See: Forecasting; Standard & Poor's 500; Technical Analysis

January Effect
Event that starts on the last day of December and ends on the fourth trading day of January--stock prices have historically tended to rise considerably. The January Effect is caused by year end selling for tax losses, recognizing capital gains, or effecting portfolio window dressing. Even though the sell off depresses the stocks, it has nothing to do with their basic worth. Bargain hunters may quickly buy in and thus, cause the January rally.

See: Capital Gain; Technical Analysis

Joint Account
An account that is owned jointly by two or more clients. Joint accounts may be set up two ways.

See: Joint Account Agreement; Joint Tenancy

Joint Account Agreement
Form used to establish a joint account at a brokerage firm or a bank. It must be signed by all account owners.

See: Joint Account; Joint Tenancy

Joint and Survivor Annuity
Annuity that makes payments for the lifetime of two or more beneficiaries (frequently husband and wife). If one annuitant passes away, payments continue to the survivor as specified in the contract.

See: Annuitant; Annuity; Beneficiary

Joint Bond
Bond that is guaranteed by a party other than the issuer or has more than one obligator--also called "joint and several bond". Prevalent use of joint bonds can be found when a parent corporation wants to guarantee the bonds of a subsidiary.

See: Debt Instrument; Guaranteed Bond; Obligator

Joint Tenancy (JT)
An account or ownership of property where there are two or more owners. There are several types of joint tenancy. State laws and the relationship between the owners will determine the type of joint account one will want to establish.

See: Joint Account; Joint Tenants By Entirety; Joint Tenants In Common; Joint Tenants With Rights of Survivorship

Joint Tenants By Entirety
Ownership of assets by a married couple where the husband or wife automatically acquires the other's share upon death.

See: Joint Tenancy; Probate

Joint Tenants In Common (JTIC)
Ownership of assets by two or more individuals. A specific ownership percentage is assigned to each individual. In the event of the death of one party, the deceased's interest passes to their estate and not to the surviving tenant(s).

See: Joint Tenancy

Joint Tenants with Right of Survivorship (JTWROS)
Ownership of assets by two or more individuals where there is not specific fractional financial interest. In the event of the death of one party, the survivor(s) receives total ownership.

See: Joint Tenancy; Probate

JT (Joint Tenancy)
An account or ownership of property where there are two or more owners.

See: Joint Account; Joint Tenants By Entirety; Joint Tenants In Common; Joint Tenants With Rights Of Survivorship

JTIC (Joint Tenants In Common)
Ownership of assets by two or more individuals. A specific ownership percentage is assigned to each individual. In the event of the death of one party, the deceased's interest passes to their estate and not to the surviving tenant(s).

See: Joint Tenancy

JTWROS (Joint Tenants With Right Of Survivorship)
Ownership of assets by two or more individuals where there is not specific fractional financial interest. In the event of the death of one party, the survivor(s) receives total ownership.

See: Joint Tenancy; Probate

Jumbo Certificate of Deposit
Certificate with a minimum denomination of $100,000.

See: Certificate Of Deposit

Junior Issue
Debt or equity issue of a corporation that is subordinate in claim to another issue of the same corporation in regard to dividends, interest, principal, or security in the event of liquidation.

See: Junior Security; Liquidation; Preferred Stock; Principal

Junior Refunding
The refinancing of government debt maturing in one to five years by issuing new securities that mature in five or more years.

See: Debt Instrument; Government Obligations

Junior Securities
Security that has a subordinate claim on assets to that of a "senior security". For instance, a preferred stock is junior to a debenture, but a debenture, being an unsecured bond, is junior to all corporate securities.

See: Debenture; Junior Issue; Preferred Stock; Senior Securities; Unsecured Debt

Junk Bond
Bonds that have little or no collateral or liquidation value and are typically very risky. For this risk, they offer a high rate of return. They are issued by corporations without sales and earnings track records, or by those with questionable credit. Moreover, in the 1980s, junk bonds were popular instruments for corporate mergers and acquisitions. The bonds usually have a credit rating of BB or lower. Because the term has an unfavorable connotation, issuers and holders prefer the bonds to be called "high yield bonds."

See: Acquisition; Collateral; High Yield Bond; Liquidation; Merger; Rate of Return; Risk; Risk/Reward Ratio

Justified Price
Fair market price an educated buyer will pay for an asset.

See: Fair Market Value