DfX Glossary of Terms

Glossary of Financial Terms1.ATM: Automated teller machine that allows you to do your banking transactions by inserting a card2.Balance: the amount of money held or owing in an account3.BC Securities Commission (BCSC): the independent provincial gov’t agency that regulated trading in securities (like stocks and bonds) and protects investors in BC4.Bond: an investment in which a gov’t or company promises to repay money borrowed from investors at a specified time and to pay interest at a specified rate5.Canada Deposit Insurance Corporation (CDIC):a federal gov’t organization that provides insurance to protect money deposited in banks6.Canada Pension Plan (CPP):a Canadian gov’t system in which you pay a % of your earnings toa fund that provides income when you retire7.Collision Coverage: an insurance policy that pays for damage to a car involved in a crash 10. Credit: an amount of money deposited to an account.11. Debit: an amount of money withdrawn from an account.12. Credit Rating: a rating that summarizes your financial background and credit history, used by financial institutions when considering loan apps to decide whether to loan you $ and how much13. Liability: an amount you owe to a creditor (someone who loaned you money)14. Mutual Fund: a pool of mone y that’s invested for a large number of investors by a professional money manager16. Registered Retirement Savings Plan (RRSP):a special type of savings plan registered with the gov’t that allows you to reduce the income tax you pay on money you save for retirement.19. Employment Insurance (EI): a Canadian gov’t system in which you pay a % of your earnings to a fund that provides income fro a limited time if you lose your job20. Gross Income: total income before any taxes or other expenses are deducted21. Inflation: general increase in price of goods and services over time23. Stock: a share in the ownership of a company24. Surplus: the amount by which you income exceeds your expenses (opposite of deficit)25. Bank Card: A card issued by a bank for the purpose of identifying a customer, as at an automated teller machine\26. Credit Card: A plastic card issued by a bank, business, etc., for the purchase of goods or services on credit. Ex. VISA27. Insurance: A practice by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium28. Resume: A brief account of one's professional or work experience and qualifications, often submitted with an employment application。

Glossary of finance termsEnglish – ChineseAAbstract of financial statement 财务报表摘要Account 项目，账户，账，账款，会计科目Account balance 账户余额，账目余额Account classification 账户分类Account number 账号，账户编号Account of assets 资产账户Account payable 应付账款Account payable ledger 应付账款分类账Account payable-non trade 贷款外其他应付款项Account payable ratio 应付账款比率Account payable to purchases ratio 应付账款对进货比率Account receivable ledger 应收账款分类账Accounting 会计，会计学，会计工作Accounting depreciation 会计折旧Accounting document 会计单据，会计单证，会计凭证Accounting equation 会计恒等式，会计等式，会计方程式Accounting information system 会计资讯系统，会计信息系统，计算机会计系统Accounting standard 会计标准，会计准则Accounting valuation 会计计价，会计估价Accrual accounting 应计制会计，权责发生制会计Accrual basis 权责发生制，应计制，责权发生制Accumulated amortization 累积摊销Accumulated depreciation 累积折旧Accumulated income 累积收益Activity ratio 周转率，业务比率Actual inventory 实际库存Added value tax 增值税Adjusted acquisition cost 调整后购置成本，调整后取得成本Aging of account receivable 应收账款的账龄分析Amortizable 可分批偿还的，可摊提的Amortization method 摊销法，摊还法Amortization period 摊还期，折旧期Amortized cost 已摊销成本，摊余成本Analysis by nature of cost item 按费用项目性质分析Analysis of financial statement 财务报表分析Analysis of profit and loss 盈亏分析Analytical accounting 分析性会计Annual financial report 年终财务报表Annual financial statement 年度财务报表Annuity 年金Assets income ratio 资产收益比率Assets liability ratio 资产负债比率，债务比率Assets ratio 资产比率Assets valuation 资产计价Audited financial statement 已审计财务报表Auxiliary book 辅助账簿Auxiliary ledger 辅助分类账Average account payable period 应付账款平均到期日Average account receivable turnover ratio 平均应收账款周转率BBad debt 呆账，坏账Bad debt provision 坏账准备Bad debt ratio 坏账比率Balance sheet 资产负债表，平衡表Balance sheet analysis 资产负债表分析Balance sheet classification and valuation 资产负债表分类和评价Balance sheet-income statement ratio 资产负债表与收益表比率Balance sheet ratio 资产负债表比率Balanced working capital policy 平衡性流动资金政策Benchmark 基准数据，基准Book value 账面价值Book value of common stock 普通股账面价值Book value of preferred stock 优先股账面价值Borrowing 借款，借贷Breakeven analysis 损益平衡分析，保本分析Breakeven sale 损益分界销售额Breakeven sale volumes 保本销售量Business combination 企业联合，企业合并CCapital 资本Capital employed 使用的资本额Capital expenditure 资本性支出Capital structure ratio 资本结构比率Capitalization 资本化，本金化Cash 兑现，付现款，支现金，现金，现款Cash and deposit with bankn account 现金及银行存款账户Cash collection basis 收现金，现金收入制Cash disbursement 现金支出Cash flow 现金流量，现金流转，现金流动Cash flow statement 现金流动表，现金流转表，现金流量表Cash generated by operation 营业所得现金Cash receipts and disbursements statement 现金收支表Certified account 已查证账目Certified financial statement 已证明财务报表，已查证的财务报表，审定的决算表，审定的财务报表Changes in working capital 营运资金的变动Chartered accountant 特许会计师Closing date 结账日期Closing trial balance 结账试算表Collection 托收，收款，无证托收，收账Comparability concept 可比性观念Comparability principle 可比性原则Comparative balance sheet 比较资产负债表Comparative analysis 比较分析Comparative financial statement 比较财务报表Comparative profit and loss statement 比较损益表Completeness 完整性Compound 以复利计算Compulsory audit 强制审计，法定审计Confirmation letter 证询信函Consolidated balance sheet 合并资产负债表Consolidated financial statement 合并财务报表Consolidated income statement 合并收益表Consolidated income tax 合并所得税Consolidated net profit 合并纯利Consolidated profit and loss account 综合损益账Contribution margin 贡献差，贡献毛益Cost accounting 成本会计Cost accounting analysis 成本会计分析Cost-and-benefit analysis 成本及收益分析Credit 信用证，信贷，信用，贷记，税收抵免，债权，贷方，贷项，记入贷方，赊销Credit balance 贷方余额，贷差，结欠Current and accrued assets 本期应计资产Current and accrued liability 本期应计债务Current assets 流动资产Current assets cycle 流动资产循环Current assets to current debt ratio 流动资产与流动负债之比Customer 顾客，客户，买主DDays of average inventory 库存存货平均周转天数Days of turnover 周转天数Days purchases to account payable ratio 采购与应付账款比率Days sales in account receivable 应收账款的销售天数Days sales in inventory 存货可供销售天数Days to sell inventory 存货销售天数Debit 借方余额，借入，借项，借方，借记Debit balance 借方余额Debt net-worth ratio 债务对资本净值比率Decision making 制定决策Deferred assets 递延资产Deferred liability 递延负债，长期负债Deferred tax 递延税，递延税额Defined benefit plan 固定受益额退休金计划Defined contribution plan 固定分担额退休金计划Depreciation 贬值，折旧Depreciation rate 折旧率Detail account 明细帐户Disbursement 支付Disclosure 反映，开示，披露，揭示，公开Discount rate 折现率，折扣率，贴现率Discounted rate of return 折现收益率Dividend 股息，股利Double entry 复式记入，复式分录EEarnings 收益，收入，工资，利润，盈利Elasticity analysis 弹性分析Employee benefit 职工福利费Employee welfare fund 职工福利基金End of year 年末Equity 权益，公平，业主产权，平衡法Equity capital 股本，权益资本，股份Equity ownership 资本所有权，产权所有权Expected cash flow 预计现金流量Expected earnings 预期收益External finance 外来资金Extraordinary expense 特别费用Extraordinary item 非常项目FFair value 公平合理价值Feasibility study 可行性研究Fictious capital 架空资本Final inventory 最后盘存，期末存货Financial accounting 财务会计Financial ratio 财务比率Financial statement 财务报表Financial statement account 财务报表账户Financial statement analysis 财务报表分析Financial strategy 财政战略Finished goods inventory 产成品库存First-in-first-out method 排队的数据结构，先进先出法Fixed assets 固定资产Fixed cost 固定成本Fixed tangible assets 固定有形资产Flow of investment 投资量Flow of operation 营业流程Footnote to financial statement 资产负债表脚注Forecasted financial statement 预测财务报表Forecasted income statement 预测收益表Fundamental of financial accounting 财会基础Furniture and fixture 器具装置Future value 终值GGeneral accepted accounting principles 公认会计原则Gains and losses 得失，利得和损失Gains in market value 市价利得Gains on disposal of fixed assets 变卖固定资产收益Gains or losses on foreign currency conversion 外币兑换损益Gearing ratio 组合率，财务传动比率General accounting 一般会计，普通会计，总会计General and administrative expenses 总务及管理费用General journal 普通日记簿，普通日记账Generally accepted accounting principle 公认会计原则Going concern principle 持续经营原则，继续经营原则Goods 货物Goodwill 商誉Gross 总计，毛重Gross amount 总额Gross earnings 总收益Gross margin 毛益，毛利HHarmonization of accounting 会计的协调Hedge fund 套期交易基金Historical accounting 历史会计Historical cost 过去成本，历史成本Horizontal analysis 横向分析IIlliquid 无流动资金，不能变现Illiquid assets 非流动资金Illiquidity 非流动性Immaterial capital 非实物资本Immediate payment 即付Income 收益，所得Income account 收益账户Income after interest 利息后收益Income after tax 税后收益Income analysis 收益分析Income and retained earnings statement 收益和留存收益表Income before interest and tax 支付利息和税前收益Income collection 收益的收取Income statement analysis 损益表分析Increase of capital 增资Inflation 通货膨胀Inflation accounting 通货膨胀会计Inflow 输入Initial inventory 期初存货Insurance expenses 保险费用Intangible assets 无形资产Intangible fixed assets 无形固定资产Intercompany elimination 公司间账项抵消Intercompany expenses 公司间费用Intercompany profit elimination 公司间利润抵消Intercompany receivable and payable 公司间应收应付款Intercompany sale 公司间内部销售，公司间销售Intercompany transaction 公司间会计事项，公司间内部往来业务Interest 利息Interest paid 付出利息Interim financial statement 期中财务报表，中期财务报表Intermediate goods 半成品Internal audit 内部审计Internal auditor 内部审计师Internal control 内部控制Internal control questionnaire 内部控制问卷，内部控制情况调查表，内部控制情况问卷Internal control system 内部控制制度Internal financing 内部筹资Internal rate method 内部利率法Internal rate of return 内部报酬率Internal rate of return method 内部报酬率法Internal ratio 内部比率Inventory method of depreciation 盘存折旧法Inventory valuation 存货计价，存货评价Investment 投资JJoint venture 合资经营，联合短期投资，合资联营Journal 日记簿，分录账，分录簿KKey figure 关键数字Key indicator 关键指标LLand and building 土地及房屋Last in-first-out method 后进先出法Lease 租赁Lease back 返回租赁Leasing finance 租用融资Ledger 分类账Ledger account 分类账账户Leverage 杠杆作用Leverage effect 举债经营效果Leverage factor 杠杆系数Leverage ratio 举债经营比率，杠杆比率Liability account 负债账户Liability and capital item 负债资本项目Liability and net-worth 负债和净债Liability to net worth ratio 负债对净值比率Liquidation value 清算价额，清算价值Liquidity ratio 流动性比率，变现力比率，偿债能力率Loan 贷款Long-term debt to equity ratio 长期债务对产权的比率Long-term lease 长期租赁Long-term liability 长期负债Long-term loan 长期贷款Long-term rate of interest 长期利率MMake or buy analysis 自产或外购分析Management accounting 管理会计Manipulation of account 篡改账目Manufacturing cost of goods sold 销售品制造成本Manufacturing expenses 制造费用Margin 毛利Margin on variable cost 变动成本毛利Market price basis 市价制Market rate of interest 市场利率Market rate of return 市场风险收益率Materiality 重要性Materiality concept 重要性概念Maturity date 到期日Maximization of profit 利润最大化Merchandise 商品Method of financing 筹资方式Minimum desired rate of return 最低预期报酬率Minimum stock level 最低存货水品Miscellaneous expenses 杂费Monetary item 货币性项目Mortgage 抵押权，抵押NNecessary retained earnings 必要留存收益Negative goodwill 负商誉Negative working capital 负数运转资本，负运用资本Net account receivable 应收账款净额Net assets 净资产，资产净额Net assets value 资产净值Net book value 账面净值Net capital employed 使用资本净值Net cash flow 净现金流量Net current assets 流动资产净额Net earnings 业务净收益，净得工资Net income after income tax 所得税后净收益，扣除所得税后净利Net income to net sale ratio 净收益与销货净额比率Net income to stockholder’s equity ratio 净收益对资产总额权比率Net inflow 净现金流入Net operating loss 营业净损失Net present value 净现值Net present value method 净现值法Net profit margin 净利率Net quick assets 净速动资产，速动资产净额Net realizable value method 可变现净值法，可实现净值法Net realizable value 可变现净值Net working assets 营运资产净额Net working capital 净营运资本Net worth 净值，资本净值Net worth to fixed assets ratio 资本净值对固定资产比率Neutrality 中立性Next in first-out method 次进先出法Nominal amount 面额，名义金额Nominal annual rate 名义年率Nominal interest rate 名义利率Nominal rate 名义利率Non current assets 非流动资产Non current liability 非流动负债Non financial information 非财务信息Non monetary assets 非货币性资产，非现金资产Non operating expenses 营业外费用Non viable project 不可行的投资项目Note payable 应付票款Note receivable 应收票款Notation 债权更新OObjective of accounting 会计目标Objective of financial reporting 财务报告的目标Objectivity principle 客观性原则Obsolete assets 过时资产Obsolete equipment 陈旧设备Obsolete inventory 过时存货Obsolete merchandise 过时商品Old account 旧账Operating breakeven chart 营业损益分界图表Operating leverage 营业杠杆率Operating leverage ratio 营业杠杆比率Operating performance ratio 营业实绩比率，营业绩效比率Outstanding expenses 应付费用Own share 自有股份Owner’s equity to total assets ratio 业主权益总额对资产总额的比率Owner’s equity 业主产权Ownership 所有权PPaid-in capital 缴入资本，缴入成本，实收资本Parent and subsidiary relationship 母子公司关系Parent company 总公司，股权公司，母公司，控股公司Parent firm 母公司Parity clause 平价条款Parity price 对等价格，等值价格，平价Parity quotation 平价牌价Parity ratio 平价率Pay in advance 预付Payroll 发放工薪额，工资表，工资总额Penalty 违约罚金，罚款Pension benefit 抚恤金Performance appraisal 绩效考评，业绩评价Performance evaluation 绩效评价，业绩评价Performance measurement 绩效计量，业绩评价Performance obligation 履行义务的债务Perpetuity 永续年金Petty cash 备用金，零用现金，小额支出，零用金Plant assets 设备资产Position of account 账目情况Position of break-even 损益分歧点的地位Positive goodwill 正商誉，可靠的商誉，良好的商誉Prepaid expenses 预付费用Prepaid interest 预付利息Present value 现值Present value method 现值法Price earnings ratio 价格收益比率Principle of materiality 重要性原则Profit and loss account 损益账户Profit and loss statement 损益表Profit ratio 利润比率Profitability analysis 获利能力分析Provision for depletion 折耗备抵Provision for depreciation 备抵折旧，累计折旧QQuick assets ratio 速动资产比率Quick ratio 速动比率RRate of profit on capital employed 使用资本利润率Rate of return on assets 资产报酬率Rate of return on sale 销货报酬率，销货利润率Rate of return on total assets 资产总额利润率，资产利润率Rate of stock turnover 存货周转率Rate of net profit 纯利率Ratio analysis 比率分析Ratio analysis of stock to sale 存货量与销售量比率分析Ratio for financial analysis 财务分析比率Ratio of account payable to purchase 应付账款对购货比率Ratio of account receivable to net sale 应收账款对净销售额比率Ratio of accumulated depreciation to cost of fixes assets 累积折旧对固定资产成本比率Ratio of bad debt to credit sale 呆账赊账比率Ratio of capital investment 资本投资比率Ratio of cost of sale 销售成本的百分比Ratio of current assets to current liability 流动资产对流动负债比率Ratio of current assets to total assets 流动资产对资产总额比率Ratio of margin 差额比率Ratio of margin on sale to net sales 销货毛利对销货实值比率Ratio of net sales to fixed assets 销售净额与固定资产比率Ratio of net sales to total assets 销售净额对资产总额比率Ratio of operating profit to sales 营业利润对销售额之比Ratio of profit to shareholder’s equity or to sales 利润对股东权益或销售额比率Ratio of quick assets to current liability 速动资产对流动负债比率Ratio of selling and administrative expenses to net sales 推销及管理费用对销售净额比率Raw material inventory 原材料存货Realizable value 可变现价值Realization principle 收益实现原则，实现原则Reconciliation account 调节账户Reconciliation statement 对账单Reconciling the bank account 调节银行存款账Registered capital 注册资本Repair cost 修理成本Replacement cost 重置成本Research and development cost 研究和开发成本Reserve 准备金，准备Reserve for depreciation 折旧准备Reserved capital 准备资金Residual earnings 剩余收益Restatement of balance sheet 资产负债表改编Restatement of income statement 收益表改编Return on investment 投资报酬率Return on stockholder’s equity 股东权益报酬率Revenue realization principle 营业收入实现原则Revenue recognition principle 营业收入确认原则SSale and leaseback 售后租回Semi-finished goods 半成品Short-term assets 短期资产Short-term decision-making 短期决策Short-term liability 短期负债Skeleton balance sheet 骨架式资产负债表Social capital 社会资本Solvency 偿债能力Stockholder’s capital 股东资本Stockholder’s equity 股权，股东权益Straight-line method 使用年限法Straight-line amortization 直线摊销Straight-line depreciation 直线折旧TTangible assets 有形资产Tangible assets to net worth ratio 有形资产对净值比率Taxable income 应税所得Time value of money 货币时间价值Traceability 追溯，可溯性Trial balance 试算表Trial balance after closing 结账后试算表True value rule 真正价值规则Turnover 周转，周转次数Turnover ratio 周转率UUnit of product 产品单位Unit price 单价Unrealized gains or losses 未实现净损益VValuation 评价Valuation method 估价折旧法Variable cost 变动成本Variable cost per unit 单位变动成本Variable margin 变动差益Vertical analysis 纵向分析Volume of sale 销售量WWeighted average unit cost 加权平均单位成本Working capital 营运资本，运转资本。

