Trending Business / Commerce Terms
Capital Appreciation:
An investment objective of Capital Appreciation indicates you seek to grow the principal value of your investments over time and are willing to invest in securities that have historically demonstrated a moderate to above average degree of risk of loss of principal value to pursue this objective. Some examples of typical investments might include common stocks, lower quality, medium-term fixed income products, equity mutual funds and index funds.
Credit Rating:
An assessment of a particular issuer's creditworthiness which results in a rating being assigned. Ratings range from AAA (very high) to D (in default). Several companies study issuers and make ratings decisions, including Moody's and Standard & Poor's.
Digital currency :
It is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency
Decentralized finance :
It means that offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a block chain.
Fixed-Income Securities:
Another term for bonds, which pay a fixed rate of interest until they mature. Bond mutual funds are called fixed-income funds, but the name is misleading because in a bond mutual fund your income and principal value both fluctuate.
Growth Stock:
A stock in a company characterized by above-average growth in earnings or sales. Growth stocks tend to have a high price relative to earnings and provide little, if any, dividend.
Income:
An investment objective of Income indicates you seek to generate income from investments and are interested in investments that have historically demonstrated a low degree of risk of loss of principal value. Some examples of typical investments might include high quality; short and medium-term fixed income products, short-term bond funds and covered call options.
Index:
A statistical model that serves as a reference or benchmark for judging how well an investment is performing. The benchmark most often used for stock market performance, for example, is the Standard & Poor's 500® Index, which measures the average performance of 500 widely held large-company stocks.
Investment-grade obligations are those rated at the time of purchase AAA, AA, A or BBB by S&P, Aaa, Aa, A or Baa by Moody's or which are similarly rated by another nationally recognized statistical rating organization or are unrated but deemed by the Adviser to be comparable in quality to instruments that are so rated.
Liquidity:
The measure of how quickly an investment can be turned into cash. A mutual fund generally is considered a very liquid investment, because shares can be redeemed at any time. In contrast, a house is a very liquid investment.
Maturity :
The state, fact, or period of being mature also connected with Insurance and other funds.
Mutual Funds:
An investment company that pools the money of many individual investors and uses it to buy a diversified portfolio of securities.
Net Asset Value (NAV):
The value of a single share in a mutual fund, which is determined by dividing the total assets of the fund, minus its liabilities, by the total number of shares outstanding.
Preservation of Capital:
An investment objective of Preservation of Capital indicates you seek to maintain the principal value of your investments and are interested in investments that have historically demonstrated a very low degree of risk of loss of principal value. Some examples of typical investments might include money market funds and high quality, short-term fixed income products.
A legal document providing important information about a mutual fund. Filed with the Securities and Exchange Commission and available to all investors, the prospectus includes information on the fund's objectives and policies, risks, costs, past performance, fund fees, and other pertinent information to prospective investors.
Redeem:
To cash in shares by selling them back to a mutual fund company. Mutual fund shares may be redeemed on any business day.
Reinvestment Privilege:
An option which allows shareholders to have their mutual fund dividends automatically used to buy additional fund shares.
Speculation:
An investment objective of Speculation indicates you seek a significant increase in the principal value of your investments and are willing to accept a corresponding greater degree of risk by investing in securities that have historically demonstrated a high degree of risk of loss of principal value to pursue this objective. Some examples of typical investments might include lower quality, long-term fixed income products, initial public offerings, volatile or low priced common stocks, the purchase or sale of put or call options, spreads, straddles and/or combinations on equities or indexes, and the use of short term or day trading strategies.
Systematic Withdrawal Plan (S W P):
A program which permits shareholders to have a specified amount automatically redeemed either monthly, quarterly, semi-annually or annually, and paid per the shareholder's instructions.
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