LIQUIDITY - The ability of an investment to be easily converted into cash with little- to no loss of capital and a minimum of delay.

MARKET - A public place where buyers and sellers conduct transactions, either directly or via intermediaries.

NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS (NASDAQ) - The New York-based U.S. stock exchange that specializes in technology companies.

OPTION - An agreement that conveys the right, but not the obligation, to the holder to buy or sell a particular security at a stipulated price within a stated period of time.

PORTFOLIO - An investor’s collection of investment holdings, usually with reference to its composition.

PROSPECTUS - A legal document, required by the Securities Act of 1933, setting forth the complete history and current status of a security or fund; it must be made available whenever an offer to sell is made to the public.

RETURN - The amount of money received annually from an investment, usually expressed as a percentage.

RISK - The measurable likelihood of loss or less-than-expected returns.

SECURITIES AND EXCHANGE COMMISSION (SEC) - The U.S. regulatory authority for the securities industry.

SECURITY - The paper right to a tradable asset.

SIMPLE INTEREST - Interest that is paid on the initial investment alone.