Glossary of TermsA |B |C |D |E |F |G |H |I |J |K |L |M |N |O |P |Q |R |S |T |U |V |W | ZAAbstract: Used as a noun, the term refers to a short summary or outline of a longer work. As an adjective applied to writing or literary works, abstract refers to words or phrases that name things not knowable through the five senses.Examples of abstracts include the Cliffs Notes summaries of major literary works. Examples of abstract terms or concepts include "idea," "guilt" "honesty," and "loyalty." (Compare with Concrete.)Absurd, Theater of the: See Theater of the AbsurdAbsurdism: See Theater of the AbsurdAccent: The emphasis or stress placed on a syllable in poetry. Traditional poetry commonly uses patterns of accented and unaccented syllables (known as feet) that create distinct rhythms. Much modern poetry uses less formal arrangements that create a sense of freedom and spontaneity.The following line from William Shakespeare's Hamlet:"To be or not to be: that is the question"has five accents, on the words "be," "not," "be," and "that," and the first syllable of "question." (See also Cadence, Foot, Measure, Meter, poem, Poetics, Poetry, Scansion, Sprung Rhythm, Verse, and Versification.)Act: A major section of a play. Acts are divided into varying numbers of shorter scenes. From ancient times to the nineteenth century plays were generally constructed of five acts, but modern works typically consist of one, two, or three acts.Examples of five-act plays include the works of Sophocles and Shakespeare, while the plays of Arthur Miller commonly have a three-act structure. (Compare with Scene.) (See also drama.)Acto: A one-act Chicano theater piece developed out of collective improvisation. Actos were performed by members of Luis Valdez's Teatro Campesino in California during the mid-1960s.Aestheticism: A literary and artistic movement of the nineteenth century. Followers ofthe movement believed that art should not be mixed with social, political, or moral teaching. The statement "art for art's sake" is a good summary of aestheticism. The movement had its roots in France, but it gained widespread importance in England in the last half of the nineteenth century, where it helped change the Victorian practice of including moral lessons in literature.Oscar Wilde is one of the best-known "aesthetes" of the late nineteenth century. (See also Decadents.)Affective Fallacy: (Also known as Sympathetic Fallacy.) An error in judging the merits or faults of a work of literature. The "error" results from stressing the importance of the work's effect upon the reader —that is, how it makes a reader "feel" emotionally, what it does as a literary work —instead of stressing its inner qualities as a created object, or what it "is."The affective fallacy is evident in Aristotle's precept from his Poeticsthat the purpose of tragedy is to evoke "fear and pity" in its spectators.Age of Johnson: (Also known as Age of Sensibility). The period in English literature between 1750 and 1798, named after the most prominent literary figure of the age, Samuel Johnson. Works written during this time are noted for their emphasis on "sensibility," or emotional quality. These works formed a transition between the rational works of the Age of Reason, or Neoclassical period, and the emphasis on individual feelings and responses of the Romantic period.Significant writers during the Age of Johnson included the novelists Ann Radcliffe and Henry Mackenzie, dramatists Richard Sheridan and Oliver Goldsmith, and poets William Collins and Thomas Gray. (Compare with Neoclassicismand romanticism.)Age of Reason: See NeoclassicismAge of Sensibility: See Age of JohnsonAgrarians: A group of Southern American writers of the 1930s and 1940s who fostered an economic and cultural program for the South based on agriculture, in opposition to the industrial society of the North. The term can refer to any group that promotes the value of farm life and agricultural society.Members of the original Agrarians included John Crowe Ransom, Allen Tate, and Robert Penn Warren.Alexandrine Meter: See MeterAllegory: A narrativetechnique in which characters representing things or abstractideas are used to convey a message or teach a lesson. Allegory is typically used to teach moral, ethical, or religious lessons but is sometimes used for satiric or political purposes.Examples of allegorical works include Edmund Spenser's The Faerie Queene and John Bunyan's The Pilgrim's Progress.(See also Exemplumand Fable.)Alliteration: A poetic device where the first consonant sounds or any vowel sounds in words or syllables are repeated.The following description of the Green Knight from the anonymous Sir Gawain and the Green Knight gives an example of alliteration:And in guise all of green, the gear and the man:A coat cut close, that clung to his sidesAn a mantle to match, made with a liningOf furs cut and fitted — the fabric was noble....(Compare with Assonanceand rhyme.) (See also poem, Poetics, Poetry, Verse, and Versification.)Allusion: A reference to a familiar literary or historical person or event, used to make an idea more easily understood.For example, describing someone as a "Romeo" makes an allusion to William Shakespeare's famous young lover in Romeo and Juliet.Amerind Literature: The writing and oral traditions of Native Americans. Native American literaturewas originally passed on by word of mouth, so it consisted largely of stories and events that were easily memorized. Amerind proseis often rhythmic like Poetry because it was recited to the beat of a ceremonial drum.Examples of Amerind literature include the autobiographical Black Elk Speaks, the works of N. Scott Momaday, James Welch, and Craig Lee Strete, and the poetry of Luci Tapahonso.Analogy: A comparison of two things made to explain something unfamiliar through its similarities to something familiar, or to prove one point based on the acceptedness of another. Similes and metaphors are types of analogies.Analogies often take the formof an extended simile, as in William Blake's aphorism: "As the caterpillar chooses the fairest leaves to lay her eggs on, so the priest lays his curse on the fairest joys." (Compare with Simileand Metaphor.)Anapest: See FootAngry Young Men: A group of British writers of the 1950s whose work expressed bitterness and disillusionment with society. Common to their work is an anti-hero who rebels against a corrupt social order and strives for personal integrity.The term has been used to describe Kingsley Amis, John Osborne, Colin Wilson, John Wain, and others.Antagonist: The major characterin a narrativeor dramawho works against the heroor protagonist.An example of an evil antagonist is Richard Lovelace in Samuel Richardson's Clarissa, while a virtuous antagonist is Macduff in William Shakespeare's Macbeth.(Compare with protagonist.) (See also anti-hero, conflict.)Anthropomorphism: The presentation of animals or objects in human shape or with human characteristics. The term is derived from the Greek word for "human form."The Fables of Aesop, the animated films of Walt Disney, and Richard Adams's Watership Downfeature anthropomorphic characters. (Compare with Personification.) Anti-hero: A central characterin a work of literature who lacks traditional heroic qualities such as courage, physical prowess, and fortitude. Anti-heros typically distrust conventional values and are unable to commit themselves to any ideals. They generally feel helpless in a world over which they have no control. Anti-heroes usually accept, and often celebrate, their positions as social outcasts.A well-known anti-hero is Yossarian in Joseph Heller's novel Catch-22.(Compare with Antagonist, Hero, and Protagonist.)Antimasque: See MasqueAnti-novel: A term coined by French critic Jean-Paul Sartre. It refers to any experimental work of fictionthat avoids the familiar conventions of the novel. The anti-novel usually fragments and distorts the experience of its characters, forcing the reader to construct the reality of the story from a disordered narrative.The best-known anti-novelist is Alain Robbe-Grillet, author of Le voyeur.Antithesis: The antithesis of something is its direct opposite. In literature, the use of antithesis as a figure of speech results in two statements that show a contrast through the balancing of two opposite ideas. Technically, it is the second portion of the statement that is defined as the "antithesis"; the first portion is the "thesis."An example of antithesis is found in the following portion of Abraham Lincoln's "Gettysburg Address"; notice the opposition between the verbs "remember" and "forget" and the phrases "what we say" and "what they did": "The world will little note nor long remember what we say here, but it can never forget what they did here."Apocrypha: Writings tentatively attributed to an author but not proven or universally accepted to be their works. The term was originally applied to certain books of the Bible that were not considered inspired and so were not included in the "sacred canon."Geoffrey Chaucer, William Shakespeare, Thomas Kyd, Thomas Middleton, and John Marston all have apocrypha. Apocryphal books of the Bible include the Old Testament's Book of Enoch and New Testament's Gospel of Thomas.Apollonian and Dionysian: The two impulses believed to guide authors of dramatic tragedy. The Apollonian impulse is named after Apollo, the Greek god of light and beauty and the symbol of intellectual order. The Dionysian impulse is named after Dionysus, the Greek god of wine and the symbol of the unrestrained forces of nature. The Apollonian impulse is to create a rational, harmonious world, while the Dionysian is to express the irrational forces of personality.Friedrich Nietzche uses these terms in The Birth of Tragedyto designate contrasting elements in Greek tragedy. (Compare with classicismand romanticism.) Apostrophe: A statement, question, or request addressed to an inanimate object or concept or to a nonexistent or absent person.Requests for inspiration from the musesin poetry are examples of apostrophe, as is Marc Antony's address to Caesar's corpse in William Shakespeare's Julius Caesar: "O, pardon me, thou bleeding piece of earth,That I am meek and gentle with these butchers!...Woe to the hand that shed this costly blood!..."(Compare with Monologueand Soliloquy.)Apprenticeship Novel: See BildungsromanArchetype: The word archetype is commonly used to describe an original pattern or model from which all other things of the same kind are made. This term was introduced to literary criticismfrom the psychology of Carl Jung. It expresses Jung's theory that behind every person's "unconscious," or repressed memories of the past, lies the "collective unconscious" of the human race: memories of the countless typical experiences of our ancestors. These memories are said to prompt illogical associations that trigger powerful emotions in the reader. Often, the emotional process is primitive,even primordial. Archetypes are the literary images that grow out of the "collective unconscious." They appear in literatureas incidents and plots that repeat basic patterns of life. They may also appear as stereotyped characters.Examples of literary archetypes include themes such as birth and death and characters such as the Earth Mother.Argument: The argument of a work is the author's subject matter or principal idea.Examples of defined "argument" portions of works include John Milton's Arguments to each of the books of Paradise Lost and the "Argument" to Robert Herrick's Hesperides.Aristotelian Criticism: Specifically, the method of evaluating and analyzing tragedy formulated by the Greek philosopher Aristotle in his Poetics.More generally, the term indicates any form of criticismthat follows Aristotle's views. Aristotelian criticism focuses on the form and logical structure of a work, apart from its historical or social context, in contrast to "Platonic Criticism," which stresses the usefulness of art. Adherents of New Criticism including John Crowe Ransom and Cleanth Brooks utilize and value the basic ideas of Aristotelian criticism for textual analysis. (Compare with Platonic Criticism.) (See also catharsis, New Criticism.)Art for Art's Sake: See Aestheticism.Aside: A comment made by a stage performer that is intended to be heard by the audiencebut supposedly not by other characters.Eugene O'Neill's Strange Interlude is an extended use of the aside in modern theater.Assonance: The repetition of similar vowel sounds in Poetry.The following lines from Gerald Manley Hopkins's "God's Grandeur" contain several patterns of assonance:The world is charged with the grandeur of God.It will flame out, like shining from shook foil;It gathers to a greatness, like the ooze of oilCrushed. Why do men then now not reck his rod?(Compare with Alliteration, Dissonance, and rhyme.)Audience: The people for whom a piece of literatureis written. Authors usually write with a certain audience in mind, for example, children, members of a religious or ethnic group, or colleagues in a professional field. The term "audience" also applies to the people who gather to see or hear any performance, including plays, Poetryreadings, speeches, and concerts.Jane Austen's parody of the gothic novel, Northanger Abbey, was originally intended for (and also pokes fun at) an audience of young and avid female gothic novel readers.Autobiography: A connected narrative in which an individual tells his or her life story.Examples include Benjamin Franklin's Autobiography and Henry Adams's The Education of Henry Adams.(Compare with Biography.) (See also Diaryand Memoirs.)Automatic Writing: Writing carried out without a preconceived plan in an effort to capture every random thought. Authors who engage in automatic writing typically do not revise their work, preferring instead to preserve the revealed truth and beauty of spontaneous expression.Automatic writing was employed by many of the Surrealist writers, notably the French poetRobert Desnos. (See also Surrealism.)Avant-garde: A French term meaning "vanguard." It is used in literary criticismto describe new writing that rejects traditional approaches to literaturein favor of innovations in style or content.Twentieth-century examples of the literary avant-gardeinclude the Black Mountain Schoolof poets, the Bloomsbury Group, and the Beat Movement.BBallad: A short poem that tells a simple story and has a repeated refrain. Ballads were originally intended to be sung. Early ballads, known as folk ballads, were passed down through generations, so their authors are often unknown. Later ballads composed by known authors are called literary ballads.An example of an anonymous folk ballad is "Edward," which dates from the Middle Ages. Samuel Taylor Coleridge's "The Rime of the Ancient Mariner" and John Keats's "La Belle Dame sans Merci" are examples of literary ballads. (Compare with Corrido and Oral Transmission.)Baroque: A term used in literary criticism to describe literature that is complex or ornate in style or diction. Baroque works typically express tension, anxiety, and violent emotion. The term "Baroque Age" designates a period in Western European literature beginning in the late sixteenth century and ending about one hundred years later. Works of this period often mirror the qualities of works more generally associated with the label "baroque" and sometimes feature elaborate conceits. Examples of Baroque works include John Lyly's Euphues: The Anatomy of Wit, Luisde Gongora's Soledads, and William Shakespeare's As You Like It.Baroque Age: See BaroqueBaroque Period: See BaroqueBeat Generation: See Beat MovementBeat Movement: A period featuring a group of American poets and novelists of the 1950s and 1960s — including Jack Kerouac, Allen Ginsberg, Gregory Corso, William S. Burroughs, and Lawrence Ferlinghetti —who rejected established social and literary values. Using such techniques as stream of consciousness writing and jazz-influenced free Verse and focusing on unusual or abnormal states of mind —generated by religious ecstasy or the use of drugs — the Beat writers aimed to create works that were unconventional in both form and subject matter.Kerouac's On the Roadis perhaps the best-known example of a Beat Generation novel, and Ginsberg's Howlis a famous collection of Beat Poetry.Beat Poets: See Beat MovementBeats, The: See Beat MovementBelles-lettres: A French term meaning "fine letters" or "beautiful writing." It is often used as a synonym for literature, typically referring to imaginative and artistic rather than scientific or expository writing. Current usage sometimes restricts the meaning to light or humorous writing and appreciative essays about literature.Lewis Carroll's Alice in Wonderland epitomizes the realm of belles-lettres.Bildungsroman: (Also known as Apprenticeship Novel, Coming of Age Novel, Erziehungsroman, or Kunstlerroman.) A German word meaning "novel of development." The bildungsromanis a study of the maturation of a youthful character, typically brought about through a series of social or sexual encounters that lead to self-awareness. Bildungsroman is used interchangeably with erziehungsroman,a novel of initiation and education. When a bildungsroman is concerned with the development of an artist (as in James Joyce's A Portrait of the