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| Fees paid to the mutual fund company when selling a mutual fund. |
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| Quarterly payouts 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 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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| 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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| 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 than its peers. |
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| When you sell a stock for more than 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 than 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 mutual fund or account that invests in short-term, liquid investments. These funds generally pay better than a savings account with a bank, but less than 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 an d profit from its investment gains. |
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| An incorporated business that does not trade shares of stock 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 or 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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| The practice of dividing the money a person invest between several different types of investments in order to lower risk |
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| The process of setting money aside to increase wealth over time for long-term financial goals such as retirement |
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| Account of arrangement in which a person puts his/her money for long-term growth: invested money should not be used for a suggested minimum of five years |
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| Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money |
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| A list of your incestments |
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| Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit |
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| Relationship of substantial reward compared to the amount of risk taken |
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| Piece of ownership in a company, mutual fund or other investment |
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| Securities that represent part ownership or equity in a corporation |
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| Money that is invested, either tax deferred or tax free, within a retirement plan |
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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. |
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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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| 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 WalMart, 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 i vestment 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 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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