Growth investing - Investment strategy that focuses on stocks of companies and stock funds where earnings are growing rapidly and are expected to continue growing. 30-day SEC yield (date) - Represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's share price at the end of the 30-day period. Price-to-book - The price per share of a stock divided by its book value (net worth) per share. Default - Failure of a debtor to make timely payments of interest and principal as they come due or to meet some other provision of a bond indenture. This is an introduction to some of the more common investing terms … The Motley Fool Guide to Investing for Beginners 3 Now we’re at half a million. The different types of investment management. Small-cap - The market capitalization of the stocks of companies with market values less than $3 billion. Median Market Cap - The midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio, where half the stocks have higher market capitalization and half have lower. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. There are several kinds of preferred stock, among them adjustable-rate and convertible. In general, the longer the average maturity, the greater the fund's sensitivity to interest-rate changes, which means greater price fluctuation. Relative risk and potential return - The amount of potential return from an investment as related to the amount of risk you are willing to accept. Daily dividend factor (date) - Daily dividend distributed by a money market mutual fund. EPS serves as an indicator of a company's profitability. Market risk - The possibility that an investment will not achieve its target. In fact, it’s not a stretch to get near that magical $1 million milestone. The NAV does not include the sales charge. Morningstar ratings - System for rating open- and closed-end mutual funds and annuities by Morningstar Inc. of Chicago. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE. Brokerage Account:A brokerage account is created by a licensed brokerage firm, that allows an investor to add funds and then the investor can place investment orders. Proxy - A shareholder vote on matters that require shareholders' approval. Expense ratio (date) - Amount, expressed as a percentage of total investment that shareholders pay annually for mutual fund operating expenses and management fees. Any examples used in this material are generic, hypothetical and for illustration purposes only. A fund with an R2 of 100 means that 100 percent of the fund's movement can completely be explained by movements in the fund's external index benchmark. setTimeout(function(){ Still, we think you can top it. Capital gains long term - The difference between an asset's purchase price and selling price (when the difference is positive) that was earned in more than one year. This website is a general communication being provided for informational purposes only. 2. Public offering price (POP) - A mutual fund share's purchase price, including sales charges. Also called average weighted maturity. R2 - The percentage of a fund's movements that result from movements in the index ranging from 0 to 100. Tax-exempt income - Tax-exempt income is income that is exempt from income taxes. A purchaser of state municipal bonds is exempt from federal taxation on the income earned from the bonds. Trustee - 1. Transfer agent - An agent, usually a commercial bank, appointed to monitor records of stocks, bonds and shareholders. The importance of asset allocation and the different asset classes. A letter of intent is not a contract and cannot be enforced, it is just a document stating serious intent to carry out certain business activities. Share class net assets (date) - Fund assets included in a specific share class. Treasury bond - Negotiable long-term (10 years or longer) debt obligations issued by the U.S. government and backed by its full faith and credit. Securities and Exchange Commission (SEC) - The federal agency created by the Securities and Exchange Act of 1934 that administers the laws governing the securities industry, including the registration and distribution of mutual fund shares. Share classes - Classes represent ownership in the same fund but charge different fees. Lipper ratings - The Lipper Mutual Fund Industry Average is the performance level of all mutual funds, as reported by Lipper Analytical Services of New York. Systematic investment plan - A service option that allows investors to buy mutual fund shares on a regular schedule, usually through bank account deductions. Growth stock - Typically a well-known, successful company that is experiencing rapid growth in earnings and revenue, and usually pays little or no dividend. earnings and time. We believe the information provided here is reliable but should not be assumed to be accurate or complete. endstream endobj 1830 0 obj <>stream The fund grows primarily as individual share prices climb. With a short position an investor will sell shares of stock that they do not own but have borrowed. The yield is determined by dividing the amount of the annual dividends per share by the current net asset value or public offering price. It tracks the performance of 500 large U.S. company stocks. Yield - Annual percentage rate of return on capital. Typically about three weeks before the dividend is paid to shareholders of record. Par value - Par value is the amount originally paid for a bond and the amount that will be repaid at maturity. The views and strategies described may not be suitable for all investors. Portfolio allocation - Amount of assets in a portfolio specifically designated for a certain type of investment. The investor can profit by buying these securities then selling them once they appreciate to their real value. Rights of accumulation - The right to buy over a period of time. Board of Trustees - A governing board elected or appointed to direct the policies of an institution. Large-cap - The market capitalization of the stocks of companies with market values greater than $10 billion. Letter of intent - A letter of intent may also be issued by a mutual fund shareholder to indicate that he/she would like to invest certain amounts of money at certain specified times. Portfolio holdings - Investments included in a portfolio. The Commingled Pension Trust Funds of JPMorgan Chase Bank N.A. The two major ways funds may be offered are (1) by companies in the securities business (these funds are called mutual funds); and (2) by bank trust departments (these are called collective funds). A back-end load is assessed at redemption (see contingent deferred sales charge), while a front-end load is paid at the time of purchase. 12b-1 fee - A mutual fund fee, named for the SEC rule that permits it, used to pay for broker-dealer compensation and other distribution costs. Top 10 holdings - Ten largest holdings in a portfolio based on asset value. Diversification - The process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns. Bond fund - A mutual fund that invests exclusively in bonds. Site design by, « The 3 Problems with the Current FIRE Movement, 7 Side Hustle Ideas That Have Full-Time Income Potential ». Verification of existing investment will be required. The summary and full prospectuses contain this and other information about the mutual fund or ETF and should be read carefully before investing. setTimeout(function(){ By receiving this communication you agree with the intended purpose described above. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an investor's own situation. Fundamentally strong companies whose stocks are inexpensive but trending upward may also be selected for value funds. h��0 ���Ž�i,D�u Value stock - Typically an overlooked or underpriced company that is growing at slower rates. A market in which prices decline sharply against a background of widespread pessimism, growing unemployment or business recession. In exchange for signing a letter of intent, the shareholder would often qualify for reduced sales charges. Treasury note - Negotiable medium-term (one year to 10 years) debt obligations issued by the U.S. government and backed by its full faith and credit. YTD Return (w load) - Year-to-date return on an investment including appreciation and dividends or interest, minus any applicable expenses or charges. Annualized rate of return also can be called compound growth rate. Exchange privilege - The ability to transfer money from one mutual fund to another within the same fund family. 52 Week High - A security's trading high point over the last 52-week period.
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