Asset Allocation:Ěsset allocation is the process of distributing your investment assets in a manner that is consistent with your investment goals among different classes of investments.

Arbitrage: The simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices.

An accredited accounting firm audits the results and certifies their accuracy. Problems are often buried in the footnotes. It is also an opportunity for management to talk about particular accomplishments. The annual report goes to all shareholders and details the financial results for the past fiscal year.

Annual Report: The SEC requires all publicly traded companies to produce an annual report.

For example, if a company has $10 million in net income and 10 million in outstanding shares, then its EPS is $1.

Annual EPS: The basic EPS from total operations is the bottom line income after all expenses, divided by the weighted average number of common shares outstanding.

Annual Dividend Yield %: Latest Dividend rate divided by the closing price on that latest-dividend date.

Annual Dividend: Dividend, or portion of a company's profit paid to shareholders, divided by the number of common shares outstanding (usually a weighted average of the number of shares outstanding over the reporting period).

Amortization: Accounting method in which an asset's cost is spread out.

An ETF of Alpha 1.5 outperformed its index by 1.5% as predicted by its Beta. Positive alpha means a fund performed greater than its risk would suggest, while negative Alpha means the fund under performed. Alpha reflects the amount by which an ETF outperforms or underperforms based upon its level of risk.

Alpha:Ě statistical measure of performance adjusted for risk.

This plan is also known as a tax-deferred annuity plan since the investments must be annuities.

403(b) Plans: Similar to 401(k) plans, the 403(b) plans are for religious, educational and other non-profit groups.

The deposits and earnings are tax deferred until withdrawn in retirement. In some cases, the employer may match a portion of the employee's contribution. The plan usually has a number of mutual funds where the employee can designate his deduction be applied. The deduction is pre-tax, so current income tax is reduced. It allows employees to have a certain percentage of their salary deducted and invested in the plan.

401(k) Plans: A 401(k) plan is a qualified defined contribution plan offered by employers.It is based on a 60-month historical regression of the return on the stock onto the return on the S&P 500.

60 Month Beta: Coefficient that measures the volatility of a stock's returns relative to the market (S&P 500).12 Month EPS Change: Change from total operations one year ago.% of Institutional: Shareholders Percentage of common stock held by banks, insurance companies and mutual funds with equity assets over $100 million.

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