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This section contains a comprehensive listing of definitions for financial
and investment terms in alphabetical order from Q-U.
To select any other word(s) click on one of the other alphabetical groupings
or go back to the key word search engine for a
more specific search.
ABCDEF GHIJK
LMNOP QRSTU
VWXYZ
Select one of the
letters to go directly to a section:
Q R S T
U
Real
Rate of Return
The return on an
investment after it has been adjusted for inflation.
Record
Date
The date which determines
the shareholders who are eligible to participate in a corporate income
distribution.
Redemption
Price
Also known as "bid
price," this is the price at which mutual funds buy back their
shares. It is usually the net asset value of the fund less any back-end
sales charges.
Registered
Representative
An employee of
a brokerage house that has been licensed by the Securities and Exchange
Commission. This requires passing a series of tests.
Risk
The potential to
lose money, including principal, or not to make money on an investment.
Risk
Tolerance
An investor's personal
ability or willingness to endure declines in the prices of investments.
Russell
3000 Equally Weighted Index
This index consists
of 3,000 large U.S. companies representing about 98% of the equity markets.
The smallest company in the index has a market value of roughly $25
million.
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S&P
500 Index
The Standard &
Poor’s Composite 500 Index (S&P 500) is an index of 500 broadly
diversified major corporations’ stock. It is the measure of stock
market performance most commonly used by professional investors.
Salomon
Broad Bond
This index is a
market-cap weighted bond index that includes Treasury and government-sponsored
bonds, mortgage-backed securities, and investment grade fixed-rate corporate
bonds with maturities of one year or longer.
Securities
Investments, including
stocks, bonds, and money market instruments.
Share
A unit of equity
ownership in a corporation, represented by a stock certificate, which
names the company and the shareowner. Also a unit of ownership in a
mutual fund.
Shareholder
Someone who owns
shares in a mutual fund.
Short-term
Capital Gain
A profit on the
sale of a security or mutual fund share held for one year or less.
Small
Capitalization (Cap) Stocks
The stock of companies
whose market value is usually less than $650 million. Small cap companies
grow faster than large cap companies and typically use any profits for
expansion rather than for paying dividends. They often have higher risk
but also greater potential for capital gains.
Standard
Deviation
The degree to which
a fund's return varies from the average of all similar funds.
Statement
of Additional Information
A supplement to
a mutual fund's prospectus, provided under separate cover. It contains
more detailed information about fund policies, operations, and investment
risks and lists all officers and directors of the fund and their compensation.
Stock
Also known as equity,
stock represents ownership position in a business entity, such as a
company or corporation. Each share of stock represents a proportionate
share of ownership.
Stock
Fund
A mutual fund that
invests mainly in stocks.
Stock
Split
Distribution of
new shares to each stock shareholder on a proportional basis to the
number of shares already held by that individual.
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Tax-free
Funds
A fixed-income
or money market mutual fund that invests in securities which are issued
by state, county, and local governments and their agencies. The proceeds
from these securities are used to finance a variety of public-works
projects, such as the building of roads, schools, and sewers. Under
current tax laws, the interest paid to investors in these securities
is generally exempt from federal income taxes. These funds are frequently
purchased by investors who wish to shelter their investment income from
taxes.
Ticker
Symbol
Letters that identify
a security for trading purposes. Also known as the stock symbol.
Total
Return
The combined return
of capital appreciation and income (interest and dividends) that an
investment earns. Total return shows the value of an investment over
a period of time. It is calculated by adding appreciation to reinvested
dividends and capital gains. Realistic time periods by which to gauge
total return performance are 1-, 5-, and 10-year periods.
Trade
Date
The actual date
on which your shares are purchased or sold.
Transfer
Agent
An organization
employed by a mutual fund to handle the transfer, issue, purchase, sales,
or conversion of securities, mailing notices and reports to stockholders,
paying all dividends, affecting stock subscriptions, and maintaining
the records relating to the accounts of the mutual fund’s shareholders.
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