		GLOSSARY OF TERMS
 	     USED IN WALL $TREET RAIDER

ANTITRUST LAWS--Laws designed to prevent unfair business
practices, including monopolies or other activities intended
to reduce competition.  In W$R, as in the real world, your
company may be sued by competitors for antitrust damages or
by the public for price-fixing, and may also be restrained by
various government enforcement agencies from taking over
competing companies in an industry your companies already
dominate.

BAD DEBT RESERVE--For banks, an accounting entry on their books,
designed to be a "reserve" for anticipated future bad debt losses.
The reserve is evaluated each quarter and if it is too low, an
amount is added to the reserve and charged as an expense against
operating income of the bank.  Actual bad debts, when incurred,
are thus applied against (reduce) the reserve, rather than being
charged directly against income.  Thus, bad debt expenses tend to
be spread out more evenly over a period of years.

BANKRUPTCY--In simple terms, going broke; either because the
debtor (a person or a corporation) can't pay debts as they come
due, or in some cases because the value of remaining assets is
far below the amount owed, even though the debtor may still have
considerable amounts of cash.  In W$R, a player is ejected from
the game in utter disgrace if he or she goes bankrupt.  If a
corporation goes completely bankrupt, all of its assets are used to
pay off as much of its debt as possible, and the lender takes a bad
debt loss on the rest; all stock of shareholders becomes worthless
and is canceled.  In a "Chapter 11" bankruptcy, the company
continues in business, while its capital structure is "reorganized."
See "CHAPTER 11 BANKRUPTCY" below.

BOOK VALUE--Net worth.  In the real world, "book" value usually
refers to the COST of a company's assets, as carried on its books,
less the amount of its debts. (Cost doesn't necessarily bear any
relationship to what the assets are currently worth.)  In W$R, all
marketable assets (stocks and bonds) are reflected at current
market value, so "book value" or "net book value" in W$R more
nearly reflects a company's net worth and creditworthiness.
However, a company's stock may trade at much more or less than
its "book value," depending on whether its business is highly
profitable or not and other factors.

BROAD TAPE--The teletype found in most brokers' offices that grinds
out financial news, earnings reports, and related information all
day long, in text form.  (In contrast to the "ticker tape," which
mostly shows stock prices and symbols each time a stock trade
occurs.)  In W$R, the "Broad Tape" is activated by the command
"TAPE", which will give you the most recent corporate earnings
release to come over the wire, in text format.

BUSINESS ASSETS--In W$R, the operating assets of a business; a
catchall term to describe plant & equipment, inventory,
receivables, trucks, planes, ships or whatever kind of operating
assets a company invests money in to increase the size of its
business and its sales.  In W$R, $1 of business assets is assumed
to result in $1 per year of sales.

BUYBACK--A transaction in which a corporation buys (and cancels) its
own stock from certain shareholders, which will tend to increase the
per share value of the remaining shareholders' stock, if the stock
is bought back at a discount to net worth per share.  In W$R, such
purchases from "the Public" increase the stock's market price, but
"Greenmail" buybacks from a specific corporate shareholder do not.

CD'S OR CERTIFICATES OF DEPOSIT--Interest-earning deposits in a
bank.  In W$R, all cash of players and companies (except banks) is
assumed to be fully invested at all times in CD's, earning interest
quarterly.  It is not necessary in W$R to convert CD's back to cash
to spend the money.  The "CD Rate" is the rate of interest players
and companies earn on their cash, and is the rate that banks pay
out on CD deposits.

CAPACITY GROWTH--Growth in "business assets" such as plant and
equipment.  In W$R, as in the real world, an industry's
profitability will tend to suffer if industry-wide capacity (supply)
grows faster than demand for that industry's product for very long
(or to improve if demand grows faster).

CAPITAL CONTRIBUTION--Money injected into, or "contributed" to a
subsidiary corporation by its controlling shareholder.  In W$R, the
controlling shareholder must own at least 80% of the subsidiary's
stock before it is allowed to make a contribution of capital to the
subsidiary.  A capital contribution is used to move money from a
parent corporation to a subsidiary when the subsidiary needs the
funds for some reason, such as when the subsidiary has a tax loss
carryover that will shelter any income it may earn from investing
the funds.

CHAPTER 11 BANKRUPTCY--Also sometimes referred to as "operating
bankruptcy," where the debtor continues in operation, rather than
being dismantled.  A less severe form of corporate bankruptcy,
where the troubled corporation gets some relief from its debts, in
the hope that it may survive.  In W$R, this means that the bank or
junk bond holders write off part of what the company owes them,
and 3/4 of all current stockholders' shares are canceled.

CONTROLLED CORPORATION--In W$R, a corporation that is at least
20% owned by a player or by a single corporation is considered to
be under the control of its largest single shareholder (and of
whomever might also control that shareholder company, if anyone).

