Charles C. Mihalek, PSC

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Definitions for Investors

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Capital Appreciation 
   A rise in the market price of an asset.

Capital Gain 
   The profit realized when a capital asset is sold for a higher price than the purchase price.

Cash Equivalent 
   A security that can be readily converted into cash. Examples include treasury bills, certificates of deposit, and money market instruments and funds.

Common Stock 
   A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.

Control Person 
   (1) A director, officer or other affiliate of an issuer. (2) A stockholder who owns at least 10% of any class of a corporation’s outstanding securities.

Cost Basis 
   The price paid for an asset, including any commissions or fees, used to calculate capital gains or losses when the asset is sold.