urnham Securities, Inc. Fuhrman Division
Glossary of Investment Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

AMERICAN DEPOSITORY RECEIPTS (ADR) Certificates issued by a U.S. Depository Bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR's. "Unsponsored" ADR's do not receive such assistance. ADR's carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American Depository Shares (ADS) are a similar form of certification.

ANALYST Employee of a brokerage or fund management house who studies companies and makes buy and sell recommendations on their stocks. Most specialize in a specific industry.

ANNUAL REPORT Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statemen