DESCRIPTION OF SECURITY TYPES                SM3.11                 PAGE 1 OF 4

The security types are used by the programs to control logic flow and calcula-
tions, and to select captions on reports.  Specification of a security type is
required for addition of a security to the catalog.  WARNING: Once entered, the
security type cannot be changed in this version of the program!

Any or all security types may exist in the catalog.  Explanation of the avail-
able types follows:

CASH EQUIV. - for cash account; savings account, certificate of deposit (CD) or
    other time deposit; or money market fund in which the share value is always
    $1.00.  This security type can also be used for cash value of life insur-
    ance, annuity, discount or premium on bonds, accrued interest, etc.

MARGIN ACCT. - for a broker margin account.  Normally, it will have a negative
    balance.

COMM. PAPER - for commercial paper, notes receivable and other similar types of
    securities. For proper operation any discount or premium should be treated
    as a separate security entry of type CASH EQUIV.  (Note that government
    securities should usually be of the type T-BILLS,ETC., described later).

DESCRIPTION OF SECURITY TYPES                                       PAGE 2 OF 4

The main thing that distinguishes CASH EQUIV., MARGIN ACCT., and COMM. PAPER is
that you enter the BALANCE of the account as of a specified date, rather than
the amount of each individual transaction.  The portfolio analysis features are
designed to maintain an inventory of securities (by tax lot), rather than to
serve as an accounting system.  It is suggested that you enter the balances of
cash or cash-equivalent accounts as of the end of each month, or other dates
for which you want to produce reports.  You can have as many entries as you
need; the report functions will automatically select the correct balances
according to the "as of" report date.

For all other security types, described on the next screen pages, you enter the
amount of the purchase transaction (what you paid for that security purchase on
that day, i.e. a tax lot).

For the types CASH EQUIV., MARGIN ACCT., and COMM. PAPER the expected income is
calculated as a percentage of the dollar account balance.  There are no shares
or other units.  Market value is assumed to be the same as account balance.

NOTE: Use the type T-BILLS,ETC. for T-bills, Treasury notes and government
bonds.

DESCRIPTION OF SECURITY TYPES                                       PAGE 3 OF 4

T-BILLS,ETC. - for government securities (Treasury notes, T-bills and govern-
    ment bonds).  Also, you can use this security type for money funds in which
    the market value differs significantly from the account balance.

    NOTE:  It will be easier to classify a money market fund as a CASH EQUIV.
    if the share value is always $1.00.  Example: the Franklin Money Fund.

MUNI. BONDS - for municipal bonds.  Interest on these may or may not be tax-
    empt.  Consult your broker and/or tax advisor.  Under the new "tax reform"
    not all municipal bonds have tax-free income!

CORP. BONDS - for corporate bonds such as those issued by IBM, AT&T, etc.
    Usually the interest on these is taxable to individual investors.  Many
    trusts make use of corporate bonds.  They are traded on exchanges and have
    ticker symbols - have your broker give you a bond guide.

For the above three security types, a "unit" is $100 of face value.  Interest
is computed by multiplying the number of units by the rate per unit.  Market
values are usually higher or lower than face values.  The difference is known
as premium or discount.

DESCRIPTION OF SECURITY TYPES                                       PAGE 4 OF 4

PREF. STOCK - for preferred stocks.
COMMON STOCK - for common stocks.
MUTUAL FUND - for mutual funds of most types, regardless of how they invest,
    except money market funds.  (Use CASH EQUIV. for most money market funds)

For the above three security types, a "unit" is one share.  Dividends are com-
puted by multiplying the annual rate per share by the number of shares.

STOCK WARR. - for stock warrants.
CALL OPTIONS - for call options and other contracts to buy in the future.
PUT OPTIONS - for put options and other contracts to sell in the future.
PREC. METALS - for precious metals, such as gold bars, rare coins, etc. Not in-
              tended for futures contracts.  For gold or platimum, show units
              of 1/10 oz. (in case the price ever gets to 1000!).

For the above four security types, income is not computed.  You can enter unit
prices to compute market values for all security types on this and the previous
screen page, except for COMPOS.INDEX which cannot be bought in a portfolio.

COMPOS.INDEX - for a composite index such as the S&P 500; not for an index fund
