For example, a warrant priced at $1 per share might guarantee you the right to buy a certain stock at $10 within the next 10 years. If the price goes up to $15, you can exercise, or use, your warrant, save $4 per share, and resell the security at a profit. If the price of the stock falls over the life of the warrant, however, the warrant becomes worthless.

Warrants are listed with a wt following the name of the stock in the stock tables of the newspaper and are traded independently of the underlying stock.

A price-weighted index, such as the Dow Jones Industrial Average (DJIA), counts changes in the prices of high-priced securities more than changes in the prices of low-priced securities. Similarly, a market capitalization-weighted index, such as the Nasdaq Composite Index, emphasizes price changes in securities with the highest market caps. (A capitalization-weighted index may also be called a market value-weighted index.)

The theory behind weighting is that price changes in the largest or most expensive securities have a greater impact on the overall economy than price changes in smaller-cap or less expensive stocks. However, some critics argue that strong market performance by the biggest or most expensive stocks can drive an index up, masking stagnant or even declining prices in large segments of the market, and providing a skewed view of the economy.

The danger of dying without a will is that a court in the state where you live will decide what happens to your assets. Their decision may not be what you would have chosen.

Although the Internet now makes it possible for all firms-and even individual investors-to benefit from high-speed communication, the largest brokerage houses are still sometimes referred to as wire houses because of the technological edge they used to enjoy.

Because world fund managers can choose from many markets, they are often able to invest in those companies providing the strongest performance in any given period.

Advocates praise the WTO for helping to create an increasingly global economy and bringing prosperity to developing nations through increased trade. Critics, however, assert that industrialized nations such the US, Canada, and the countries of the European Union have used the WTO to open trade with developing nations while disregarding these nations environmental and labor-related concerns.

Wrap accounts combine the services of a professional money manager, who chooses a personalized portfolio of stocks, bonds, mutual funds, and other investments, and a brokerage firm, which takes care of the trading and recordkeeping on the account.