Stock Exchange and the American Stock Exchange are truly national in scope.