What a firm or individual owns.

Interest that has been earned but not received.

An arrangement which enables an investor to purchase mutual fund shares regularly in large or small amounts.

A financial report sent yearly to a publicly held firm’s shareholders. This report must be audited by independent auditors.

An individual who purchases an annuity and will receive payments from that annuity.

A contract that guarantees a series of payments in exchange for a lump sum investment.

A proposal to sell a specific quantity of securities at a named price.


A sales charge levied when mutual fund units are redeemed.

A financial statement showing the nature and amount of a company’s assets, liabilities and shareholders’ equity.

A mutual fund which has an investment policy of “balancing” its portfolio generally by including bonds and shares in varying proportions influenced by the fund’s investment outlook.

Short-term bank paper with the repayment of principal and payment of interest guaranteed by the issuer’s bank.

A declining financial market.

A statistical term used to illustrate the relationship of the price of an individual security or mutual fund unit to similar securities or financial market indexes.

A proposal to buy a specific quantity of securities at a named price.

A descriptive term usually applied to high grade equity securities. Board lot: A standard number of shares for trading transactions. The number of shares in a board lot varies with the price level of the security, although in most cases a board lot is 100 shares.

A committee elected by the shareholders of a company, empowered to act on their behalf in the management of company affairs. Directors are normally elected each year at the annual meeting.

A long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.

A mutual fund whose portfolio consists primarily of bonds..

The value of net assets that belong to a company’s shareholders, as stated on the balance sheet.

An agent who handles the public’s orders to buy and sell securities, commodities, or other property. A commission is generally charged for this service.

An advancing financial market.

Purchasing a security partly with borrowed money.


Generally, the money or property used in a business. The term is also used to apply to cash in reserve, savings, or other property of value.

The loss that results when a capital asset is sold for less than its purchase price.

The loss that results when a capital asset is sold for less than its purchase price.


A bond unsecured by any pledge of property. It is supported by the general credit of the issuing corporation.

Request BMA Trade to send account opening form or fill the account opening form aO/DD/ local bank’s cheque in favor BMA Capital Management Limited or CDC Transfer Order in favor of BMA Trade. Attested Copies of CNICs

You will be couriered a BMA Trade Trading Terminal CD for java based desktop application or use BMA Trade web portal for order execution or alternatively you may also call on +92 21 111 262 872 or drop email at bmatrade@bmacapital.com


For tax purposes, earned income is generally the money made by an individual from employment. It also includes some taxable benefits. Earned income is used as the basis for calculating RRSP maximum contribution limits.

A financial statement showing the income and expenses of a business over a period of time. Also known as an income statement or profit and loss statement.

The net worth of a company. This represents the ownership interest of the hareholders (common and preferred) of a company. For this reason, shares are often known as equities.

A mutual fund whose portfolio consists primarily of common stocks.

The principal amount, or value at maturity, of a debt obligation. Also known as the par value or denomination.


The principal amount, or value at maturity, of a debt obligation. Also known as the par value or denomination.

The price a willing buyer would pay a willing seller if neither was under any compulsion to buy or sell. The standard at which property is valued for a deemed disposition.

An individual or institution occupying a position of trust. An executor, administrator or trustee. Hence, “fiduciary” duties.

The policy pursued by government to manage the economy through its spending and taxation powers.

Assets of a long-term nature, such as land and buildings.

A plan that provides the mutual fund investor with fixed-dollar payments at specified intervals, usually monthly or quarterly.

Any corporate liability that will not mature within the following fiscal period. For example, long-term mortgages or outstanding bonds.

Investments that generate a fixed amount of income that does not vary over the life of the investment.

A plan through which the mutual fund investor’s holdings are fully depleted through regular withdrawals over a set period of time. A specific amount of capital, together with accrued income, is systematically exhausted.

A sales charge levied on the purchase o mutual fund units.

A method of evaluating the future prospects of a company by nalyzing its financial statements. It may also involve interviewing the management of the company.


Shares of companies whose earnings are expected to increase at an above-average rate. Growth stocks are often typified by their low yields and relatively high price/earnings rations. Their prices reflect investors’ belief in their future earnings in growth.

A deposit instrument paying a predetermined rate of interest for a specified term, available from banks, trust companies and other financial institutions.


Mutual funds that invest primarily in fixed-income securities such as bonds, mortgages and preferred shares. Their primary objective is to produce income for investors, while preserving capital.