CYCLICAL--As applied to an industry, an up-and-down or boom-and-bust
cycle that is typical of the industry, where demand grows very
rapidly for a while, and then stops or shrinks for a while. In other
words, an industry that is not characterized by steady or
predictable growth.

DEMAND DEPOSITS--Non-interest-bearing deposits in a bank, which the
bank can lend out at interest.  In W$R, banks' demand deposits
usually grow at a rate of about 3 to 5% per year.  See "CD's OR
CERTIFICATES OF DEPOSIT" above.

DIVIDEND--A distribution of profits by a corporation to its
shareholders, usually in the form of cash.

DIVIDEND PAYOUT RATIO--The percentage of a company's annual
reported earnings that is paid out to shareholders as regular
dividends.  State laws usually prohibit a company from paying out
dividends when net worth is negative, although an exception is
generally made for dividends paid out of current earnings, where
the company is currently profitable ("springing dividends").  In
W$R, the dividend payout ratio for a company is applied to the last
full year's earnings to determine the amount of dividends paid out
at the end of a quarter (no dividend is paid if the previous year
was a loss year).

DIVIDEND YIELD--The rate of return on investment in a stock, based
on the dividends it pays, expressed as a percent of the current
value of the stock.  For example, if a stock sells for $100 a share
and pays an annual dividend at the rate of $6 per share, the
dividend yield would be 6% (6/100).

EPS--An abbreviation for "earnings per share."  Since all companies
in W$R have 100 million shares of stock outstanding, if a company
earns $4.00 per share, that means it earned a total of $400 million.
A company's EPS is usually a major determinant of its stock price,
in the real world as well as in W$R.

EQUITY METHOD OF ACCOUNTING--A recognized method for corporations
to account for their investment in subsidiary corporations, usually
subsidiaries in which they own at least 20% of the stock, but
not enough stock to "consolidate" the subsidiary's finances with
the parent company's in full.  However, the parent is allowed to
include its percentage share of the subsidiary's earnings in the
parent's reported earnings.  W$R adopts this latter rule for any
company that owns 20% or more of another company (even if it does
not control the other company).

FDIC--Abbreviation for "Federal Deposit Insurance Corporation," the
federal agency that insures bank deposits, in case a bank goes
broke.  In W$R, the FDIC may force a bank to cut or eliminate
dividend payments if in financial trouble.  Or, as in the real
world, if a bank gets in too deep a financial pit, the FDIC may
pull the plug by taking over the bank, canceling the stock held
by former stockholders and reviving the bank, under new ownership,
often after an injection of new capital to restore the bank to
solvency.

FTC--Abbreviation for "Federal Trade Commission," the federal agency
that acts as a watchdog (more often as a lapdog) to prevent consumer
fraud and other unfair trade practices.  It also may occasionally
block mergers and takeover attempts that it feels could tend to
reduce competition in the marketplace.

FEDERAL FUNDS--Funds banks borrow from each other to meet certain
Federal Reserve requirements, usually on a very temporary basis.
In W$R, this term refers to money that banks borrow from each other
or elsewhere when they run short of funds and have no more bonds to
sell off.  "Federal Funds" are quickly paid off in W$R when a
borrowing bank obtains the money to do so.

GNP--Abbreviation for "Gross National Product."  See definition of
"GROSS NATIONAL PRODUCT."

GREENMAIL--A practice made popular in recent years by certain
corporate raiders who take a large position in a target company's
stock.  Management of the target company, fearful of a takeover that
would cause them to lose their jobs, chauffeured limousines, Learjets
and other God-given rights, quite consistently find it to be in the
company's best interest to buy back the raider's stock holdings for
a price well above current market prices, in exchange for a promise
by the raider to go away and pick on some other company.  The
money extracted from the target company is frequently referred to
as "greenmail," perhaps due to the uncanny resemblance of such a
payment to its somewhat unsavory cousin, blackmail.  In W$R, a
"greenmail" buyback can be made of the stock held by a
non-controlling corporate shareholder, but not of stock held by a
player, and not of stock held by a company controlled by the same
player whose company is paying the greenmail.

GROSS NATIONAL PRODUCT-- An economic statistic that represent the
estimated value of all goods and services produced in a country in a
year, which is a measure of an economy's overall size and its level
of activity.

HOLDING COMPANY--A corporation that does not actively engage in
business itself, but instead holds the stocks of one or more
operating subsidiaries.  In W$R, any company, other than a bank or
insurance company, that no longer has any "business assets,"
including a "shell corporation" that has gone bankrupt or gone
through a complete liquidation, is classified as a "holding
company."

