Additional charges and fees paid out annually rather than initially, unless money is withdrawn early, then a surrender charge or deferred sales charge takes affect
A mutual fund that invests in both stocks and bonds.
A declining market, may refer to entire market or individual security.
Shares of a large, mature company with a steady record of profits and dividends and a high probability of continued earnings.
A long term promissory note, prices would go up when interest rates go down.
A rising market
Protecting the initial investment from loss of principal, typically accomplished by investing in conservative or guaranteed vehicles.
Issues a limited number of shares and does not redeem those that are outstanding. Trades at a premium or discount to NAV as share prices determined by pressures of supply and demand.
Spreading of risk by putting assets in several categories of investments or with a broad range of stocks in one portfolio.
A share of a company's net profits distributed by the company to its stockholders.
A formula-investment plan requiring periodic fixed-dollar-amount investments. This practice tends to average the unit cost of an investment over time.
Developing foreign markets, involving greater volatility and higher risk than established markets.
May be stock, bond, or options (securities)
Investments that will provide capital appreciation over the long-term.
Money earned through employment and investments.
A fund whose portfolio is matched to an index, such as S & P, and whose performance therefore mirrors the market as a whole. (Usually have low fees and are tax efficient in bull markets.)
Mutual fund with shares sold at it's NAV plus a sales charge (typically 4-8%) of the net amount invested.
The difference between an asset's purchase price and selling price, on holdings of more than 12 months.
Mutual funds that typically charge a 1-3% sales charge rather than a full load of 4-8%.
An interest bearing account where cash is held, generally a safer haven.
A Mutual Fund is an investment that is ideal for every investor, large or small. Your money is pooled together with that of other investors to create a large single account. This approach gives you the security of investing in a broad range of stocks and bonds and provides access to a professional fund management team who will oversee your investment.
The per-share market value of a mutual fund's portfolio.
A fund whose shares are bought and sold directly at the fund's NAV. Unlike a load fund, no agent or sales fee is involved.
Low-priced stocks, usually considered under $1 per share, but sometimes includes stocks below $3.
A holding of one or more securities by a single owner (institution or individual).
Shares whose indicated dividends and liquidation values must be paid before common shareholders receive any dividends or liquidation payments.
An official document that all companies offering new securities for public sale must file with the local regulator (i.e. BMA, SEC).
Liquidating a shareholder's holdings.
The degree of uncertainty and chance of loss of principal regarding an investment.
Paper assets representing a claim on something of value, such as stocks, bonds, mortgages, etc.
Ownership shares in a corporation.
The process of realigning the weightings of your portfolio of assets. For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting it into cash or bonds.
Acquiring / purchasing shares
An active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.
This strategy allows portfolio managers to create extra value by taking advantage of certain situations in the marketplace. It is a moderately active strategy, since managers return to the portfolio's original strategic asset mix when desired short-term profits are achieved.
Funds that are managed to create a minimum tax situation, but be aware of embedded unrealized gains.
An annual return on an investment including appreciation and dividends or interest.
Characteristic of a security, commodity, or market to rise or fall sharply in price within a short period of time, driven by emotions of fear and greed.
Yield
The return of an investment expressed as a percentage of its market value.