A mutual fund that matches its portfolio to that of a specific financial market index, with the objective of duplicating the general performance of the market in which it invests.

A condition of increasing prices. In Pakistan, inflation is generally measured by the Consumer Price Index.

Payments made by a borrower to a lender for the use of the lender’s money. A corporation pays interest on bonds to its bondholders.

A mutual fund that invests in securities of a number of countries.

The amount by which the price of a warrant or call option exceeds the price at which the warrant or option may be exercised.

Investment counsel to a mutual fund. Also may be the manager of a mutual fund.

A corporation or trust whose primary purpose is to invest the funds of its shareholders.

A firm or individual which furnishes investment advice for a fee.

A securities firm.

A term generally interchangeable with “mutual fund.”

A term generally interchangeable with “mutual fund.”


An agreement whereby an investor agrees to make a series of purchases of mutual fund units.

The financial advantage of an investment that controls property of greater value than the cash invested. Leverage is usually achieved through the use of borrowed money.

All debts or amounts owing by a company in the form of accounts payable, loans, mortgages and long-term debts.

An annuity under which payments are guaranteed for the life of the annuitant.

A plan through which a mutual fund investor’s holdings are fully depleted while providing maximum periodic income over the investor’s lifetime..

Refers to the ease with which an investment may be converted to cash at a reasonable price.

Commissions charged to holders of mutual fund units. (See sales charge.)

A mutual fund that charges a commission to purchase its shares.


The entity within a mutual fund complex responsible for the investment of the fund’s portfolio and/or the administration of the fund. It is compensated on a percentage of the fund’s total assets.

A measure of the total costs of operating a fund as a percentage of average total assets.

The sum paid to the investment company’s adviser or manager for supervising its portfolio and administering its operations.

An investor’s equity in the securities in his or her account. The margin purchaser puts up a portion of the value of the securities, borrowing the remainder from the investment dealer.

The rate of tax on the last dollar of taxable income.

A vehicle used to denote trends in securities markets. The most popular in Pakistan is the Pakistan Stock Exchange’s KSE 100 Index.

In the case of a security, market price is usually considered the last reported price at which the stock or bond is sold.

The date at which a loan or bond or debenture comes due and must be redeemed or paid off.

A sector of the capital market where short term obligations such as Treasury bills, commercial paper and bankers’ acceptances are bought and sold.

A type of mutual fund that invests primarily in treasury bills and other low-risk, short-term investments.

Another term for defined contribution pension plan.

A mutual fund that invests in mortgages. Portfolios of mortgage funds usually consist of first mortgages on Canadian residential property, although some funds also invest in commercial mortgages.

Certificates that represent ownership in a pool of mortgages. The holders of these securities receive regular payments of principal and interest.

An investment entity that pools shareholder or unit holder funds and invests in various securities. The units or shares are redeemable by the fund on demand by the investor. The value of the underlying assets of the fund influences the current price of units.


The value of all the holdings of a mutual fund, less the fund’s liabilities.

Net asset value of a mutual fund divided by the number of shares or units outstanding. This represents the base value of a share of unit of a fund and is commonly abbreviated to NAVPS.

A mutual fund that does not charge a fee for buying or selling its shares.


Any number of securities that represents less than a board lot.

An open-end mutual fund continuously issues and redeems units, so the number of units outstanding varies from day to day. Most mutual funds are open-ended.

The right or obligation to buy or sell a specific quantity of a security at a specific price within a stipulated period of time.

A securities market that exists for securities not listed on stock exchanges. Bonds, money market securities and many stocks are traded on the over-the-counter market.


The principal amount, or value at maturity, of a debt obligation. It is also known as the denomination or face value. Preferred shares may also have par value, which indicates the value of assets each share would be entitled to if a company were liquidated.

An amount that reduces the allowable contribution limit to an RRSP based on the benefits earned from the employee’s pension plan or deferred profit sharing plan.

A formal arrangement through which the employer, and in most cases the employee, contribute to a fund to provide the employee with a lifetime income after retirement.

Life insurance coverage for which the policyholder pays an annual premium, generally for the life of the insured. This type of policy features a savings component, known as the cash surrender value.

All the securities which an investment company or an individual investor owns.

An ownership security, senior to the common stock of a corporation, with preferred claim on assets in case of liquidation and a specified annual dividend.

The amount by which a bond’s selling price exceeds its face value. Also, the amounts paid to keep an insurance policy in force.

