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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 eastate is not. |
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| Investors pool their money together to invest it in the stocks of 90 to 200 companies in each mutal 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 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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| Fees paid to the mutal 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 rations of a different funds can be compared to find the best value. |
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| The FDIC (Federal Deposit Insurace Corporation) is a government agency that insures deposits money,banks and savings and loan companies that are FDIC-insured pay a percentage of thier deposits to the FDIC to pay for the insurance. |
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| Fes 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 depsit for this type of account, making it perfect for ids and teens just starting out. |
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| Year to Date Return (YTD) |
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| On a mutual fund statement, a comparison of how the fund has done compared to its value on the first on the year |
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| For savings account, the percentage of interest earned annually. For a stock, the annual dividend divided by the share price. |
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