INSURANCE IN FORCE--A technical term used in the insurance industry
to describe the amount of insurance a company has written, and
which is still in force.  In W$R, it is used more loosely, and is
deemed to be proportional to the insurance company's "policy
reserves."  See definition of "POLICY RESERVES" below.

JUNK BONDS--In Street language, high-yielding, high-risk bonds
issued by companies of dubious creditworthiness, often for the
purpose of taking over another company or for a "leveraged buyout"
in which the company buys back most of its own stock, allowing
holders of a few shares (usually management) to become the only
remaining shareholders.  In W$R, junk bonds are any bonds issued by
a corporation; they pay interest at a rate of 15% of face value,
even if issued for less (or more) than face.  As in the real world,
companies in W$R that issue a lot of junk bonds face a high risk of
bankruptcy if their business hits a few rough spots.

LBO OR LEVERAGED BUYOUT--A transaction in which one or a few people
buy a small part of the stock of a company and then have the company
borrow enough money to buy out all of the other shareholders, so
that the buyers obtain most or all of the stock of the company with
little or no investment on their part.  In some cases, they may even
extract dividends from the company afterwards, in order to quickly
recoup part or all of their investment (or more).  In W$R, a player
(or a company controlled by the player) can sometimes do an LBO by
buying minimal control of a target company (say 20%), and then
having the company borrow or issue junk bonds to finance a buyback
of the other 80% of its stock (using the "BI" or "GM" commands),
leaving the acquiring player or company with 100% ownership.

LINE OF CREDIT--An amount a lender, such as a bank, agrees in
advance to lend to a customer, if the customer wishes to borrow it.
In W$R, each player and company normally has a line of credit
allowing him or it to borrow up to a maximum of 1 times net worth.
If a player controls the bank that he or his controlled company
borrows from, the line of credit limit goes up to 3 times net worth.
If an opposing player controls the lending bank, then the player or
his company cannot borrow any more than is already owed to that
bank--that is, the line of credit is cut off.

LIQUIDATION--A corporate transaction in which a parent corporation,
in effect, merges a wholly-owned subsidiary corporation into itself,
so that all of the assets, debts, etc. of the subsidiary become
property or debts of the parent, and the subsidiary corporation
ceases to have any further activity, or even ceases to exist.  In
W$R, a liquidation is as described in the preceding sentence, except
that its stock becomes a publicly-owned "shell" trading for $2 or $3
a share, and can be used as a holding company (or to enter another
industry) by any player who wishes to "recycle" the company by
buying up its stock and injecting substantial capital into it.

LOAN PORTFOLIO--The loans made by a bank, on which it hopes to earn
interest.  The value of a bank's loan portfolio is offset by a
reserve for potential bad debts.  See definition of "BAD DEBT
RESERVE" above.

MARKET SHARE--A company's percentage share of total sales in a
particular industry.  In W$R, this is the same as the company's
share of "business assets" in that industry.  In general, the larger
a company's market share percentage, the more profitable the company
tends to be, compared to other companies in the industry.

MERGER--In the real corporate financial world, the term usually
refers to a transaction where the assets and liabilities of two
companies are legally brought together in a single "surviving"
corporation.  It also is often used to describe stock-for-stock
swaps between a company and the shareholders of a target company,
where the target company ends up as a wholly-owned subsidiary of the
acquiring company.  A "merger" is W$R (using the "MG" command) is of
the latter variety.  The "LQ" (liquidation) command can often be
used in W$R to effect what is essentially a merger of the type
described in the first sentence of this definition.

P/E RATIO--Wall Street jargon for "price/earnings ratio," or the
multiple of earnings per share that a stock sells for.  For
example, a $100 stock of a company earning $5 per share would be
said to have a P/E ratio (or earnings multiple) of 20; that is, the
stock sells for 20 times its earnings per share.  Stocks of rapidly
growing companies often sell at high P/E ratios, because the stock
market is "anticipating" much higher earnings in the future.

POLICY RESERVES--Accounting reserves insurance companies are
required to set up on their books when they sell an insurance
policy.  Policy reserves are, in effect, estimates of how much
money the insurer needs to set aside to pay future insurance claims.
They might also be considered as a kind of "loan" (without
interest) from the insurance company's customers.  Most insurance
companies make most or all of their profits from investing these
reserves for the period between the time they collect a premium and
when they eventually have to pay a claim.  In W$R, an insurer's
policy reserves are assumed to grow at the same rate as its
"insurance in force," defined above.

PUBLIC OFFERING--An issuance of securities for sale to the public,
usually (but not always) by the issuing company.  In W$R, a Public
Offering (using the "PO" command) is a sale of new stock by a
corporation to the Public for cash, to raise new capital for the
corporation.  (By contrast, a "private offering" is a sale of stock
to only one or a few investors--see "White Knight" ("WK") command,
an example of a private stock offering in W$R.)

