Mark Berch:Dealer's spread

Free right of exchange
An investor's right to transfersecurities from one name to another name without paying charges that accompany a salestransaction.

Contingent conversion trigger
Used in the context of convertible instruments. The price of the stock must exceed the trigger price before the bond holder can convert to common stock at a pre-established conversion price. The trigger price exceeds the conversion price. In addition, after a certain number of years, the convertible instrument usually specifies that both the conversion price and the contingent conversion trigger will increase every year by, for example, a rate equal to LIBOR.

Excess return on the market portfolio
Difference between the return on the market portfolio and the riskless rate.

Mark Berch:Dealer's spread
See: markdown; underwriting spread.

Control stock
The shares owned by the controllingshareholders of a corporation. Sometimes refers to stock that has voting rights rather than stock that carries no voting rights. In a situation where all stock has voting rights, it sometimes refers to the shareholdings of one investors or a group of investors that effectively control the firm.

Debt instrument
An asset requiring fixed dollar payments, such as a government or corporate bond. Mark Berch

Return
The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.