Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
|
The point at which the sales charge of a mutual fund is reduced because of quantity purchases
|
breakpoint
|
|
|
The sale of an investment company shares in dollar amounts just below the point at which the sales charge is reduced on quantity transactions so as to share in the higher sales charge.
|
breakpoint sale
|
|
|
The profit or loss derived from the sale of capital assets such as securities
|
capital gains and losses
|
|
|
The type of management investment company whose shares are not redeemable, but are bought or sold on securities exchanges over the counter
|
closed end investment company
|
|
|
The theory behind Subchapter M of the IRS code in which distributions to shareholders are not taxed to the investment company. The distributions are deemed to only "pass through" the investment company.
|
conduit (pipeline) theory
|
|
|
The amount of after tax dollars contributed by an investor towards the purchasee of a capital asset.
|
cost basis
|
|
|
An account registererd in the name of a custodian by an investor towards the purchasee of a capital asset.
|
cutodial account
|
|
|
An organization that holds in custody and safekeeping the securities and other assets of an investment company.
|
cutodian bank
|
|
|
The portion of total sales charge of a mutual fund that the selling dealer gets.
|
dealer's concession
|
|
|
The systematic investment of the same amount of money in the same stock over a period of years regardless of the price of the shares. This causes the average cost of the shares to be less than the average price per share.
|
dollar cost averaging
|
|
|
The inidicator of a managment company's efficiency and is determined by dividing operating expenses by the year's average net assets.
|
expense ratio
|
|
|
The abbreviation that stands for the accounting method used to determine the cost basis and holding time for redeemed mutual fund shares. The assumption is made that first shares purchased are the first shares redeemed.
|
FIFO
|
|
|
A process used for mutual funds when determining the net asset value of shares purchased and redeemed. The value is computed at the close of business at the NYSE. This value then applies to all purchases and redemptions made on that day.
|
forward pricing rule
|
|
|
A contractual plan in which 50% of the first years payments are deducted as sales charge.
|
front end loan plan
|
|
|
The situation that occurs when the directors of a mutual fund are also directors of the investment advisory company.
|
interlocking directorate
|
|
|
A method of share ownership in which 2 or more individuals own an equal undivided interest in the securities. Upon the death of one of the owners, the deceased interest passes to the survivors.
|
JTWROS
|
|
|
A share value equal to the total market value of the fund's securities and other assets, less its total liabilities, divided by the number of mutual funds outstanding.
|
NET ASSET VALUE
|
|
|
The amount that is distributed from a mutual fund as income dividend.
|
Net Investment Income
|
|
|
The type of management investment company that only issues redeemable shares. It is also known as a mutual fund.
|
Open End Investment Company
|
|
|
The type of insurance that if requested and paid for will cause the unpaid plan paytments to be paid in lump sum to a contractual plan's custodian upon the death of the investor.
|
Plan Completion Insurance
|
|
|
The price at which a mutual fund shares are sold to the public. In a loaded fund, it equals the NAV plus the sales charge.
|
POP - Public Offering Price
|
|
|
A security that can only be bought or sold to the issuer, typically a mutual fund.
|
Redeemable Security
|
|
|
A fee which may be deducted from the NAV per share in the redemption of the mutual fund share.
|
Redemption Fee
|
|
|
AN investment company that qualifies under Subchapter M of the IRS code, by distributing at least 90% of its net investment income and all of its capital gains.
|
Regulated Investment Company
|
|
|
The privelage that allows the new fund purchase to benefit from the lower sales charge applicable to a dollar level exceeded by the sum of the value of the account plus the new investment.
|
Right of Accumulation
|
|
|
The right of a contractional plan investor to receive a partial refund during the first 18 months of a contraactional plan.
|
Right of Partial Withdrawl
|
|
|
The right that allows a contractual plan invester to receive a full refund of sales charge within 45 days of the custodian's mailing of the plan certificate to the investor.
|
Right of Withdrawl
|
|
|
The phrase that describes the requirement that an owner's signature be authenticated by a national bank or a member broker-dealer which is a member firm of a national exchange
|
Signature Guarantee
|
|
|
The type of contractional plan which allows a sales charge of no more than 20% of any one payment, and no more than an average of 16% over the first 48 months.
|
Spread-Loan Plan
|
|
|
The form of share ownership where each owner has an undivided interest in the property. All interests need not be equal, and there are no rights of survivorship.
|
Tenants in Common
|
|
|
The agent of the mutual fund whose duties include issuing new shares, canceliing redeemed shares, and distributing capital gains distributions.
|
transfer agent
|
|
|
Someone who purchases from an issuer for resale to the public a new issue of securities. This organization also acts as the chief distributor of a mutual fund's shares.
|
Underwriter
|
|
|
The law adopted in most states which permits a direct gift t a minor without a trust or guardianship. The donor simply appoints a custodian to manage the gift until the minor reaches the age of majority.
|
UGMA
|
|
|
An investment company organized under a trust indenture, which issues redeemable securities representing individual interests in a unit of specified securities. Contractual plans utilize this form of investment company.
|
Unit Investment Company
|
|
|
A plan for accumulating mutual fund shares, under which there is no set goal or duration of the plan.
|
Voluntary Accumulation Plan
|
|
|
The plan or service offered by many mutual funds under which sharedholders receive payments from thier investments at regular intervals.
|
Withdrawl Plan
|
|
|
The rule that says that you cannot deduct from your taxable income a loss on a sale if you obtain substantially the same security 30 days before or after the sale.
|
Wash Sale Rule
|
