Investor Education

Fees collected by a mutual fund for the promotion, sale or other activity connected with the distribution of its shares.

The organization which is employed by a mutual fund to give professional advice on its investments and management of its assets.

A measure of the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has outperformed better than its beta would predict. In contrast, a negative alpha indicates the fund's under performance.

A formal statement issued yearly by a corporation to its shareholders. It shows assets, liabilities, equity revenues, expenses, and so forth. It is a reflection of the corporation's condition at the close of the business year (balance sheet) and earnings performance (income statement).

A contract between an insurance company and an individual; it generally guarantees lifetime income to the individual on whose life the contract is based in return for either a lump sum or a periodic payment to the insurance company.

(1) The price at which a mutual fund's shares can be purchased. The ask or offering price means the net asset value per share plus sales charge.

(2) The offer side of a quote.

Apportioning of the investment portfolio among categories of assets, such as money market instruments, stocks, bonds and possibly among tangible assets like precious metals, real estate and collectibles.

Everything of value that a company owns: cash, investments, money due, materials, inventories–which are called current assets: buildings and machinery–fixed assets; and patents and good will–intangible assets.

The form imprinted on a registered securities certificate which, when completed and signed by the registered owner, authorizes the transfer of the security into the name of a new owner (designated on the form as the "assignee"). The assignment also usually provides for the granting by the registered owner of power of attorney to another person (usually the new owner or someone acting on his or her behalf) to accomplish the transfer. Assignments are often executed by the registered owner "in blank," with the name of the assignee and the person granted power of attorney filled in subsequently.

The option available to mutual fund shareholders whereby fund income dividends and capital gains distributions are automatically put back into the fund to buy new shares and thereby build up holdings.