Tag: Investing

The term “Money market mutual fund” simple means a short-term investment that seeks to protect principal and generate income by investing in Treasury bills, CDs with maturities less than one year and other conservative investments.

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The term “Median Market Cap” simply means The midpoint of market capitalization of the stocks in a portfolio, where half the stocks have higher market capitalization and half have lower.

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The term “Long-term investment strategy” simple means a strategy that looks past the day-to-day fluctuations of the stock and bond markets and responds to fundamental changes in the financial markets or the economy.

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The term “Loads (back-end, front-end and no-load)” simple means Sales charges on mutual funds. A back-end load is assessed at redemption while a front-end load is paid at the time of purchase. No-load funds are free of sales charges.

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The term “Liquidity” simple means the The ability to have ready access to invested money. Mutual funds are liquid because their shares can be redeemed for current value on any business day.

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The Lipper Mutual Fund Industry Average is the performance level of all mutual funds, as reported by Lipper Analytical Services of New York.

The performance of all mutual funds is ranked quarterly and annually, by type of fund such as aggressive growth fund or income fund. Mutual fund managers try to beat the industry average as well as the other funds in their category.

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The term “Letter of intent” simple means 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. In exchange for signing a letter of intent, the shareholder would often qualify for reduced sales charges.

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.

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The term “Investment company” simple means a corporation, trust or partnership that invests pooled shareholder dollars in securities appropriate to the organization’s objective. Mutual funds, closed-end funds and unit investment trusts are the three types of investment companies.

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The term “Interest rate” simple means the The fixed amount of money that an issuer agrees to pay the bondholders. It is most often a percentage of the face value of the bond. Interest rates constitute one of the self-regulating mechanisms of the market, falling in response to economic weakness and rising on strength.

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The term “Individual Retirement Account (IRA)” simple means a tax-deferred account to which an eligible individual can make annual contributions up to $3,000.

$6,000 for a single-income married couple filing a joint income tax return.

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