The current worth of an amount to be received in the future. In the case of an annuity, present value is the current worth of a series of equal payments to be made in the future.

The market price of a common share divided by its earnings per share for 12 months.

A new security issue, or one that is made available to investors for the first time.

The person for whom a broker executes an order, or a dealer buying or selling for his or her own account. Also, an individual’s capital or the face amount of a bond.

The document by which a corporation or other legal entity offers a new issue of securities to the public.


A type of mutual fund withdrawal plan that provides investors with an income based on a percentage of the value of units held.

A mutual fund that invests primarily in residential and/or commercial real estate to produce income and capital gains for its unitholders.

A closed-end investment company that specializes in real estate or mortgage investments.

Preferred shares or bonds that giver the issuing corporation an option to repurchase securities at a stated price. These are also known as callable securities.

A plan that enables a contributor, on a tax deferral basis, to accumulate assets on behalf of a beneficiary to pay for a post secondary education.

A maturity option available for RRSP assets to provide a stream of income at retirement.

A retirement savings plan to hold amounts deducted from taxable income, within certain limits, in a tax deferred state. There are various investment options and a tax deferral on investment income and gains. Available to individuals to and including 69 years of age, but must be collapsed by the end of the year in which the holder turns 69 years of age.

The accumulated profits of a company. These may or may not be reinvested in the business.

The accumulated profits of a company. These may or may not be reinvested in the business.

Options granted to shareholders to purchase additional shares directly from the company concerned. Rights are issued to shareholders in proportion to the securities they may hold in a company.

The possibility of loss; the uncertainty of future returns.


In the case of mutual funds, these are commissions charged to holder of fund units, usually based on the purchase or redemption price. Sales charges are also known as “loads.”

Provincial legislation regulating the underwriting, distribution and sale of securities.

A document signifying part ownership in a company. The terms “share” and “stock” are often used interchangeably.

The amount of a corporation’s assets belonging to its shareholders (both common and preferred) after allowance for any prior claim.

The sale of a security made by an investor who does not own the security. The short sale is made in expectation of a decline in the price of a security, which would allow the investor to then purchase the shares at a lower price in order to deliver the securities earlier sold short.

An abbreviated and simplified prospectus distributed by mutual funds to purchasers and potential purchasers of units or shares (see prospectus).

A mutual fund that concentrates its investments on a specific industrial or economic sector or a defined geographical area.

The difference between the rates at which money is deposited in a financial institution and the higher rates at which the money is lent out. Also, the difference between the bid and ask price for a security.

Rights to purchase a corporation’s stock at a specified price.

Rights to purchase a corporation’s stock at a specified price.

Plans offered by mutual fund companies that allow unitholders to receive payment from their investment at regular intervals.


An income tax credit that directly reduces theamount of income tax paid by offsetting other income tax liabilities.

A reduction of total income before the amount of income tax payable is calculated.

A method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc., to identify patterns.

Temporary life insurance that covers the policyholder for a specific time.

An annuity that pays a fixed amount each year until it is exhausted in the year that the annuitant turns 90.

A securities transaction.

Short-term government debt. Treasury bills bear no interest, but are sold at a discount. The difference between the discount price and par value is the return to be received by the investor.

An instrument placing ownership of property in the name of one person, called a trustee, to be held by the trustee for the use and benefit of some other person.


An investment firm that purchases a security directly from its issuer for resale to other investment firms or the public or sells for such issuer to the public.

An unincorporated fund whose organizational structure permits the conduit treatment of income realized by the fund.

A life insurance term policy that is renewed each year and which has both an insurance component and an investment component. The investment component invests excess premiums and generates returns to the policyholder.


An annuity providing a fluctuating level of payments, depending on the performance of its underlying investments.

In pension terms, the right of an employee to all or part of the employer’s contributions, whether in the form of cash or as a deferred pension.

A plan offered by mutual fund companies whereby an investor agrees to invest a predetermined amount on a regular basis.


Certificates allowing the holder the opportunity to buy shares in a company at a stated price over a specified period. Warrants are usually issued in conjunction with a new issue of bonds, preferred shares or common shares.

An account offered by investment dealers whereby investors are charged an annual management fee based on the value of invested assets.


Annual rate of return received on investments, usually expressed as a percentage of the market price of the security.

A graphic representation of the relationship among yields of similar bonds of differing maturities.

The annual rate of return an investor would receive if a bond were held until maturity.


A bond that pays no interest and is initially sold at a discount.