R & D (RESEARCH AND DEVELOPMENT)--R & D expenditures are funds spent
to create new products or production processes or to improve
existing ones.  Since R & D expenses usually penalize current
earnings, even though they may greatly increase long run profits,
managements are often tempted to cut out R & D spending in the short
term to make earnings look better.  In W$R, a companies in certain
industries are faced with this same choice between short-term vs.
long-term profitability, in deciding how much money to spend on
R & D.  Besides lowering current earnings, a company runs the
risk that money spent on R & D projects will not even pay off in the
long run.

RETURN ON EQUITY--A way of calculating a company's level of
profitability; a percentage figure determined by dividing its net
income by its net worth.  Returns on equity are typically in the
10 to 15% range for most American corporations.  Returns over 20%
are considered to be unusually good.  In W$R, returns on equity
tend to be very much in the same range as in the real world.

SEC--Abbreviation for "Securities and Exchange Commission," the
federal agency charged with acting as a watchdog over investment
markets in the USA.  All publicly-traded companies are required to
regularly file financial reports with the SEC, which from time to
time takes legal action to prevent the white-shoe types from
fleecing the public investors too flagrantly.  In W$R, the SEC is
yet another government agency that may intervene at inopportune
times to block those too-clever transactions you thought you could
get away with.

"SHELL" CORPORATION--An inactive corporation that no longer
carries on any business nor has any assets or debts.  In W$R, a
corporation becomes a shell after its assets and liabilities are
"liquidated" into another company, or after it goes completely
bankrupt.  A "shell" in W$R is automatically "recycled" by issuing
a small amount of stock to the Public for cash.  It is then a
"holding company" that can be taken over and used, for example, as
a startup in a highly profitable industry.

TAKEOVER--The act of taking "control" of a corporation, by acquiring
enough of its voting stock to elect a majority of the board of
directors, thus allowing the person doing the takeover to direct the
actions of the corporation.  In W$R, a takeover may be effected
through a Tender Offer for stock held by the Public, by a stock-for-
stock "Merger," or through buying up enough stock (using the "BUY"
command) to attain control.  In W$R, the player or company doing a
takeover must always obtain a minimum of 20% of the target company's
stock in order to gain control.

TAX LOSS CARRYOVER--If a corporation has more losses than income
during a year, it will usually pay no taxes, and the net loss
becomes a "tax loss carryover" that can be used to offset taxable
income in another year.  In the real world, a corporation can carry
back a tax loss to any of the 3 preceding years, or carry it forward
to any of the 15 following years, until it is "used up."  In W$R, a
corporation is only allowed to carry a tax loss forward, not
backward in time.  You can find out if a company has a tax loss
carryover by using the "FIN" command.

TENDER OFFER--An offer by a person or company to acquire part or all
of the stock of a company, usually made at an attractive price
(considerably above the current market price of the stock).  A
"Tender Offer" is usually made as part of a takeover attempt (see
"Takeover" above), and the offer is usually only effective if a
certain minimum number of shares are "tendered" for sale.  In W$R, a
"Tender Offer" ("TO" command in the Special Transactions Submenu) is
made at a price 20% above the existing stock price, and the offer is
only effective if the buyer is able to acquire the percentage of
stock specified by the buyer.

TICKER TAPE--In a broker's office, the moving electronic display of
stock prices which shows the price of each trade of a stock (and
the number of 100-share "lots" traded) that occurs on a stock
exchange.  Stock prices are usually quoted in dollars per share and
1/8's of a dollar.  (In times past, the quotes were printed
mechanically on a narrow paper tape by a "ticker tape"
machine--hence the name.)  In W$R, the electronic "ticker tape"
moves across the top of the screen, reporting a random sampling of
one of every 5 to 10 stock trades that occurs in the 150 stocks that
make up the W$R investment universe.  Volume is not shown.

WHITE KNIGHT--A friendly or neutral company (often quite large) that
purchases a substantial percentage of the stock of a company at the
request of that company's management, in order to keep the shares
out of the hands of a potential corporate raider who might attempt
an unfriendly takeover of the company.  In W$R, the "WK" command
(Special Transactions Submenu) can be used to implement the "White
Knight Defense," enabling a company to raise money by selling
substantial block of new stock to a "neutral" company.  The funds
raised can then be used to "Buy In" ("BI" command) publicly-owned
shares, if desired, in order to make it difficult for an opponent to
buy up enough stock of the company to take control.

YIELD--The percentage rate of return on an investment, such as the
interest yield on a bond or certificate of deposit, or the dividend
yield on a stock.  Yield is a percentage calculated by dividing the
annual income from the investment by the value or cost of the
investment.  For example, a $100 stock that pays $6.00 per share in
annual dividends would be said to have a "dividend yield" of 6%
($6 dividend / $100 stock price).