Artist as a Young Man), it is often termed a kunstlerroman.Well-known bildungsromane include J. D. Salinger's The Catcher in the Rye, Robert Newton Peck's A Day No Pigs Would Die, and S. E. Hinton's The Outsiders. Biography: A connected narrative that tells a person's life story. Biographies typically aim to be objective and closely detailed. James Boswell's The Life of SamuelJohnson,LL.D is a famous example of the form. (Compare with Autobiography and Memoirs.Black Aesthetic Movement: (Also known as Black Arts Movement.) A period of artistic and literary development among African Americans in the 1960s and early 1970s. This was the first major African-American artistic movement since the Harlem Renaissance and was closely paralleled by the civil rights and black power movements. The black aesthetic writers attempted to produce works of art that would be meaningful to the black masses. Key figures in black aesthetics included one of its founders, poet and playwright Amiri Baraka, formerly known as LeRoi Jones; poet and essayist Haki R. Madhubuti, formerly Don L. Lee; poet and playwright Sonia Sanchez; and dramatist Ed Bullins.Works representative of the Black Aesthetic Movement include Amiri Baraka's play Dutchman, a 1964 Obie award-winner; Black Fire: An Anthology of Afro-American Writing,edited by Baraka and playwright Larry Neal and published in 1968; and Sonia Sanchez's poetry collection We a BaddDDD People, published in 1970.Black Arts Movement: See Black Aesthetic MovementBlack Comedy: See Black HumorBlack Humor: (Also known as Black Comedy.) Writing that places grotesque elements side by side with humorous ones in an attempt to shock the reader, forcing him or her to laugh at the horrifying reality of a disordered world.Joseph Heller's novel Catch-22 is considered a superb example of the use of black humor. Other well-known authors who use black humor include Kurt V onnegut, Edward Albee, Eugene Ionesco, and Harold Pinter.Black Mountain School: Black Mountain College and three of its instructors —Robert Creeley, Robert Duncan, and Charles Olson —were all influential in projective verse, so poets working in projective verse are now referred as members of the Black Mountain school.The Black Mountain Review published much of the work of Black Mountain school poets.Blank Verse: Loosely, any unrhymed poetry, but more generally, unrhymed iambic pentameter verse(composed of lines of five two-syllable feet with the first syllable accented, the second unaccented). Blank verse has been used by poets since the Renaissance for its flexibility and its graceful, dignified tone.John Milton's Paradise Lostis in blank verse, as are most of William Shakespeare's plays.(See also Accent, Foot, Measure, and Meter.)Bloomsbury Group: A group of English writers, artists, and intellectuals who heldinformal artistic and philosophical discussions in Bloomsbury, a district of London, from around 1907 to the early 1930s. The Bloomsbury Group held no uniform philosophical beliefs but did commonly express an aversion to moral prudery and a desire for greater social tolerance.At various times the circle included Virginia Woolf, E. M. Forster, Clive Bell, Lytton Strachey, and John Maynard Keynes.Bon Mot: A French term meaning "good word." A bon mot is a witty remark or clever observation.Charles Lamb and Oscar Wilde are celebrated for their witty bon mots. Two examples by Oscar Wilde stand out: (1) "All women become their mothers. That is their tragedy. No man does. That's his." (2) "A man cannot be too careful in the choice of his enemies."Breath Verse: See Projective VerseBurlesque: Any literary work that uses exaggeration to make its subject appear ridiculous, either by treating a trivial subject with profound seriousness or by treating a dignified subject frivolously. The word "burlesque" may also be used as an adjective, as in "burlesque show," to mean "striptease act."Examples of literary burlesque include the comedies of Aristophanes, Miguel de Cervantes's Don Quixote,, Samuel Butler's poem "Hudibras," and John Gay's play The Beggar's Opera.(Compare with Parody.)CCadence: The natural rhythm of language caused by the alternation of accented and unaccented syllables. Much modern Poetry—notably free Verse —deliberately manipulates cadence to create complex rhythmic effects.James Macpherson's "Ossian poems" are richly cadenced, as is the poetry of the Symbolists, Walt Whitman, and Amy Lowell. (Compare with Meter.)Caesura: A pause in a line of Poetry, usually occurring near the middle. It typically corresponds to a break in the natural rhythm or sense of the line but is sometimes shifted to create special meanings or rhythmic effects.The opening line of Edgar Allan Poe's "The Raven" contains a caesura following "dreary": "Once upon a midnight dreary, while I pondered weak and weary...." (Compare with Cadence.)Canzone: A short Italian or Provencal lyric poem, commonly about love and often set to music. The canzonehas no set form but typically contains five or six stanzas made up of seven to twenty lines of eleven syllables each. A shorter, five- to ten-line "envoy," or concluding stanza, completes the poem.Masters of the canzone form include Petrarch, Dante Alighieri, Torquato Tasso, andGuido Cavalcanti.Carpe Diem: A Latin term meaning "seize the day." This is a traditional theme of Poetry, especially lyrics. A carpe diem poem advises the reader or the person it addresses to live for today and enjoy the pleasures of the moment.Two celebrated carpe diem poems are Andrew Marvell's "To His Coy Mistress" and Robert Herrick's poem beginning "Gather ye rosebuds while ye may...."Catharsis: The release or purging of unwanted emotions — specifically fear and pity — brought about by exposure to art. The term was first used by the Greek philosopher Aristotle in his Poeticsto refer to the desired effect of tragedy on spectators.A famous example of catharsis is realized in Sophocles' Oedipus Rex,when Oedipus discovers that his wife, Jacosta, is his own mother and that the stranger he killed on the road was his own father. (See also Aristotelian Criticism.)Celtic Renaissance: (Also known as Celtic Twilight.) A period of Irish literary and cultural history at the end of the nineteenth century. Followers of the movement aimed to create a romantic vision of Celtic myth and legend. The most significant works of the Celtic Renaissance typically present a dreamy, unreal world, usually in reaction against the reality of contemporary problems.William Butler Yeats's The Wanderings of Oisinis among the most significant works of the Celtic Renaissance. (Compare with Irish Literary Renaissanceand romanticism.)Celtic Twilight: See Celtic RenaissanceCharacter: Broadly speaking, a person in a literary work. The actions of characters are what constitute the plot of a story, novel, or poem. There are numerous types of characters, ranging from simple, stereotypical figures to intricate, multifaceted ones. In the techniques of Anthropomorphismand personification, animals —and even places or things — can assume aspects of character. "Characterization" is the process by which an author creates vivid, believable characters in a work of art. This may be done in a variety of ways, including (1) direct description of the character by the narrator; (2) the direct presentation of the speech, thoughts, or actions of the character; and (3) the responses of other characters to the character. The term "character" also refers to a form originated by the ancient Greek writer Theophrastus that later became popular in the seventeenth and eighteenth centuries. It is a short essay or sketch of a person who prominently displays a specific attribute or quality, such as miserliness or ambition.Notable characters in literature include Oedipus Rex, Don Quixote de la Mancha, Macbeth, Candide, Hester Prynne, Ebenezer Scrooge, Huckleberry Finn, Jay Gatsby, Scarlett O'Hara, James Bond, and Kunta Kinte.Characterization: See CharacterChorus: In ancient Greek drama, a group of actors who commented on and interpreted the unfolding action on the stage. Initially the chorus was a major component of the presentation, but over time it became less significant, with its numbers reduced and its role eventually limited to commentary between Acts. By the sixteenth century the chorus — if employed at all — was typically a single person who provided a prologue and an epilogue and occasionally appeared between acts to introduce or underscore an important event.The chorus in William Shakespeare's Henry Vfunctions in this way. Modern dramas rarely feature a chorus, but T. S. Eliot's Murder in the Cathedral and Arthur Miller's A View from the Bridge are notable exceptions. The Stage Manager in Thornton Wilder's Our Town performs a role similar to that of the chorus.Chronicle: A record of events presented in chronological order. Although the scope and level of detail provided varies greatly among the chronicles surviving from ancient times, some, such as the Anglo-Saxon Chronicle,feature vivid descriptions and a lively recounting of events. During the Elizabethan Age, many dramas —appropriately called "chronicle plays" — were based on material from chronicles. Many of William Shakespeare's dramas of English history as well as Christopher Marlowe's Edward II are based in part on Raphael Holinshead's Chronicles of England, Scotland, and Ireland.Classical: In its strictest definition in literary criticism, classicism refers to works of ancient Greek or Roman literature. The term may also be used to describe a literary work of recognized importance (a "classic") from any time period or literature that exhibits the traits of classicism.Classical authors from ancient Greek and Roman times include Juvenal and Homer. Examples of later works and authors now described as classical include French literature of the seventeenth century, Western novels of the nineteenth century, and American fiction of the mid-nineteenth century such as that written by James Fenimore Cooper and Mark Twain.Classicism: A term used in literary criticism to describe critical doctrines that have their roots in ancient Greek and Roman literature, philosophy, and art. Works associated with classicism typically exhibit restraint on the part of the author, unity of design and purpose, clarity, simplicity, logical organization, and respect for tradition. Examples of literary classicism include Cicero's prose, the dramas of Pierre Corneille and Jean Racine, the Poetry of John Dryden and Alexander Pope, and the writings of J. W. von Goethe, G. E. Lessing, and T. S. Eliot.Climax: The turning point in a narrative, the moment when the conflict is at its most intense. Typically, the structure of stories, novels, and plays is one of rising action, in which tension builds to the climax, followed by falling action, in which tension lessens as the story moves to its conclusion.。

-A-ACTAdvance Corporation TaxADRAmerican Depository Receipt. A financial asset issued by a US Depository Bank representing shares in a non-US company held by them. These receipts are traded in the US.AGMThe annual meeting of a company which is required by law.AIMAlternative Investment MarketAMEXAmerican Stock Exchange. A private, not-for-profit corporation located in New York City, which handles approximately one-fifth of all securities trades within the United States.APTAutomated Pit TradingATMAt the Money. When the price of the underlying transaction equals the strike price of the option.ASBAccounting Standards BoardASDAActual Settlement Date AccountingAbandonThe act of not exercising or selling an option before its expiration.AccretingA range of instruments where the notional amount on which the instrument is based increases during its life. This may include swaps, swaptions, floors & collars.Accrual accountingA method of reporting income when earned and expenses when incurred, as opposed to reporting income when received and expenses when paid. Accrued InterestInterest earned on a bond since the previous interest payment and not yet paid to the bondholder.Accumulator FundsAny income generated by the fund is reinvested in the fund.Acid-Test RatioA measure of a corporation's liquidity, calculated by adding cash, cash equivalents, and accounts and notes receivable, and dividing the result by total current liabilities. It is a more stringent test of liquidity than current ratio.Acquisition AccountingMethod of accounting for a takeover in which the pre- acquisition profits of the acquired company are excluded from the reported profits [and reserves] of the group.Acquisition FeeThe total charges and commissions paid by any party in connection with the selection or purchase of property by a direct participation program. Included in the total are any real estate commission, acquisition expense, development fee, and selection fee or construction fee of a similar nature. The fee is added to the basis in the asset for the purpose of depreciation and calculating gain or loss.Adjusted BasisThe value attributed to an asset or security that reflects any deductions taken on or capital improvements to, the asset or security. Adjusted basis is used to compute the gain or loss on the sale or other disposition of the asset or security.Adjusted BetaThe estimation of a securities future beta calculated from historical data, but modified by the assumption that the securities real beta will move over time to the market average of 1.Adjusted Gross Income (AGI)Earned income plus net passive income, portfolio income and capital gains.Advance/Decline LineA technical analysis tool representing the total of differences between advances and declines of security prices. The advance/decline line is considered the best indicator of market movement as a whole.Agent(1)An individual or firm that effects securities transactions for theaccounts of others.(2) A person licensed as a life insurance agent.(3) A securities salesperson who represents a broker-dealer or issuerwhen selling or trying to sell securities to the investing public; thisindividual is considered an agent whether he actually receives or simply solicits orders.Alligator SpreadA combination of both put & call options, which generates so much commission for the broker that the trade is unprofitable for the investor.AlphaThe difference between a securities expected return and its real return.American Style OptionAn option that may be exercised at any time up until expiry.Amortisation(1)The paying off of debt in regular instalments over a period of time.(2)The rateable deduction of certain capitalised expenditures over aspecified period of time.AmortisingA range of instruments where the notional amount on which the instrument is based decreases during its life – used for depreciating intangible assets for tax purposes. These can include swaps, swaptions, floors & collars.Annuity SwapAn interest rate swap where irregular cashflows are exchanged for a stream of regular cashflows of the equivalent present value.AnnuityA contract that guarantees a fixed or variable annual payment.ApportionmentThe allocation of stock to a buyerAppreciationThe increase in the value of an asset over a period of time.ArbitrageThe simultaneous purchase and sale of the same or related securities to take advantage of a market inefficiency.Arbitrage Pricing TheoryAn equilibrium model of asset pricing stating the expected return on a security is a linear function of the securities function to various common factors.AskThe price at which a market maker is prepared to sell a security – also called the offer price.Asset(1)Anything that an individual or a corporation owns.