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Definition
| Fees paid to the mutual fund company when selling a mutual fund. |
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| Quarterly payout of profits by a company to all shareholders. |
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| For a mutual fund, an annual percentage the fund takes as payment. Expense ratios of different funds can be compared to find the best value. |
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| The FDIC (Federal Deposit Insurance Corporation) is a government agency that insures depositors' money. Banks and savings and loan companies that are FDIC-insured pay a percentage of their deposits to the FDIC to pay for the insurance. |
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| Fees paid to the mutual fund company as an entry requirement into certain mutual funds. |
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| Rise in prices that effectively makes cash have less buying power. |
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| A safe, low-return investment available from banks. There is generally no minimum deposit for this type of account, making it perfect for kids and teens just starting out. |
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Term
| Year to Date Return (YTD) |
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Definition
| On a mutual fund statement, a comparison of how the fund has done compared to its value on the first of the year. |
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Definition
| For a savings account, the percentage of interest earned annually. For a stock, the annual dividend divided by the share price. |
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| To spread your money around in order to lower the risk of your investments. |
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| The availability of your money. Cash is very liquid; real estate is not. |
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| Investors pool their money together to invest it in the stocks of 90-200 companies in each mutual fund. |
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| The probability of getting your money back from an investment. |
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| The higher the risk, the greater the expected return on an investment. The lower the risk, the lower the return. |
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| A piece of ownership in a publicly traded company. |
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| A time with generally failing stock prices. |
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| Stocks issued by solid and reliable companies with long records of growth and stability. These stocks usually pay small but reliable dividends and maintain a steady stock price. |
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| Money loaned to the government, corporations, or municipalities that pays the investor interest. Different types of bonds can be more or less risky, and bonds can have high yields or low yields (interest rates). |
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| A time with generally rising stock prices. |
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| Stocks of companies that produce such staples as food, beverages, and pharmaceuticals, and insurance companies. These businesses may not grow enormously fast, but they should keep their value relatively constant. |
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Definition
| Stocks of companiesthat generally do not pay dividends or pay only very small dividends. These companies plow their profits back into growing the business. They can be new and entreprenerial companies, and can experience high growth or financial failure. |
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Definition
| The collection of investments you personally hold, including stocks, bonds, money market accounts, and savings accounts. |
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| Stocks of very large companies such as Walmart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion |
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Definition
| A collection of investments tailored to your investment risk tolerance and time horizon. Any plan only works as well as your ability to stick with it. |
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| Stocks of largely unknown companies with smaller market capitalization, that is, dollar value of total stock ownership. Small cap stocks generally have a market capitalization of between $300 million and $2 billion. |
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| Separate types of investments, such as stocks/stock mutual funds, bond/bond funds, money market accounts, and international stocks/international stock funds. |
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Definition
| When you sell a stock for more than you paid for it, the difference is called a capital gain. |
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Definition
| When what you sell a stock for is less than what you originally paid for the stock, the difference is called a capital loss. |
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Definition
| A mutual fund or account that invests in short-term, liquid investments. |
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