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Definition
Mutual Funds with an Upfront Sales Charge
Typically has a 12b-1 fee of 0.25% |
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Definition
Mutual Funds with a declining Deferred Sales Charge
Typically has a 12b-1 fee from 0.65% to 1.00% |
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Term
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Definition
Mutual Funds with a one year Deferred Sales Charge
Typically has a 12b-1 fee from 0.65% to 1.00% |
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Definition
Mutual Funds with no sales charge
Typically has a 12b-1 fee of 0.25% |
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Term
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Definition
| An expense of the mutual fund that covers the cost of marketing the fund |
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Definition
| Certificates of Deposit - Issued by banks and insured by the US government agency known as the FDIC |
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Definition
| Collateralized Mortgage Obligations - Bonds issued which are backed by a pool of mortgages. Safest when issued by government agencies. |
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Definition
| Collateralized Debt Obligation - Bonds issued which are backed by a pool of debts. |
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Definition
| Credit Default Swaps - Insurance purchased on bonds, loans or loan portfolios to protect against default. |
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Term
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Definition
| Certified Public Accountant - The standard to which accountants are measured |
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Definition
| Certified Financial Planner - The standard to which financial planners are measured |
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Definition
| Certified Financial Analyst - The standard to which investment analysts are measured |
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Definition
| Chartered Life Underwriter - The standard to which life insurance agents are measured |
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Term
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Definition
| Balancing Risk and Reward in an investment portfolio by apportioning the assets based upon an individuals, goals, risk preference and time horizon. |
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Definition
| The process of reducing risk by spreading assets across various non-related investment classes |
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Term
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Definition
| A stock or any other security representing an ownership interest in a given entity or company. |
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Term
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Definition
| An investment providing fixed income payments and the eventual return of principal at maturity. |
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Term
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Definition
| Committing money with a highly probable positive expectation of profit |
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Term
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Definition
| Committing money to maximize profit by taking a higher than average amount of risk |
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Definition
| A mutual fund which diversifies across all the securities of a given index |
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Definition
| A mutual fund which trades on the securities exchanges instead of being priced by the mutual fund. |
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Term
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Definition
| Securities that derive their value from an underlying security or asset typically based upon a specified period of time |
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Definition
| A loan made to an individual or entity deemed less likely to be able to repay a loan because of bad credit or other factors. |
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Term
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Definition
| A form of investing which assumes that prices going up continue going up and prices going down continue going down |
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Term
| Growth / Momentum Investing |
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Definition
| Investment Style based upon growth of sales and profits and price trends (technical analysis). Similar to momentum investing but encompassing more than just the movement of the stock price. |
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Term
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Definition
| Investment Style based upon buying securities at prices below true value or intrinsic value. |
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Term
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Definition
| Security evaluation based upon measuring the true value or intrinsic value based upon all available financial information. |
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Term
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Definition
| Evaluation of a security based upon price trends and volume statistics. |
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Definition
| The specified date on which the principal amount of the bond is paid |
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Term
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Definition
| The first date that the issuer is able to repurchase the bond prior to maturity |
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Definition
| The compounded interest rate received from the time the bond is purchased to maturity |
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Term
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Definition
| The worst yield possible when investing in a bond and holding to either the maturity or the call date |
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Term
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Definition
| The coupon rate divided by the price of the bond. Will be the same as the Yield to Maturity when bought at Par Value (Face Value). |
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Term
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Definition
| An exchange of 2 shares of stock for each existing share of stock at one half of the price. Stock splits have no real economic benefit to investors. |
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Term
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Definition
| The risk a given company or entity will default on bonds and loans and subsequent loss of principal |
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Term
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Definition
| The risk associated with losing ones principal |
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Term
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Definition
| The risk of prices increasing and purchasing power decreasing, reducing the real return of investments. |
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Term
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Definition
| The risk of interest rate increases, reducing the attractiveness of existing bonds paying lower interest rates. |
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Term
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Definition
| The risk associated with the value of one currency moving up or down versus another. A weak dollar reduces the attractiveness of US investments to overseas investors but increases the value of overseas investments. |
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Definition
| The risk of a change in existing laws or administrations that could have a negative or positive impact upon selected industries or types of investments. |
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Term
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Definition
| The risk associated with the Volatility (Ups and Downs) of the stock market in general |
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Term
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Definition
| Individual Retirement Account - Traditionally tax deferred with a possible tax deduction - Roth IRAs are not tax deductible but are tax deferred with tax free withdrawls at retirement |
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Term
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Definition
| Most common form of corporate retirement plan, allows for employer matches and salary deferral for employees |
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Term
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Definition
| Retirement plan for non-profit organizations |
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Term
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Definition
| The stated interest rate payment made on the bond |
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Term
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Definition
| The principal amount of the bond that is paid at maturity (end of term) |
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Term
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Definition
| Bonds are rated by rating agencies to determine how financially sound they are - the highest rating is AAA. Bonds ranging from BBB, A, AA to AAA are all considered investment grade. |
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Term
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Definition
| Use of non public information on a company to attempt to generate profits via trading in that company's shares. |
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Term
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Definition
| The ability to convert a given asset to cash in a short period of time with little or no loss in value |
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Term
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Definition
| A portion of the company's cash flow which is paid to the stock holders. |
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Term
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Definition
| The possibility of loss and/or variability of returns from an investment |
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Term
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Definition
| The difference between what you can buy a security (Ask) and sell a security (Bid). |
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Term
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Definition
| Magnification of investment volatility in the attempt to improve performance typically utilizing financial derivatives and/or borrowing on margin. |
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Term
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Definition
| When a speculator sells something they do not own in order to buy it back at a future date. |
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Term
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Definition
| An insurance contract where the company makes fixed dollar guaranteed payments for the life of the contract (subject to terms and conditions of the contract). |
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Term
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Definition
| An insurance contract where the company provides a guaranteed income for the life of the annuity along with a variable return based upon the performance of the investments in the annuity. |
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Term
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Definition
| An annuity with an interest rate linked to the performance of an equity index. Guarantees a minimum interest rate with a higher rate possible based upon the performance of the index. Calculations of the performance are subject to rate caps, participation rates and other methods which complicate the contract. |
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Term
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Definition
| Selling stock at a profit - typically referred to by the financial news to explain why the market goes down |
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Term
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Definition
| This means that a stock or an index has gone down a lot lately and a given analyst feels that it is due to come up some |
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Term
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Definition
| This means that the value of the dollar is declining versus other currencies |
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