(2) A balance sheet item expressing what a corporation owns.Asset AllocationThe optimal apportioning of investment funds amongst categories of assets.Asset Backed SecuritiesNotes or Bonds backed by assets or structured cashflows receivable.Asset-Liability ManagementThe process of matching a level of debt to an amount of assets. Carried out by financial institutions when matching the maturity of their deposits with the length of their loan commitments as protection against changes in interest rates.Asset StrippingAcquiring a company and selling off its most valuable assetsAsset SwapA swap in which a counterparty exchanges a stream of cash flows from an asset into a different stream. The most common asset swap is the conversion of high yielding fixed rate bonds into synthetic floating rate assets with a Libor + return.AssignmentThe sale of a swap to a new counterparty or buyout of a swap by a new counterparty.At-the-Opening OrderAn order that specifies it is to be executed at the opening of the market or of trading in that security or else it is to be cancelled. The order does not have to be executed at the opening price.Auction IssueA method of issuing securities – subscribers bid for stock and pay the price they bid.Auction MarketA market in which buyers enter competitive bids and sellers enter competitive offers simultaneously. The NYSE is an auction market. Authorised StockThe number of shares of stock that a corporation is permitted to issue. This number of shares is stipulated in the corporation's approved charter, and may be changed by a vote of the corporation's stockholders. Average PriceA step in determining a bond's yield to maturity. A bond's average price is calculated by adding its face value to the price paid for it and dividing the result by two.-B-BBAIRS TermsStandard terms for shorter-term interbank interest rate swaps, provided by the British Bankers Association.BDBroker Dealer. A member firm, acting as agent or as principal, who is not a registered market maker in the security in which they are dealing.BETBook entry transfer. The transfer of ownership of a security by means of a computer entry. This electronic recording of the asset may be in immobilised or dematerialised form.BOTCCBoard of Trade Clearing CorporationBalance of Payments (BOP)An international accounting record of all transactions made by one particular country with others during a certain time period; it compares the amount of foreign currency the country has taken in to the amount of its own currency it has paid out.Balance of TradeThe largest component of a country's balance of payments; it concerns the export and import of merchandise (not services). Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy.Balance SheetA statement of the assets and liabilities of a company at a particular point in time – normally at the end of its financial year.Balance Sheet EquationA formula stating that a corporation's assets equals the sum of its liabilities plus shareholders' equity.Balloon MaturityA repayment schedule for an issue of bonds wherein a large number of the bonds come due at a prescribed time (normally at the final maturity date);a type of serial maturity.BargainA transaction to buy or sell securities on a stock exchange.Barrier OptionAlso called a knock-out, knock-in or a trigger option. This is a derivative that is path dependent and is activated or cancelled if the underlying reaches a set level.BasisThe difference between the cash price of the underlying security and the nearest dated future.Basis PointOne hundredth of 1% - i.e. 50bp = .5%Basis RiskThe risk that the value of a futures contract does not move in line with the underlying exposure – also the risk of movement between two interest rate profiles [e.g. LIBOR vs. Fed Funds].Basis SwapA swap from one floating rate to another.Basis Trading FacilityA process whereby futures and the underlying can be traded simultaneously to buy/sell the basis.BearOne who expects market prices to fall.Bear MarketA market, in which prices of a certain group of securities are falling or are expected to fall. See also bull market.Bear RaidConcerted selling of an instrument so that it can be repurchased at a lower level.Bearer ShareA security where possession is taken as proof of ownership as the certificate does not contain the name of the registered owner.Bearer BondA bond with coupons attached, giving the holder the right to receive interest payments. These coupons [talons] should be submitted after a specified date to receive these payments.Beneficial OwnerThe owner of a security who is entitled to the benefits of that security. The beneficial and legal owner may be different.Best ExecutionDealing at the best possible price in the required size.Beta CoefficientA means of measuring the volatility of a security or portfolio of securities in comparison with the market as a whole. A beta of 1 indicates that the security's price will move with the market. A beta greater than 1 indicates that the security's price will be more volatile than the market. A beta less than 1 means that it will be less volatile than the market.Bid PriceThe price at which a market maker or dealer will buy a security.Binary OptionA discontinuous option that pays out a fixed amount if the underlying reaches the strike price.Black – Scholes ModelA model used to value options, which calculates a theoretical ‘fair value’ by constructing an instantaneously riskless hedge [i.e. where performance exactly mirrors the option payout]. The portfolio of option and hedge can then be assumed to earn the risk free rate of return. The model takes 5 major factors into account: the risk free interest rate, the strike price of the option, the price of the underlying, the option’s maturity and the assumed volatility.Blue Chip StockThe equity issues of financially stable well-established companies that have demonstrated their ability to pay dividends in both good and bad times.Board LotA unit of trading e.g. 1000 sharesBondA negotiable debt security with a maturity at issue of more than one year.Bond BasisSwap rate based on a 365 day year in accordance with the accrual conventions in the US Treasury Bond market.Bond RatingAn evaluation of the possibility of default by a bond issuer, based on an analysis of the issuer's financial condition and profit potential. Bond rating services are provided by, among others, Standard & Poor's and Moody's Investors Service.Bond ValueThe market value a convertible bond would have if it were a straight [fixed rate] bond with no conversion rights.Bonus IssueA free issue of new shares by a company to existing shareholders, in proportion to their existing holdings – can also be called a scrip or capitalisation issue.BootstrappingA method used to derive the zero-coupon yield curve.Brady BondsEmerging market debt, partly securitised by US Treasuries, issued when bank loans are exchanged for bonds.Breakeven/PaybackA ratio [expressed in years] that compares the size of a conversion premium with the difference between the yield on a convertible security and the dividend yield on the shares into which it can be converted.Breakeven Point(1)The point at which gains equal losses.(2)The market price that a stock must reach for an option buyer toavoid a loss if he - exercises. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.BrokerOne who acts as an agent for a client when buying & selling securities.BullOne who thinks that prices will rise.Bull MarketA market in which prices of a certain group of securities are rising or are expected to rise. See also bear market.Business CycleA predictable long-term pattern of alternating periods of economic growth and decline. The cycle passes through four stages: expansion, peak, contraction, and trough.Butterfly SpreadThe sale of an at-the-money straddle and the simultaneous purchase of an out-of-the-money strangle.-C-CADCash against delivery/documentsCADCapital Adequacy Directive – the requirement for banks & financial services organisations to have sufficient capital to carry out their activities.CBOEChicago Board Options Exchange.CBOT [Chicago Board of Trade]The oldest commodities exchange in the United States; established in 1886. The exchange lists agricultural commodity futures such as corn, oats and soybeans, in addition to more recent innovations as GNMA mortgages and the Nasdaq 100 Index.CCSSCrest Courier & Sorting ServiceCDCertificate of Deposit – a certificate issued by a bank against a short-term deposit.CGOCentral Gilts Office – book entry transfer system for Gilts, operated by the Bank of EnglandCGTCapital Gains TaxCFTCCommodity Futures Trading CommissionCJACriminal Justice Act 1993CMEChicago Mercantile ExchangeCRESTCertificateless Register of Electronic Stock & Share TransferCRRCounterparty Risk RequirementCSCash settlement.CSDCentral Securities Depository. Their primary function is to immobilise or dematerialise securities thus assuring most transactions are processed in book entry form.CSDAContractual Settlement Date Accounting. Global Custodians in certain conditions and in developed markets will give clients cash value for securities traded irrespective of whether they have received the money themselves.CSPCentral Stock PaymentCUSIPCommittee on Uniform Securities Identical ProceduresCalendar SpreadBuying two futures or options on the same security but with different maturities.Callable SwapA swap that gives the fixed rate payer an option to cancel the swap agreement, usually on one specific future date.Call OptionAn option that gives the right [but not the obligation] to buy a specific quantity of the underlying instrument at a predetermined price, on or before a fixed date.CapA contract in which the seller agrees to pay the buyer the difference between a reference rate and an agreed strike rate as in the case when the reference exceeds the strike. This is done in return for annuity payments or a one off premium.Capital Asset Pricing Model [CAPM]Represents the relationship between expected risk and expected return –states that the return on an asset or security should be equal to the risk-free return + a premium.Capital EmployedMedium & long term finance in a company = debt finance + shareholders fundsCapital Gain/LossProfit or loss resulting from the sale of an asset, such as a securityCapitalisation IssueSee bonus issueCapital MarketsFinancial markets in which instruments with a term to maturity, at issue, are issued and traded.Cash FlowThe money received by a business minus the money paid out. Cash flow is also equal to net income plus depreciation or depletion.Cash MarketThe underlying currency or market where the instruments that relate to derivatives are bought and sold.Cash SettlementA security dealt for settlement the business day after dealing.CEDELAn International Central Securities Depository & clearing system based in Luxembourg and owned by a consortium of banks.CertificatedSecurities represented in the form of paper certificatesChinese WallA barrier to the flow of information between departments in the same organisation, normally between the corporate finance/M&A departments of financial institutions and the rest of the institutionsCircuit BreakerA suspension of trading in a particular market in times of high volatilityCity CodeA rule book for the conduct of take-overs and mergers in the UK.City PanelPanel on Take-overs & Mergers. A non-statutory body, which enforces the take-over, code in the UK.Class 1 TransactionA deal whereby a company’s assets/profits/shares could change by 25% or moreClass 2 TransactionA deal whereby a company’s assets/profits/shares could change by 5% or more.Clean PriceThe market price of a bond, excluding accrued interest – the price at which bonds are traded in the market.Clearing HouseAn organisation responsible for the reconciliation of sales and purchases, organising settlements & margins and providing guarantees to market users in the event of default.CollarThe simultaneous purchase of an interest rate cap and an interest rate floor therefore limiting exposure to changing interest rates within a defined range.CollateralCertain assets set aside and pledged to a lender for the duration of a loan. If the borrower fails to meet obligations to pay principal or interest, the lender has claim to the assets.Commercial PaperAn unsecured, short-term promissory note issued by a corporation for financing accounts receivable and inventories. It is usually issued at a discount reflecting prevailing market interest rates.CommissionA fee charged by a broker for a service.CommodityA product traded on a commodity exchangeCommon SharesAnother name for ordinary shares – securities which represent part ownership in a company and generally carry voting rightsCompliance OfficerSomeone appointed by an organisation to ensure that it complies with local & international regulatory requirements.Concert PartyInvestors buying securities in agreement between themselves.ContractA standard unit of trading in futures & traded options.Contract NoteA note containing details of a transaction carried out by a bank/broker on behalf of a client.ConvergenceMovement of the price of a futures contract towards the price of the underlying.Conversion PremiumThe amount by which a convertible bond’s current market price exceeds the conversion value [current market value] of the shares into which it can be converted.Conversion PriceThe share price at which a convertible can be exchanged into shares.Convertible BondA bond that is convertible at a future date, at the option of the bondholder, into a stated quantity of equity shares in the issuer. If not converted, the bond will be redeemed at maturity.Convertible Loan StockAn interest bearing security with an option to convert into a specific amount of equity by a future date.ConvexityMathematical concept measuring the sensitivity of the market price of an interest-bearing bond to a change in interest rates.Corporate ActionsOnce a trade is concluded and the securities held in custody, events occur which can affect change in the underlying asset i.e. share split or a benefit to the shareholder i.e. dividend.CorporationThe most common form of business organisation, in which the total worth of the organisation is divided into shares of stock; each share representing a unit of ownership. A Corporation is characterised by a continuous life span and the limited liability of its owners.CorrelationA statistical measure which measures the degree of mutual variation between two random variables.CouponInterest payment.Covered WarrantsWarrants issued by intermediaries – they can be on single stocks, indices or baskets.Credit EnhancementImproving the credit rating of bonds by obtaining a third party guarantee or credit risk insurance.Credit RatingA formal opinion about the likelihood that a debt will be repaid in full and on time.Credit RiskThe probability that a counterparty will default on its financial obligations.Cross Border TradeThis occurs when the trading parties are situated in difference countries i.e. a buyer of a security in France with a seller of the same security in Germany who trade with each other.Cum DividendA security that is purchased with the right to the next dividend.Current assetsCash and other assets that are expected to be converted into cash within the next twelve months. Examples include such liquid items as cash and equivalents, accounts receivable, inventory and prepaid expenses. Currency RiskUncertainty in the return from a foreign financial asset due to unpredictability regarding the exchange rate.Currency SwapA transaction in which two parties agree to swap fixed or floating cash flows in different currencies for a specific period.Current YieldAnnual interest receivable from a security expressed as a % of its current market value.-D-DIEDesignated Investment ExchangeDMDeutschemarkDTCDepository Trust CompanyDTBDeutsche TerminborseDTIDepartment of Trade and IndustryDVPDelivery versus Payment. The simultaneous and irrevocable transfer of ownership of an asset in exchange for the equivalent assured counter value in same day funds.DTIDepartment of Trade & Industry [UK]Daily Official ListProduced each day by the London Stock Exchange to record the previous day’s trading prices.Day OrderAn order placed for execution during one trading session only – the order is automatically cancelled if not filled that day.DealerAn institution or individual who trades financial assets, either for their own account or on behalf of clients.DebenturesInterest bearing security, secured on the borrowers assets.Debt-Equity SwapA one-off transaction of physical instruments, without the exchange of future cashflows. Generally used by countries and companies with large debts that have become unserviceable.Debt SecurityNormally interest bearing bonds.Debt ServiceThe schedule for repayment of interest and principal (or the scheduled sinking fund contribution) on an outstanding debt.Debt WarrantGives the holder the right to buy a certain bond at a fixed price on or between certain dates.Default(1)The failure to pay interest or principal promptly when due.