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15 Cards in this Set
- Front
- Back
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what is a mutual fund?
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An invest-
ment company that pools the money of many inves- tors—its shareholders— to invest in a variety of securities. |
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what is a closed-end fund?
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A mutual
fund whose shares are issued by an investment company only when the fund is organized. |
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what is a exchange-traded fund ?
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(ETF) A fund that invests
in the stocks or other securities contained in a specific stock or securities index. |
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what is a open-end fund ?
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A mutual
fund whose shares are issued and redeemed by the investment com- pany at the request of investors. |
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what is a load fund ?
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A mutual fund
in which investors pay a commission (as high as 8½ percent) every time they purchase shares |
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what is net asset value (NAV) ?
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The
current market value of the securities contained in the mutual fund’s port- folio minus the mutual fund’s liabilities divided by the number of shares outstanding. |
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what is a no-load fund?
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A mutual
fund in which the individ- ual investor pays no sales charge. |
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what are contingent deferred sales
load? |
A 1 to 5 percent
charge that shareholders pay when they withdraw their investment from a mutual fund. |
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what is a 1 2b-1 fee?
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A fee that an
investment company lev- ies to defray the costs of advertising and marketing a mutual fund and com- missions paid to a broker who sold you shares in the mutual fund. |
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what is a expense ratio?
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All the dif-
ferent management fees, 1 2b-1 fees, if any, and additional fund operating costs for a specific mutual fund. |
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what is a family of funds?
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A group
of mutual funds man- aged by one investment company. |
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what is a income dividend?
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The earnings a fund pays to
shareholders from its dividend and interest income. |
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what are capital gain distributions?
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distributions
The payments made to a fund’s shareholders that result from the sale of securities in the fund’s portfolio. |
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what is a turnover ratio?
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The percentage of a fund’s hold-
ings that have changed or “been replaced” during a 1 2-month period. |
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what is a reinvestment plan?
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A service provided by an
investment company in which income dividends and capital gain distribu- tions are automatically reinvested to purchase additional shares of the fund. |
