Derivatives

Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.

Face Value

The cash denomination of the individual debt instrument. It is the amount of money that the holder of a debt instrument receives back from the issuer on the debt instrument’s maturity date. Face value is also referred to as par value or principal.

Escrowed Securities

The outstanding securities of an issuer that are not freely tradable, because they are subject to an escrow agreement that restricts the ability of certain security holders of that issuer from trading or otherwise dealing in those securities until certain conditions are satisfied.

Delivery

The tender and receipt of the underlying commodity or the payment or receipt of cash in the settlement of an open futures contract.

Diluted Earnings (a.k.a. fully diluted earnings)

Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.

Fair Value

The true value of a stock based on criteria of the user’s choosing. A stock is said to be overvalued when the share price exceeds the fair value.

Equities

Common and preferred stocks, which represent a share in the ownership of a company.