(2)The failure to perform on a futures contract as required by anexchange.Deferred SwapA type of swap, where due to accounting or tax reasons, payments [rather than the whole swap] are deferred to a later period.Delivery RiskThe risk faced when dealing in different time zones, when one side of a transaction has been delivered but not the other. Also known as settlement risk, it is encountered most often in foreign exchange & foreign securities transactions.DeltaA measure of the relationship between an option price and the price of the underlying futures contract or a stock price. The rate of change of delta is an option’s gamma.Dematerialised SecuritiesSecurities where the certificates or documents of title have been destroyed and replaced by electronic book entry records.Depreciation(1) A tax deduction that compensates a business for the cost of certaintangible assets.(2) A decrease in the value of a particular currency relative to othercurrencies.DerivativesAny financial product ‘deriving’ from another. For example, swaps futures and options.Designated Market MakerA dealer who continuously provides bid & ask prices at which they are obliged to deal, as well as a size.DevaluationA substantial fall in the value of a currency as compared to the value of gold or to the value of another country's currency.Difference OptionAn option that pays the difference in the price of two assets. The option is originally valued by the strike price.Differential SwapTypically a combination of a simple interest rate swap in the denominating currency, and a quantised swap, denominated in the same currency but referenced to a different currency.Diluted EarningsA reduction in earnings per share of common stock. Dilution occurs because of the issuance of additional common shares through the exercising of options and/or the conversion of convertible securities.Dirty PricePrice payable for a bond on settlement of a purchase transaction. The clean price plus accrued interest.Discount RateThe interest rate used in calculating the present value of future cashflows. Reflects not only time value but also risk over time.Discount SecurityA security that is issued at a discount to its face value and [normally] redeemed at par at maturity e.g. bills & zero-coupon bonds.Disposal of Crown Jewels DefenceA tactic where a company subject to a bid disposes of its best assets to a third party.DividendA distribution of the earnings of a corporation. Dividends may be in the form of cash, stock or property. The board of directors must declare all dividends.Dividend YieldThe dividend on a share as a % of the current share price.Dow Jones IndexA US stock market index.Due DiligenceThe careful investigation by the underwriters that is necessary to ensure that all material information pertinent to an issue has been disclosed to prospective investors.DurationThe average life of the present values of all future cash flows from a bond. Essentially a measure of bond price volatility by measuring its ‘length’ i.e. weighted average, term-to-maturity of a bonds cash flow.-E-EASDAQEuropean Association of Securities Dealers Automated Quotation – A pan European market for smaller companies based in Brussels.EBEarly bargainEBITDAEarnings before interest, tax, depreciation and amortisation - This method of valuation shows the free cashflow of a company excluding distortions due to differing depreciation policies.ECNElectronic communications networkECUEuropean Currency UnitEDREuropean depository receipt – non-Paris listings.EDSPExchange Delivery Settlement PriceEEAEuropean Economic Area [EU + EFTA]EFPExchange for PhysicalsEFTAEuropean Free Trade Area (Norway, Liechtenstein & Iceland)EGMExtraordinary General Meeting.EMHEfficient Market HypothesisEPSEarnings per share. A common valuation yardstick for equities.ERISAEmployee Retirement Income Security Act of 1974 allowing US Domestic funds to diversify into non-US securities.EUEuropean UnionEuroDREuropean depository receipt – Paris listed.EuroNMEurope-wide stock exchange for smaller companiesEVAThis is a trademark of Stern Stewart - an American company. It stands for Economic Value Added. It states that ROC (Return on Capital) should be greater than the COC (Cost of Capital). It is a methodology of measuring companies' true profits rather than accounting profits and endeavours to change the behaviour of the employees of a company to take longer-term views on projects that they undertake.EconometricsThe use of computer analysis and modelling techniques to describe, on statistical terms, the relationship between key economic forces, then test the effects of changes in economic scenarios.Efficient PortfolioA portfolio which offers investors both the maximum return for varying levels of risk & the minimum risk for varying levels of return.Embedded OptionAn option which is embedded in a debt instrument and affects its redemption or return e.g. callable & puttable bonds.Emerging MarketsThese are markets where generally the markets are considered to be illiquid, under-regulated, with poor settlement systems and highly volatile markets can occur when a sudden of interest from foreign investors from the developed markets pour money in to an emerging market.EquityOwnership. Normally applied to company shareholders. The shares they hold are called equity.Equity Index SwapA swap in which the total or price return on an equity index, equity basket or single equity is exchanged for a stream of cash flow based on a short-term interest rate index or another index.Equity KickerThe attachment of share options or warrants to an issue of bonds.。

Glossary of TermsAcceptances: Short-term, fixed interest loans, based upon bills of exchange, drawn or bank, the bills being discounted at market rates. Acceptances are normally related to a company's trading activities.Annuity: This is a form of life assurance that, like a pension, provides for a sum of money to be paid at regular intervals to the policyholder.Arbitrage: Dealings in foreign exchange, securities or other instruments with the aim of making profits out of the differences in exchange rates, security prices or other prices existing in different centres or at different times.Bearer Bond: Bonds for which ownership is shown by a document rather than an entry in a register. Title is transferred by delivery of the bearer document.Bear Market: A "bear" is an investor who sells shares (often those he does not possess) in the hope that prices will fall, thereby enabling him to buy more cheaply later. The same intention applies to "bears" of individual currencies or commodities. Thus a "bear market" is a period of falling prices. Technicians and chartists have formulae for recognising such markets.Big Bang: Usually refers to the major changes on the London Stock Exchange on October 27, 1986, when major innovations in the method of buying and selling shares as well as in the ownership of firms were introduced overnight.Bill-broker: He was originally a middle-man who helped others to buy or sell bills of exchange for a commission. Nowadays the term is used in a wider context to include individuals and firms that make a market in bills of exchange, Treasury bills and other money market instruments.Bills of Exchange: These are essentially paper promises, signed by one person requiring a second person or firm to pay a certain sum of money on demand or on a fixed date, normally short-term. They are, in effect, post-dated cheques. They were defined by the Bills of Exchange Act of 1882. Such bills, when "accepted", can be sold for cash to discount houses.Bill of London: A bill of exchange issued in any part of the world, but "accepted" in London. This was the traditional method of sterling finance throughout the nineteenth century and later. Blue Chip: A high quality industrial share. The term is said to be of American origin, derived from the colour of the highest value poker chip.Broker/dealer: A member of the London Stock Exchange who provides advice and dealing services to the public. They may intermediate between customers and market-makers and may also act as principals, transacting business with customers from their own holdings of stock. Broking Houses: Traditionally such firms acted middle-men, linking sellers and buyers in commodities, money, foreign exchange, securities, shipping freights, gold, etc, in exchange for a commission. Nowadays they often buy and sell as principals on their own account, depending on the habits and regulations within their particular trade.Bull Market: A "bull" is an investor who buys shares now, with cash or credit, in the hope that prices will rise in the future so that he can make a profit. A "bull market" is thus a period of rising share prices. Similar attitudes towards currencies or commodities are likewise described as "bullish". Technicians have formulae for recognising "bull" markets.Call Money: These are cash deposits placed by banks with discount houses which can be withdrawn on demand.Call Option: The right to buy stock, shares or other commodity at an agree price at a future date.Capital Base: Basically this is the capital employed in a business, including ca pital reserves, loans and ordinary shares.Capital Issue: The issue of securities with a view to raising capital for a company. Capitalisation Issue: The process whereby money from a company's reserves is converted into issued capital, which is then distributed to shareholders as new shares, in proportion to their original holdings. Also known as bonus issue or scrip issue.Capt ive insurance company: An insurance company established by a company, trade association or other non-insurance organisation, primarily for the insurance and/or re-insurance of the founder's (or its members') own risks.Certificates of Deposit: (or CDs): Certificates given to a lender of funds by a bank, which can then be traded in the market to realise the cash assets. This enables the bank to hold the funds for a guaranteed period of time, while the lender is free to trade the CDs whenever he wishes. Charter Party: An agreement drawn up between the two sides of a shipping contract- the owners of the ship and the cargo to be carried.Clearing House: Normally used in banking where cheques are cleared and credited to appropriate accounts. The term is also used in the commodity and derivative trades where a clearing house provides a guarantee of payments to participants.Commercial Bills: Bills of exchange issued by commercial companies, which can be accepted or endorsed by banks (and then referred to as "bank bills") or not accepted by banks (in which case they are referred to as "trade bills").Convertibility: Usually referring to currencies. A "convertible currency" is one which monetary authorities allow the holder to freely convert into other currencies or gold.Coupon: Annual interest usually paid on gilt-edged stock, for example, in two equal, semi-annual instalments. Expressed as a percentage of the nominal value of the stock.Cover: The amount of money a company has available for distribution as dividend, divided by the amount actually paid gives the number of times that the dividend is covered.Debenture: A document issued under a trust deed that creates or acknowledges a debt. It usually relates to a security transaction payable within a specified period, carries a fixed rate of interest and is secured against the general assets of a company.Derivative: A term that embraces futures, forwards, options and warrants, i.e., financial instruments that are based on a real asset, such as a commodity, a currency or money of any kind. Derivatives can be based on standard products traded under the rules of an exchange or customised products traded "over the counter".Discount Houses: Companies that specialise in discounting bills of exchange, Treasury bills, etc., and in dealing in short-dated Government bonds. The "discounting" of a bill implies the offer of cash for it below its face value. This discount is a reflection of the current rate of interest, the quality of the bill and its maturity date.Discount: When the market price of a newly issued security is lower than the issue price. If it is higher, the difference is called a premium.Endowment Policies: A combination of life assurance and investment whereby the sum assured is payable on a predetermined date or on prior death.Equity: This is another name for Ordinary shares, which provide that the ultimate ownership of companies should carry votes at all general meetings of companies and thus control overall policy. An equity stake in a company carries with it the ownership of the company, carrying with it the right to a share in profits and the risk of bearing losses.Eurobond: These are bonds or notes with a final maturity, with either a fixed or floating interest rate, issued in a Eurocurrency. Originally the buyer of the bond or note usually held it outside the country of origin of the currency in which it was denominated. With increased currency and other freedoms, this distinction has now become blurred.Euro-currency: The name given to any currency, held outside its country of origin, e.g. Euro-dollar, Euro-sterling, Euro-yen, Euro-mark, etc. The "Euro" appellation derives from the place where the first market in such external currencies (primarily dollars) actually arose. Not to be confused with the new European currency, the Euro.Factoring: This is a service, provided by a third party to companies, which includes sales accounting, debt-collection services and protection against bad debts. Customers also receive immediate payments for a high percentage of debts owed to them.Fixt ure: The name given to the final details of a shipping agreement between a shipowner and the owner of the cargo. Once agreement is reached, the ship is said to be "fixed". Hence the name.Float ing Rates: Rates of interest calculated as fixed margin above a variable rate of interest such as that in Singapore, London or other Interbank Offered Rate (see LIBOR). T hey are normally used in Euro-currency loans or Eurobonds (known as Floating Rates Notes).Floatation: The occasion on which a company's shares are offered on the stock market for the first time.Footsie: A colloquial reference to the FT-SE 100 share index of 100 leading UK shares listed on the London Stock Exchange. Started on January 3, 1984. It is the basis of a traded option contract.Foreign Bond Issues: Bonds issued on a domestic market on behalf of foreign borrowers, corporate or Government. The distinction between them and Eurobonds has become blurred. Forfaiting: This is a form of supplier's credit ranging from six months to five years and beyond. It is usually based on a bill of exchange or a promissory note.Forward Market: A market in forward contracts of a commodity or currency or financial instrument, which are agreements to sell or purchase a certain agreed amount at a future date. Unlike future contracts such contracts cannot be transferred or sold to second or third parties.FT Index: This is the original Financial Times share index of 30 leading industrial shares on the London market, begun in 1935.Futures Market: A market in futures contracts which basically requires the delivery of a commodity, currency or security in a specified future month, if not liquidated before that date. They can be transferred to third parties and thus traded in.Gearing: Basically this is the proportional relationship between debt capital (plus borrowing) and equity capital. Changes in this proportion can be used to increase or decrease the risk of profit or loss.GEMM: These are gilt-edged market makers, i.e. dealers in Government securities who are required to make continuous two-way prices on request to any member of the London Stock Exchange and to investors known to them directly.Gilt-edged Stock: Fixed interest securities issued and guaranteed by the British Government. The term is sometimes used to include UK local authority securities and Commonwealth government securities. "Gilt-edged" derives from the original use