Glossary of Investment Terms

$100 DJI Grew To (Investment Companies)—the amount to which a $100 investment (divided equally) in each of the 30 Dow Jones Industrial Stocks would have grown from year end 1960 (or year in which the company began operations).

$100 Net Assets Grew To (Investment Companies)—the amount to which $100 invested in the net assets of a closed-end fund would have grown from year end 1960 (or after the first year of the company's operation), assuming all capital gains distributions had been reinvested in additional shares.

Operating Earnings—earnings (profits) left after subtracting the cost of goods sold and marketing, general, and administrative costs from sales. Sometimes referred to as EBITDA (earnings before interest, taxes, depreciation, and amortization).

Operating Income—see Operating Earnings.

Operating Margin—operating earnings as a percentage of sales.

Operating Profit—see Operating Earnings.

Option—a contract that gives a buyer the right to buy or sell 100 shares of stock within a certain period of time and at a pre-established price. A call option gives an investor the right to buy 100 shares of stock at a specified price, while a put option allows him to sell 100 shares.

Output Per Hour (Nonfarm)—a Labor Department index of what U.S. non-agricultural workers produce, on average, in an hour. An increase in this index over time is an indicator of productivity gains.