BROKER: An Individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission.

COMMON STOCK: A class of securities representing ownership and control in a corporation and that may pay dividends as well as appreciate in value

CUSIP NUMBER: A unique nine-character alpha/numeric code assigned to a security by Standard & Poor’s Corporation, which appears on the face of each certificate. The primary use of the number is to expedite the clearance and settle process.

DEALER: Any person or company in the business of buying and selling securities for his or her own account, through a broker or otherwise.

EDGAR: Electronic Data Gathering, Analysis, and Retrieval (EDGAR) is an electronic system developed by the U.S. Securities and Exchange Commission (SEC). EDGAR permits companies to electronically file documents which are required by the SEC.

EQUITY: The ownership interest of stockholders in a company.

HELD: A situation where a security is temporarily not available for trading or subject to a trade halt. Market Makers are not allowed to display quotes of held securities.

INDIVIDUAL INVESTOR: A person who buys or sells securities for his or her own account.

INITIAL PUBLIC OFFERING (IPO): A company’s first sale of stock to the public.

INSTITUTIONAL INVESTOR: A bank, mutual fund, pension fund or other corporate entity that trades securities in large volumes.

LIQUIDITY: The liquidity of a stock is the ease with which the market can absorb volume buying or selling without dramatic fluctuation in price.

MARGIN: An account in which a customer purchases securities on credit extended by a broker/dealer.

NASD: National Association of Securities Dealers - The largest self-regulatory organization for the securities industry in the U.S. Also is responsible for the operation and regulation of NASAQ and other over-the-counter securities markets.

The NASDAQ STOCK MARKET: A major national and international stock market that uses computers and telecommunications for the trading and surveillance of thousands of securities.

PENNY STOCK: Those securities that are not listed on either NASDAQ or a national securities exchange and are priced under $5.

PINK SHEETS: A privately held and owned company whose Electronic Quotation Service provides an Internet-based, real time quotation service for OTC equities and bonds.

PREFERRED STOCK: A security that usually pays a fixed dividend and gives the holder a prior claim on corporate earnings and assets over holders of common stock.

PROXY: Written power of attorney given by a shareholder of a corporation, authorizing someone to vote on his or her behalf at corporate meetings.

PROXY STATEMENT: Material information required by the SEC to be given to a corporation’s stockholders as a prerequisite to solicitation of votes.

SARBANES-OXLEY ACT OF 2002: An Act of Congress passed in 2002 to improve quality and transparency in financial reporting and independent audits and accounting services for public companies, to create a Public Company Accounting Oversight Board, to enhance the standard setting process fro accounting practices, to strengthen the independence of firms that audit public companies, to increase corporate responsibility and the usefulness of corporate financial disclosure, to protect the objectivity and independence of securities analysts and to improve the SEC resources among other things.

SECURITIES: Shares, participations, or other interests in the property or enterprise of an issuer.

SECURITIES AND EXCHANGE COMMISSION (SEC): The primary agency responsible for administrating federal securities laws.

SIGNATURE GUARANTEE: A warranty by the signature guarantor that the endorser is an appropriate person to endorse and thus transfer the security

TRANSFER AGENT: An agent that maintains records of stock and bond owners in order to cancel and issue certificates and to resolve problems from lost, destroyed, or other stolen certificates.