of high quality paper with gilt edges on the earliest certificates. Term said to have been used for the first time in 1892. "Long gilts" are issues without a redemption date within 15 years; "medium gilts" are those with a redemption date between seven and 15 years; and "short gilts" are those with a redemption date within seven years.Gold Standard: The international monetary system in operation generally throughout the nineteenth century and up to 1931. A country was said to be on the Gold Standard when its currency was based on an agreed amount of gold, when it agreed to buy and sell gold at fixed prices and when gold could be moved in and out freely.Government Broker: Formerly he was a stockbroker appointed to act as the Government's agent in the gilt-edged market. Traditionally he was the senior partner of Mullens & Co. Since "Big Bang" he has been a senior Bank of England official, who advises and acts for the National Debt Office, and acts as adviser to the Government.Index Linked Gilt: A Government security whose interest and capital change in line with the official Retail Price Index.Hedging: A method of insuring against price fluctuations through the purchase of a futures contract. A "hedge" can be the establishment of an opposite position in the futures market to that held in the spot or physical market.Hedge Funds: They usually employ the use of derivatives instruments to enhance risks rather than to offset them.Hot Money: Short term money that moves from one financial centre to another and is quickly affected by changes in exchange rates, interest rates, economic policies or simply monetary fears. Instalment credit: A form of personal or industrial credit under which the ownership of the goods or equipment passes to the borrower on the repayment of an agreed number of instalments.Instit utional Investors: The large financial institutions such as insurance companies, pension funds, unit and investment trusts, etc., in contrast to private investors.Insurance Brokers: Specialised and officially recognised brokers who secure insurance business and place it with recognised underwriters.Interbank Market: Financial transactions between banks, often forming a base for quotationsof rates for commercial borrowing from banks.Invest ment Trust: A company that invests a fixed amount of money in a variety of stocks and shares, thus providing a way of spreading risks. They have fixed capital, unlike unit trusts which can create or redeem units in response to demand. They are therefore referred to as "closed-end funds". The price is regulated by the supply and demand for shares and does not necessarily reflect the underlying asset value.Invisible Exports or Income: Foreign income from sources other than the movement of physical goods (visible exports). Invisible income is thus derived from the sale of services to foreigners and from the interest, profits and dividends derived from the ownership of foreign investments.Jobbers: These were members of the London Stock Exchange before Big Bang who acted as market-makers in shares and traded as principals on their own account. They could only deal with brokers not the general public.Leads and Lags: A phrase used to describe deliberate delays in payments in certain currencies and accelerate payment in others, in efforts by international traders to protect themselves against exchange rate fluctuations.Leasing: Facilities provided under equipment-leasing agreements by banks or their subsidiaries. The assets being financed remain in the ownership of the leasing company but are effectively hired out to the customer.Libor: London Interbank Offered Rate. The rate of interest used as the basis of lending in the Eurocurrency markets.Life Offices: Firms that assure the payment of agreed sums of money on a given date or on death, in return for the payment of regular premiums. They can be mutual offices (owned bywith-profits policyholders), proprietary companies (owned by shareholders) or friendly societies. Listed Company: A company that has obtained permission for its shares to be admitted to the London Stock Exchange.Loan Stock: A generic term covering securities issued against loans.Long: To be "long" of a commodity, security or currency implies having a surplus of it.Market capitalisat ion: The current stock market valuation of a company's outstanding capital. Merchant Bank: Was formerly the name given to members of the Accepting Houses Committee, whose bills had special privileges at the Bank of England. Now used as a broader description of investment houses in London, offering both banking and security services, as well as a variety of other services.Minimum Lending Rate (MLR): This weekly rate, imposed by the Bank of England, replaced the old Bank Rate in London in October 1972. Its use was later discontinue d in practice, though it remains in reserve.Name: The term used to describe members of Lloyd's, the insurance market.Net Asset Value: The value of a company after all debts have been paid, expressed in pence per share.Offshore Centre: A financial centre free of many taxes and constraints. The term was first applied to literally "offshore" centres of the US such as the Bahamas, Cayman Islands, etc. It can also refer to certain international transactions in a city like New York, Tokyo or London that are especially free of normal domestic taxes and rules.Option Market: Markets in entitlements to trade in underlying share or commodity at a fixed price at any time within a specified period. The buyer of the option pays a premium for the guarantee of receiving or delivering the security or commodity at the fixed price until the option expires.Ordinary Shares: Holders of Ordinary Shares (also known as the equity) in a company are the owners of a company, and have the right to vote at company meetings. They are the risk capital of a company benefiting from success and, at the same time, risking ultimate loss.Outcry Market: A market which is based on competitive bids expressed by participants in person. Sometimes referred to as "rings", as in the London Metal Exc hange.Overdraft: The traditionally British form of bank loan. The borrower agrees a maximum limit and can then draw up to this amount from his account. He is charged on the amount he uses. It is usually repayable on demand.Overnight Money: Money lent for one day up to 3pm that will be automatically repaid the following business day.Parallel Money Market: Name originally given to markets in money, in both sterling and foreign currencies, that grew up alongside the traditional money market.Pension Funds: Funds created to finance the provision of pensions to employees.P and I clubs: Mutual indemnity associations of ship-owners, charterers, etc, to protect themselves against certain liability and other marine risks not normally covered by marine insurers.Portfolio Invest ment: Investment in securities, in contrast with investment in fixed assets such as factories, property, etc.Preference shares: These are normally fixed-income shares, whose holders have the right to received dividends before Ordinary shares but after debenture and loan stock holders have received their interest.Prices/Earning Rat io: The current share price divided by the last published earnings. It is used as a measure of whether a share should be considered "expensive" or not.Primary Market: A market that deals in newly issued shares, in contrast to a secondary market which deals in existing securities.Redempt ion Date: The date on which a security is due to be repaid by the issuer at its full face value.Re-insurers: Insurance companies that help to spread the risks by accepting insurance business from other insurance companies and underwriters.Retrocession: The re-insurance of claims liabilities incurred under contracts of re-insurance. Roll-Over: Describes a method of extending the maturity of a loan.SEAQ: The London Stock Exchange's Automated Quotation System for UK Securities.SEAQ International: The London Stock Exchange's electronic screen system for non-UK equities.Secondary Market: A place for buying and selling existing securities, in contrast to the primary market which deals in new securities.Short: To be "short" of a commodity, a security or a currency implies having oversold it.Spot Market: A market in actual goods for immediate delivery.Stag: An investor who applies for a new issue in the hope of being able to sell the shares allotted to him at a profit as soon as dealing starts.Swap: A financial instrument that enables participants to exchange one kind of obligation for another, usually in relation to interest rates or exchange rates, on agreed terms. Swaps form part of the derivative market.Syndicate: A group of people or of institutions that come together with a specific purpose, such as a group of banks putting together an Euro-syndicated loan, or a group within Lloyd's pooling resources to cover insurance risks.Tender Offer: In an offer by tender, buyers of shares specify the price at which they are willing to buy.Term Loan: A bank loan for a fixed amount and for an agreed length of time, in contrast to the traditional overdraft.Term Policy: This is a type of insurance policy that provides for an agreed sum of money to be paid to the policyholder's family or next of kin but only if the policyholder happens to die within an agreed period of time.Treasury Bill: Promissory note issued by the Treasury, usually for 91 days, to finance Government expenditure short-term.Underwriter: An insurer or an individual who decides what risks to accept and on what terms.Unit trusts: A fund of stocks and shares held by a trustee for the benefit of subscribing investors. They offer a means of spreading risks. Since new units can be created or redeemed, they are referred to as "open-ended" funds.Venture Capital: In contrast to normal bank loans to small businesses, this is based on the supply of equity capital (plus loan capital) and management expertise. The hope is that the company offering the capital will be able to "float" the company's shares on the stock market in due course.Wall Street: The financial district of New York in Lower Manhattan. The American equivalent of "the City".Warrant: A special kind of option, given by the company to holders of a particular security, giving them the right to subscribe for future issues, either of the same kind or some other security.Whole Life Policy: This provides for an agreed sum of money to be paid to the policyholder's family or next of kin when the policyholder dies, whenever that may be.Yield: The annual return of money invested, based on the current price of a security, on the assumption that the next dividend will be the same as the last one. Flat yield is the income on a fixed interest stock, ignoring any capital gain that may be made if the stock is due to be redeemed at par at some future date. Redemption yield is the same, but allowing for the expected capital gain.Source: How the City of London Works. Sixth edition. William M. ClarkeFor further definitions and latest Financial Industry articles, please go to/。

Report No. 6.52/244September 1999Glossary of HSE termsublicationsGlobal experienceThe International Association of Oil & Gas Producers (formerly the E&P Forum) hasaccess to a wealth of technical knowledge and experience with its members operatingaround the world in many different terrains. We collate and distil this valuable knowl-edge for the industry to use as guidelines for good practice by individual members.Consistent high quality database and guidelinesOur overall aim is to ensure a consistent approach to training, management and bestpractice throughout the world.The oil and gas exploration and production industry recognises the need to developconsistent databases and records in certain fi elds. The OGP’s members are encouragedto use the guidelines as a starting point for their operations or to supplement their ownpolicies and regulations which may apply locally.Internationally recognised source of industry informationMany of our guidelines have been recognised and used by international authorities andsafety and environmental bodies. Requests come from governments and non-governmentorganisations around the world as well as from non-member companies.DisclaimerWhilst every effort has been made to ensure the accuracy of the information contained in this publication, neither the OGP nor any of its members past present or future warrants its accuracy or will, regardless of its or their negligence, assume liability for any foreseeable or unforeseeable use made thereof, which liability is hereby excluded. Consequently, such use is at the recipient’s own risk on the basis that any use by the recipient constitutes agreement to the terms of this disclaimer. The recipient is obliged to inform any subsequent recipient of such terms.Copyright OGPAll rights are reserved. Material may not be copied, reproduced, republished, downloaded, stored in any retrieval system, posted, broadcast or transmitted in any form in any way or by any means except for your own personal non-commercial home use. Any other use requires the prior written permission of the OGP.These Terms and Conditions shall be governed by and construed in accordance with the laws of England and Wales. Disputes arising here from shall be exclusively subject to the jurisdiction of the courts of England and Wales.Glossary of HSE terms©2000 OGPGlossary of HSE termsReport No: 6.52/244September 1996The Glossary was assembled for OGP and IAGC by Mike Covil of IAGC.It has been reviewed and approved for use for the purposes set out in the Introduction by the Safety Health and Personnel Competence (of OGP ) and by the Board of Directors of IAGC.IntroductionThis Glossary provides a reference to authors of OGP and IAGC HSE documentation, such that HSE documentation issued by these two associations use consistent terminology. It is not the intention to force upon the Industry a defi nitive set of defi nitions. It is recognised that each company may have evolved defi nitions of its own.This Glossary was generated initially by extracting defi nitions from OGP and IAGC HSE documents. Where relevant the origins of such defi nitions have been given. The Glossary was circulated amongst members of the OGP and IAGC on three occasions. This provided additional defi nitions and suggestions for other HSE Terms to be included.The present Glossary includes the defi nition which was selected by members votes as the most appropriate and acceptable. Where more than one OGP/IAGC defi nition is already in existence, they have been included, and ranked according to the votes they received. The fi rst defi nition in these cases is the preferred one.ii †Taken from The Dictionary of terms used in the Safety Profession, with the kind per-mission of The American Society of Safety Engineers.©2000 OGPGlossary of HSE terms©2000 OGP Accident Any event which results in injury, and/or damage and/or loss. (IAGC Consensus 1993).Note: OGP ‘Guidelines for the development and application of health safety and environmental management systems’ 1994, uses ‘incident’ as the preferred term and does not use ‘accident’.AccountabilityThe ultimate responsibility for an area of authority defi ned by the individual’s Job Descrip-tion , and will include authority delegated to a subordinate albeit temporary or permanent.Air emissionsWaste gases, vapours and small particles that are released into the air .Audit1 A systematic, independent evaluation to determine whether or not the health, safety and environmental management system and its operation comply with planned arrange-ments, and whether or not the system is implemented effectively, and is suitable to fulfi l the company’s health, safety and environmental policy and objectives. (based on OGP report 6.36/210, 1994 ‘Guidelines for the development and application of health, safety and environmental management systems’).2 The examination of the whole system to assess how it has been used over a period, and so make sure it has operated as intended. (OGP report 6.29/189, 1993 ‘Guidelines on permit to work (PTW) systems’).