DESCRIPTION OF SECURITY TYPES             PA3.00             PAGE 1 OF 6

Security types are used by the programs to control logic flow and
calculations, and to select captions on reports.  Specification of a
security type is required for addition of a security to the catalog.
WARNING:  Once the information about a security is in the catalog, the
security type cannot be changed!

Any or all security types may exist in the catalog.  Explanation of the
available types follows.  They are described in the same order in which
they appear in the Securities Register and in the Transaction Register.

CASH EQUIV. - for cash accounts, savings accounts, certificates of de-
    posit (CDs) and most money market funds.

MARGIN ACCT. - for a broker margin account.

COMM. PAPER - for commercial paper, notes receivable and other similar
    types of securities.  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.)


DESCRIPTION OF SECURITY TYPES                                PAGE 2 OF 6

The main thing that distinguishes CASH EQUIV., MARGIN ACCT., and COMM.
PAPER from other security types is that you enter the BALANCE of the
account as of a specified date, rather than the amount of each individ-
ual transaction.

The Stock Charting System's portfolio manager is designed to maintain
an inventory of securities (by tax lot), rather than to serve as a tra-
ditional 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, 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.
Market value is always assumed to be equal to the account balance.

DESCRIPTION OF SECURITY TYPES                                PAGE 3 OF 6

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

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

MUNI. BONDS - for "tax-exempt" municipal bonds.  Interest on these may
    or may not be tax-exempt.  Consult your broker and/or tax advisor.

CORP. BONDS - for corporate bonds such as those issued by IBM, AT&T etc.
    Usually the interest on these is taxable to individual investors.
    Corporate bonds 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 6

PREF. STOCK - for individual preferred stocks.

COMMON STOCK - for individual common stocks.

MUTUAL FUND - for mutual funds of most types, regardless of what kinds
    of securities they invest in.  (Use CASH EQUIV. for most money mar-
    ket funds.)

For the above three security types, a "unit" is one share.  Dividend
income is computed by multiplying the rate per share by the number of
shares.

Although the Personal Portfolio Analyzer is not designed to handle real
estate or limited partnerships, some of these securities trade on the
exchanges like stocks.  Some examples are ServiceMaster L.P. (Limited
Partnership) and New Plan Realty Trust (a real estate investment trust,
or REIT).  These can be treated as common stocks.




DESCRIPTION OF SECURITY TYPES                                PAGE 5 OF 6

STOCK WARR. - for stock warrants.

CALL OPTIONS - for call options & 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.
    This security type is not intended for futures contracts.

For the above four security types, a "unit" can be anything reasonable
such as a option contract, an ounce of silver or a bushel of corn.  In
the case of gold or platinum you may wish to consider showing units of
1/10 oz. instead of one ounce, because the program only accepts current
quotes less than $1000 per unit.







DESCRIPTION OF SECURITY TYPES                                PAGE 6 OF 6

COMPOS.INDEX - for composite indices such as the S & P 500 or the Dow
    Jones 30 Industrials.  NOTE: Index FUNDS must be classified as
    MUTUAL FUND types.

    In the Personal Portfolio Analyzer, this type of security cannot
    be purchased or sold.  It is provided for compatibility with the
    companion Stock Charting System.

NOTE: Mortgage-backed securities such as GNMA's should be classified as
COMM. PAPER or CASH EQUIV.  Enter the market value as of the end of each
month.  These securities typically pay back both interest and principal
with each payment.  The Stock Charting System's portfolio manager cannot
amortize the principal; that is, it cannot calculate what portion of
each payment is interest and what portion is principal.
