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.

BACK TO TOP

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.

BACK TO TOP

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.

BACK TO TOP