†Blood Alcohol Concentration (BAC)The relative proportion of ethyl alcohol within the blood, based upon the number of grams of alcohol per 100 millilitres of blood, and often expressed as a percentage†CardioPulmonary Resuscitation (CPR)A combination of artifi cial respiration (mouth to mouth) and artifi cial circulation (external cardiac compression).CompetenceThe ability to perform a particular job in compliance with performance standards. (OGP report 6.34/206, 1994 ‘Health safety & environmental schedules for marine geophysical opera-tions’).Glossary of HSE terms1Contingency planA pre-established plan to mitigate an unusual situation which has the potential for harm, which incorporates the best use of local as well as remote facilities and resources. ContractA system of operating between two or more parties.DangerThe risk of injury.Dangerous occurenceReadily identifi able event (see Accident and Near miss) with potential to cause an accident or disease to persons at work and the public or of signifi cant actual or potential material damage.Emergency planSee Contingency planEmployeeAny individual who carries out duties or actions specifi ed by an employer for which the indi-vidual receives remuneration from the employer .EnvironmentThe surroundings and conditions in which a company or individual operates or which it may affect, including living systems (human and other) therein. (OGP report 6.36/210, 1994 ‘Guidelines for the development and application of health, safety and environmental management systems’).Environmental Impact Assessment (EIA)1 Part of project management concerned with identifying through a formal written tech-nical evaluation the likely impact (positive and negative) of a proposed development or activity on the natural and man-made environment. A process whereby the assessment is used in reaching a consensus on acceptable levels of change, defi ning the means by which agreed standards of operation and procedure will be achieved and establishing management procedures to ensure these objectives are achieved and maintained. (OGP report 2.40/135, 1986 ‘E&P Forum view of environmental impact assessment’).2©2000 OGPGlossary of HSE terms©2000 OGP 2 A formal, written, technical evaluation of potential effects on the environment (atmos-phere, water, land, plants and animals) of a particular event or activity. (OGP report2.58/196, 1993 ‘Exploration and production waste management guidelines’).ErgonomicsThe science of studying people at work, and designing tasks, jobs, tools, equipment, facilities, and the work environment, so that people can be safe, healthy, effective, effi cient, productive and comfortable.ExposureThe measurement of time during which the subject is at risk from a hazard .Fatal Accident Frequency Rate (FAFR)The number of fatalities per 100 million man hours worked .i.e. FAFR= Number of fatalities M an hours worked(OGP report 6.4/121, 1985 ‘E&P Forum accident reporting system’).FatalityDeath due to work related injury or illness.Fatality rate (not now used)The number of fatalities per 1,000 employees .i.e. FR = Number of fatalities Total number of employees(OGP report 6.4/121, 1985 ‘E&P Forum Accident Reporting System’).×1,000×100,000,0003First aidThe skilled application of accepted principles of treatment on the occurrence of an accident or in the case of sudden illness, using facilities and materials available at the time.• to sustain life;• to prevent deterioration in an existing condition; and• to promote recovery.The most important areas of fi rst aid treatment are:• restoration of breathing (resuscitation);• control of bleeding; and• prevention of collapseFirst Aid Case (FAC)A work related minor injury or illness which can be treated by a fi rst aider or equivalent and does not require a professional physician or paramedic.†Flash pointThe lowest temperature of a fl ammable liquid at which it gives off suffi cient vapour to form an ignitable mixture with the air near the surface of the liquid or within the container used. Generic hazardA hazard which may be generally present throughout an operation or industry but which may have widely different levels of risk, depending on the specifi c site characteristics. Greenhouse gasesGases that alter the thermal properties of the atmosphere. The main greenhouse gases are considered to be water vapour, carbon dioxide, methane, nitrous oxide, chlorofl ouro carbons, halons and ozone.Hand toolsTools which are portable and are operated whilst being held.4©2000 OGPGlossary of HSE terms©2000 OGP Hazard1 An object, physical effect, or condition with potential to harm people, property or the environment . (OGP report 6.40/217, 1994 ‘Generic hazard register’).2 The potential to cause harm, including ill health or injury , damage to property , plant, products or the environment ; production losses or increased liabilities. (OGP report6.36/210, 1994 ‘Guidelines for the development and application of health, safety and envi-ronmental management systems’).3 A source of danger which if not adequately controlled or if suitable precautions are not taken could create an unsafe condition. (OGP report 6.29/189, 1993 ‘Guidelines on permit to work systems’)4 The potential for adverse consequences to arise from the occurrence of an identifi ed event affecting the safety of people, the environment or economic resources. (OGP report 11.1/98, 1984 ‘Applications and limitations of risk assessment in offshore exploration and production’).Hours worked1 The hours that an employee is present at the work location.2 The actual hours worked for onshore operations. For offshore workers a 12 hour day. (OGP report 6.5/301, 2000 ‘User guide for safety statistics reporting ’).HousekeepingMaintaining the working environment in a tidy manner so that, in particular, access and movement is not hindered.HSE management systemThe company structure, responsibilities, practices, procedures, processes and resources for implementing health, safety and environmental management. (OGP report 6.36/210, 1994 ‘Guidelines for the development and application of health, safety and environmental management systems’).HSE planA description of the means of achieving health, safety and environmental objectives. (OGP report 6.36/210, 1994 ‘Guidelines for the development and application of health, safety and environmental management systems’).5©2000 OGP HSE policy statementThose documents which record the HSE policy of the organisation.IncidentAn event or chain of events which has caused or could have caused injury , illness and/ordamage (loss) to assets, the environment or third parties. (OGP report 6.36/210, 1994 ‘Guide-lines for the development and application of health, safety and environmental management sys-tems’).InjuryPhysical harm or damage to a person resulting from traumatic contact between the body of the person and an outside agency, or from exposure to environmental factors.Injury frequency (not now used): see Lost Time Injury FrequencyThe number of injuries per million man hours worked.IF= Number of injuries M an hours worked(OGP report 6.4/121, 1985 ‘E&P Forum accident reporting system’).Injury rateThe number of injuries per 100 employees IR= Number of injuries Total number of employees(OGP report 6.4/121, 1985 ‘E&P Forum accident reporting system’).Injury severity rateThe number of days lost per 1 million man hours worked.ISR= Number of days lostMan hours worked (OGP report 6.4/121, 1985 ‘E&P Forum accident reporting system’).×1,000,000×100×1,000,0006Glossary of HSE terms©2000 OGP Job descriptionA short document which sets out an employee ’s authority and responsibilities in the job, who he reports to, and who reports to him; what his duties are and the qualifi cations necessary to perform those duties.Journey managementThe planned movement of people and equipment from one place to another including com-munications, route, scheduled stops, hazard warnings, provisioning, breakdown and other contingency .†Just causeGood or fair reason(s) for discipline.Line managementA documented system that clearly indicates the responsibilities and reporting structure throughout an organisation.Lock out/tag outA documented system of barriers and notices that prevents the accidental or inadvertent operation of equipment whilst it is being maintained or inspected.Lost Time Injury (LTI):Any work related injury or illness which prevents that person from doing any work the day after the accident . (IAGC Consensus 1993)Lost Time Injury Frequency (LTIF): [see injury frequency ]The number of LTI ’s recorded for a group of workers, per million hours worked by that group.ManagementThose aspects of the overall management function (including planning) that develop, imple-ment and maintain the HSE policy (based on OGP report 6.36/210, 1994 ‘Guidelines for the Development and application of health, safety and environmental management systems’).7Material Safety Data Sheet (MSDS)A sheet issued by a manufacturer of chemical substances that sets out the hazards likely to be encountered by those who come into contact with the substance. The sheet may also identify recovery procedures following adverse exposure.MedevacThe evacuation for medical reasons from the work location to a hospital.Medical Treatment Case (MTC)The injured or sick person requires treatment (more than First Aid) from a professional physi-cian or qualifi ed paramedic.Near miss/near accidentAny event which had the potential to cause injury and/or damage and/or loss, but which was avoided by circumstances. (IAGC Consensus 1993).Occupational illnessAn abnormal health condition or disorder (physical or mental) that is caused or aggravated by exposure to environmental factors associated with employment, including chemical, physical, biological and ergonomic factors.Occupational injuryWork related physical injury or disease [illness] which results in death; being unfi t to work the day following the event; restriction of work or motion including temporary or permanent transfer to another job. (OGP report 6.5/301, 2000 ‘User guide for safety statistics reporting’). Performance indicatorA specifi c measure to describe management, operational process or performance.8©2000 OGPGlossary of HSE terms©2000 OGP Permit to work (system)A formal written system used to control certain types of work which are identifi ed as hazard-ous. It is also a means of communication between site/installation management, plant super-visors and operators and those who carry out the work.Essential features of a Permit to Work are:• Clear identifi cation of who may authorise particular jobs (and any limits to their author-ity) and who is responsible for specifying the necessary precautions.• Training and instruction in the issue and use of permits.• Monitoring and auditing to ensure that the system works as intended.(OGP report 6.29/189, 1993 ‘Guidelines on Permit to Work Systems’).Personal Protective Equipment (PPE)All equipment and clothing which is intended to be worn or held by a person at work and which affords protection against one or more risks to health and safety. This includes cloth-ing designed to protect against adverse weather conditions.Policy1 The expression of the general intentions, approach and objectives of an organisation and the criteria and principles on which actions and responses are based. (OGP report6.34/206, 1994 ‘Health, safety and environmental schedules for marine geophysical opera-tions’)2 A public statement of the intentions and principles of action of the company regarding it’s health, safety and environmental effects, giving rise to its strategic objectives and tar-gets. (based on OGP report 6.36/210, 1994 ‘Guidelines for the Development and applica-tion of health, safety and environmental management systems’).Preventative maintenanceMaintenance carried out before the unit or system fails to ensure its continued reliability and safe operation.Procedure1 A document that describes how an activity is to be performed and by whom.2 A document that specifi es the way to perform an activity. (OGP report 6.34/206 1994 ‘Health safety and environmental schedules for marine geophysical operations’)9QualityThe totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.Quality managementThat aspect of the overall management function that determines and implements the quality policy.Reasonably practicableA risk reduced to levels such that further risk reduction measures would be so disproportion-ate to the probability and consequences of occurrence that it would be objectively unreason-able to implement them.Recordable injuryIncludes any work related incident where a person is fatally injured or becomes fatally ill or requires treatment from a professional physician or paramedic on more than one occasion for the same incident.Reportable incidentThose incidents which are considered serious enough to warrant being recorded as a statis-tic.ResponsibilityThose actions, activities or assets for which a person is held liable and for which he alone must account.Restricted Work Case (RWC)Where the employee cannot fulfi l his normal work the day following an incident but is able to undertake a temporary job; work at his normal job but not full-time; work at a permanently assigned job but unable to perform all duties normally assigned to it. (OGP report 6.5/301, 2000 ‘User guide for safety statistics reporting’).Risk1 The product of the chance that a specifi ed undesired event will occur and the severity ofthe consequences of the event. (OGP report 6.36/210, 1994 ‘Guidelines for the Develop-ment and application of health, safety and environmental management systems’).10©2000 OGPGlossary of HSE terms©2000 OGP 2 The measure of the likelihood of occurrence of an undesirable event and of the poten-tially adverse consequences which this event may have upon people, the environment or economic resources. (OGP report 11.1/98, 1984 ‘Applications and limitations of risk assessment in offshore exploration and production’).Risk assessment1 A careful consideration by competent people of the hazards associated with a task. The potential effect of each hazard , how severe it might be and the likelihood of it occur-ring, should be considered to determine the effort required to make the work site as safe as reasonably practicable . (OGP report 6.29/189, 1993 ‘Guidelines on permit to work systems’)2 The whole process of risk analysis and the evaluation of the results of the risk analysis against technological and/or economic, social and political criteria. (OGP report 11.1/98, 1984 ‘Applications and limitations of risk assessment in offshore exploration and produc-tion’).Risk managementA management system which eliminates or mitigates the threat from hazards . (OGP report6.29/189, 1993 ‘Guidelines on permit to work systems’)Risk sensitive job: (HSE critical)Activities, personnel or measures that have been identifi ed as vital to ensure asset integrity, prevent incidents , and/or to mitigate adverse HSE effects. (OGP report 6.36/210, 1994 ‘Guidelines for the Development and application of health, safety and environmental management systems’).Senior managementThose managers or directors who have executive authority to determine and enact strategic policies within the organisation.StandardA document, established by consensus and approved by a recognised body, that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results.StressAny interference that disturbs a person’s healthy mental and physical well-being.11Substance (abuse)Any substance which chemically modifi es the body’s function resulting in psychological or behavioural change. In this context substance includes but is not limited to alcohol, intoxicat-ing products or medication. Substance Abuse is the use of these substances in a harmful or improper way. (OGP Report 6.87/306, 2000 ‘Substance abuse: guidelines for management’).TrainingThe process of imparting specifi c skills and understanding to undertake defi ned tasks.ToxicThe characteristic of a chemical substance to produce injury once it reaches a susceptible site in or on the body. The effects may be acute or chronic, local or systemic.Unsafe actAny act that deviates from a generally recognised safe way or specifi ed method of doing a job and increases the potential for an accident.WasteAny material, (solid, liquid or gas), which is introduced into the work location as a product of the work but which fulfi ls no further useful purpose, at that location.Waste managementA system to achieve reduction, re-use, reclamation, recycling and responsible disposal of materials.†Taken from The Dictionary of terms used in the Safety Profession, with the kind per-mission of The American Society of Safety Engineers.12©2000 OGPGlossary of HSE terms ©2000 OGP1314©2000 OGPWhat is OGP?The International Association of Oil & Gas Producers encompasses the world’s leading private and state-owned oil & gas companies, their national and regional associations, and major upstream contractors and suppliers.Vision•To work on behalf of all the world’s upstream companies to promote responsible and profitable operations.Mission•To represent the interests of the upstream industry to international regulatory and legislative bodies.•To achieve continuous improvement in safety, health and environmental performance and in the engineering and operation of upstream ventures.•To promote awareness of Corporate Social Responsibility issues within the industry and among stakeholders.Objectives•To improve understanding of the upstream oil and gas industry, its achievements and challenges and its views on pertinent issues.•To encourage international regulators and other parties to take account of the industry’s views in developing proposals that are effective and workable.•To become a more visible, accessible and effective source of information about the global industry, both externally and within member organisations.•To develop and disseminate best practices in safety, health and environmental performance and the engineering and operation of upstream ventures.•To improve the collection, analysis and dissemination of safety, health and environmental performance data.•To provide a forum for sharing experience and debating emerging issues.•To enhance the industry’s ability to influence by increasing the size and diversity of the membership.•To liaise with other industry associations to ensure consistent and effective approaches to common issues.209-215 Blackfriars RoadLondon SE1 8NLUnited Kingdom Telephone: +44 (0)20 7633 0272 Fax: +44 (0)20 7633 2350165 Bd du Souverain4th FloorB-1160 Brussels, Belgium Telephone: +32 (0)2 566 9150 Fax: +32 (0)2 566 9159Internet site: e-mail: reception@。

