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| 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-0return 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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| Year to Date Return (YTD) |
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Definition
| On a mutual fund statement, a comparison of how the fund has done compare to its value on the first of the year. |
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| 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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| Separate types of investments, such as stocks/stock mutual funds, bonds/bond funds, money market accounts, and international stocks/international stock funds. Each asset class has typical risks and returns, and a certain investment within that class may perform better or worse that its peers. |
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| When you sell a stock for more that you paid for it, the difference is called a capital gain. Capital gains are income that must be reported on taxes. |
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| When what you sell a stock for is less that what you originally paid for the stock, the difference is called a capital loss. |
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| A share in a company's assets and profits. The ownership of a publicly traded company is split up into the shares of stock being traded and held. |
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| Money paid by a corporation to each shareholder. Typically given four times a year, these distributions of company profits can be used to reinvest in more shares of the company. |
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| A mutaul fund or account that invests in short-term, liquid investments. These funds generally pay better that a savings account with a bank but less than a savings account with a bank, but less that a typical stock mutual fund. These funds are considered very low risk. |
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| A mutual fund is a pool of stocks, bonds, and other securities managed by an investment company. Individuals can buy shares of the fund and profit from its investment gains. |
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| An incorporated business that does not trade shares trade shares of stocks on an open market. It is owned privately typically by a small number of people. |
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| An incorporated business owned jointly by all stockholders. Stockholders vote on who will oversee the company as a Board of Directors. Usually, the company profits are paid out in the form of dividends |
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| The annual amount of money an investment makes, given as a percentage. For example, a $100 investment that is worth $112 the next year had a 12% return. |
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| The chance that an investment may lose value. Less risky investments have a lower rate of return. |
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| Monetary increase that an investment makes. If an investment loses value, it is called a negative return. |
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| A time with generally falling 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 else 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 of 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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| Owning a collection of investments such as stocks from different industries and small and large companies, bonds, and money market funds for cash, in order to spread risk and have a safer investment overall. |
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| Stocks of companies that 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 entrepreneurial companies, and can experience high growth or financial failure. |
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| 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 Wal-Mart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion. |
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| 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, including sometimes selling "winners" to keep your overall spread of investments to where you want it to be. |
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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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