Glossary of Literary TermsAllegoryA symbolic narrative in which the surface details imply a secondary meaning. Allegory often takes the form of a story in which the charactersrepresent moral qualities. The most famous example in English is John Bunyan's Pilgrim's Progress, in which the name of the central character,Pilgrim, epitomizes the book's allegorical nature. Kay Boyle's story "Astronomer's Wife" and Christina Rossetti's poem "Up-Hill" both containallegorical elements.AlliterationThe repetition of consonant sounds, especially at the beginning of words. Example: "Fetched fresh, as I suppose, off some sweet wood." Hopkins, "In the Valley of the Elwy."AntagonistA character or force against which another character struggles. Creon is Antigone's antagonist in Sophocles' play Antigone; Teiresias is the antagonistof Oedipus in Sophocles' Oedipus the King.AssonanceThe repetition of similar vowel sounds in a sentence or a line of poetry or prose, as in "I rose and told him of my woe." Whitman's "When I Heard the Learn'd Astronomer" contains assonantal "I's" in the following lines: "How soon unaccountable I became tired and sick, / Till rising and gliding out Iwander'd off by myself."CharacterAn imaginary person that inhabits a literary work. Literary characters may be major or minor, static (unchanging) or dynamic (capable of change). In Shakespeare's Othello, Desdemona is a major character, but one who is static, like the minor character Bianca. Othello is a major character who isdynamic, exhibiting an ability to change.CharacterizationThe means by which writers present and reveal character. Although techniques of characterization are complex, writers typically reveal charactersthrough their speech, dress, manner, and actions. Readers come to understand characters who are developed through their actions, what they say,their physical appearance, and what others say about them.ClimaxThe turning point of the action in the plot of a play or story. The climax represents the point of greatest tension in the work. The climax of JohnUpdike's "A&P," for example, occurs when Sammy quits his job as a cashier.ComplicationAn intensification of the conflict in a story or play. Complication builds up, accumulates, and develops the primary or central conflict in a literary work.Frank O'Connor's story "Guests of the Nation" provides a striking example, as does Ralph Ellison's "Battle Royal."ConflictA struggle between opposing forces in a story or play, usually resolved by the end of the work. The conflict may occur within a character as well as between characters. Lady Gregory's one-act play The Rising of the Moon exemplifies both types of conflict as the Policeman wrestles with his conscience in an inner conflict and confronts an antagonist in the person of the ballad singer.ConventionA customary feature of a literary work, such as the use of a chorus in Greek tragedy, the inclusion of an explicit moral in a fable, or the use of a particular rhyme scheme in a villanelle. Literary conventions are defining features of particular literary genres, such as novel, short story, ballad, sonnet, and play.DenouementThe resolution of the plot of a literary work. It involves the “tying up of loose ends.” The denouement of Hamlet takes place after the catastrophe, with the stage littered with corpses. During the denouement Fortinbras makes an entrance and a speech, and Horatio speaks his sweet lines in praise of Hamlet.DialogueThe conversation of characters in a literary work. In fiction, dialogue is typically enclosed within quotation marks. In plays, characters' speech is preceded by their names.DictionThe selection of words in a literary work. A work's diction forms one of its centrally important literary elements, as writers use words to convey action, reveal character, imply attitudes, identify themes, and suggest values. We can speak of the diction particular to a character, as in Iago's and Desdemona's very different ways of speaking in Othello. We can also refer to a poet's diction as represented over the body of his or her work, as in Donne's or Hughes's diction.ExpositionThe first stage of a fictional or dramatic plot, in which necessary background information is provided. Ibsen's A Doll's House, for instance, begins with a conversation between the two central characters, a dialogue that fills the audience in on events that occurred before the action of the play begins, but which are important in the development of its plot.FableA brief story with an explicit moral provided by the author. Fables typically include animals as characters. Their most famous practitioner in the west is the ancient Greek writer Aesop, whose "The Dog and the Shadow" and "The Wolf and the Mastiff" are included in this book.Falling actionIn the plot of a story or play, the action following the climax of the work that moves it towards its denouement or resolution. The falling action of Othello begins after Othello realizes that Iago is responsible for plotting against him by spurring him on to murder his wife, Desdemona.FictionAn imagined story, whether in prose, poetry, or drama. Ibsen's Nora is fictional, a "make-believe" character in a play, as are Hamlet and Othello. Characters like Robert Browning's Duke and Duchess from his poem "My Last Duchess" are fictional as well, though they may be based on actual historical individuals. And, of course, characters in stories and novels are fictional, though they, too, may be based, in some way, on real people. The important thing to remember is that writers embellish and embroider and alter actual life when they use real life as the basis for their work. They fictionalize facts, and deviate from real-life situations as they "make things up."Figurative languageA form of language use in which writers and speakers convey something other than the literal meaning of their words. Examples include hyperbole or exaggeration, litotes or understatement, simile and metaphor, which employ comparison, and synecdoche and metonymy, in which a part of a thing stands for the whole.FlashbackAn interruption of a work's chronology to describe or present an incident that occurred prior to the main time frame of a work's action. Writers use flashbacks to complicate the sense of chronology in the plot of their works and to convey the richness of the experience of human time. Faulkner's story "A Rose for Emily" includes flashbacks.FoilA character who contrasts and parallels the main character in a play or story. Laertes, in Hamlet, is a foil for the main character; in Othello, Emilia and Bianca are foils for Desdemona.ForeshadowingHints of what is to come in the action of a play or a story. Ibsen's A Doll's House includes foreshadowing as does Synge's Riders to the Sea. So, too, do Poe's "Cask of Amontillado" and Chopin's "Story of an Hour."HyperboleA figure of speech involving exaggeration. John Donne uses hyperbole in his poem: "Song: Go and Catch a Falling Star."ImageryThe pattern of related comparative aspects of language, particularly of images, in a literary work. Imagery of light and darkness pervade James Joyce's stories "Araby," "The Boarding House," and "The Dead." So, too, does religious imagery.IronyA contrast or discrepancy between what is said and what is meant or between what happens and what is expected to happen in life and in literature. In verbal irony, characters say the opposite of what they mean. In irony of circumstance or situation, the opposite of what is expected occurs. In dramatic irony, a character speaks in ignorance of a situation or event known to the audience or to the other characters. Flannery O'Connor's short stories employ all these forms of irony, as does Poe's "Cask of Amontillado."MetaphorA comparison between essentially unlike things without an explicitly comparative word such as like or as. An example is "My love is a red, red rose,"MetonymyA figure of speech in which a closely related term is substituted for an object or idea. An example: "We have always remained loyal to the crown." See Synecdoche.NarratorThe voice and implied speaker of a fictional work, to be distinguished from the actual living author. For example, the narrator of Joyce's "Araby" is not James Joyce himself, but a literary fictional character created expressly to tell the story. Faulkner's "A Rose for Emily" contains a communal narrator, identified only as "we." See Point of view.OnomatopoeiaThe use of words to imitate the sounds they describe. Words such as buzz and crack are onomatopoetic. The following line from Pope's "Sound and Sense" onomatopoetically imitates in sound what it describes:When Ajax strives some rock's vast weight to throw,The line too labors, and the words move slow.Most often, however, onomatopoeia refers to words and groups of words, such as Tennyson's description of the "murmur of innumerable bees," which attempts to capture the sound of a swarm of bees buzzing.ParableA brief story that teaches a lesson often ethical or spiritual. Examples include "The Prodigal Son," from the New Testament, and the Zen parable, "Learning to Be Silent." See Fable.ParodyA humorous, mocking imitation of a literary work, sometimes sarcastic, but often playful and even respectful in its playful imitation. Examples include Bob McKenty's parody of Frost's "Dust of Snow" and Kenneth Koch's parody of Williams's "This is Just to Say."PersonificationThe endowment of inanimate objects or abstract concepts with animate or living qualities. An example: "The yellow leaves flaunted their color gaily in the breeze." Wordsworth's "I wandered lonely as a cloud" includes personification.PlotThe unified structure of incidents in a literary work. See Conflict, Climax, Denouement, and Flashback.Point of viewThe angle of vision from which a story is narrated. See Narrator. A work's point of view can be: first person, in which the narrator is a character or an observer, respectively; objective, in which the narrator knows or appears to know no more than the reader; omniscient, in which the narrator knows everything about the characters; and limited omniscient, which allows the narrator to know some things about the characters but not everything.ProtagonistThe main character of a literary work--Hamlet and Othello in the plays named after them, Gregor Samsa in Kafka's Metamorphosis, Paul in Lawrence's "Rocking-Horse Winner."RecognitionThe point at which a character understands his or her situation as it really is. Sophocles' Oedipus comes to this point near the end of Oedipus the King; Othello comes to a similar understanding of his situation in Act V of Othello.ResolutionThe sorting out or unraveling of a plot at the end of a play, novel, or story. It is also called the denouement. See Plot.ReversalThe point at which the action of the plot turns in an unexpected direction for the protagonist. Oedipus's and Othello's recognitions are also reversals. They learn what they did not expect to learn. See Recognition and also Irony.Rising actionA set of conflicts and crises that constitute the part of a play's or story's plot leading up to the climax. See Climax, Denouement, and Plot.SatireA literary work that criticizes human misconduct and ridicules vices, stupidities, and follies. Swift's Gulliver's Travels is a famous example. Chekhov's Marriage Proposal and O'Connor's "Everything That Rises Must Converge," have strong satirical elements.SettingThe time and place of a literary work that establish its context. The stories of Sandra Cisneros are set in the American southwest in the mid to late 20th century, those of James Joyce in Dublin, Ireland in the early 20th century.SimileA figure of speech involving a comparison between unlike things using like, as, or as though. An example: "My love is like a red, red rose."StyleThe way an author chooses words, arranges them in sentences or in lines of dialogue or verse, and develops ideas and actions with description, imagery, and other literary techniques. See Connotation, Denotation, Diction, Figurative language, Image, Imagery, Irony, Metaphor, Narrator, Point of view, Syntax, and Tone.SubjectWhat a story or play is about; to be distinguished from plot and theme. Faulkner's "A Rose for Emily" is about the decline of a particular way of life endemic to the American south before the civil war. That is its subject/topic. Its plot concerns how Faulkner describes and organizes the actions of the story's characters. Its theme is the overall meaning Faulkner conveys.SubplotA subsidiary or subordinate or parallel plot in a play or story that coexists with the main plot. The story of Rosencrantz and Guildenstern forms a subplot with the overall plot of Hamlet.SymbolAn object or action in a literary work that means more than itself, that stands for something beyond itself. The glass unicorn in The Glass Menagerie, the rocking horse in "The Rocking-Horse Winner," the road in Frost's "The Road Not Taken"--all are symbols in this sense.SynecdocheA figure of speech in which a part is substituted for the whole. An example: "Lend me a hand." See Metonymy.SyntaxThe grammatical order of words in a sentence or line of verse or dialogue. The organization of words and phrases and clauses in sentences of prose, verse, and dialogue. In the following example, normal syntax (subject, verb, object order) is inverted:"Whose woods these are I think I know."ThemeThe idea or message of a literary work abstracted from its details of language, character, and action, and cast in the form of a generalization. Theme must be stated in a sentence. It is not simply a topic.ToneThe implied attitude of a writer toward the subject and characters of a work, as, for example, Flannery O'Connor's ironic tone in her "Good Country People." See Irony.UnderstatementA figure of speech in which a writer or speaker says less than what he or she means; the opposite of exaggeration. The last line of Frost's "Birches" illustrates this literary device: "One could do worse than be a swinger of birches."。