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Definition of loads
loads are sales fees (or commissions) that are charged when you buy a mutual fund.
The percent of a mutual fund's assets used to defray marketing and distribution expenses. The
mutual funds that do not charge an upfront or back-end commission, but instead take out up to
For investment companies, the management fee and "other expenses,"
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
This is a fund that buys common stock, preferred stock and bonds. The same as a
The beta of a fund is determined as follows:
The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means
A mortgage loan on newly developed property that the builder subsidizes during the
To purchase an asset; taking a long position.
A passive investment strategy with no active buying and selling of stocks from the
Another term for a repo.
To cover, offset or close out a short position. Related: evening up, liquidation.
A conditional trading order that indicates a security may be purchased only at the designated
To buy at the end of the trading session at a price within the closing range.
A transaction in which an investor borrows to buy additional shares, using the shares
Buy on opening
To buy at the beginning of a trading session at a price within the opening range.
This is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement.
A financial analyst employed by a non-brokerage firm, typically one of the larger money
Mortgages in which monthly payments consist of principal and interest, with portions of these
Buying the index
Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
An investment company that sells shares like any other corporation and usually does not
One of two parties to a conditional sale agreement, the other being the conditional seller.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Cost of funds
Interest rate associated with borrowing money.
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Custodial fees Fees
charged by an institution that holds securities in safekeeping for an investor.
Customary payout ratios
A range of payout ratios that is typical based on an analysis of comparable firms.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
Dividend payout ratio
Percentage of earnings paid out as dividends.
dividend payout ratio
Computed by dividing cash dividends for the year
dividend payout ratio
Percentage of earnings paid out as dividends.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
EFT (electronic funds transfer)
funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT.
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Investment funds established for the support of institutions such as colleges, private
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
Feasible target payout ratios
Payout ratios that are consistent with the availability of excess funds to make
Non-interest bearing deposits held in reserve for depository institutions at their district Federal
Federal funds market
The market where banks can borrow or lend reserves, allowing banks temporarily
Federal funds rate
This is the interest rate that banks with excess reserves at a Federal Reserve district bank
Federal Funds Rate
The interest rate at which banks lend deposits at the Federal Reserve to one another overnight.
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
The purchase of items exceeding the quantity levels indicated
Forward Fed funds
Fed funds traded for future delivery.
Front End Fees
fees paid when for example a financial instrument such as a loan is arranged.
See: financial lease.
Set of funds with different investment objectives offered by one management company. In many
Security analysis that seeks to detect misvalued securities by an analysis of the firm's
Analysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects.
The product of a statistical model to predict the fundamental risk of a security using not
In the model for calculating fundamental beta, ratios in risk indexes other than
Debt maturing after more than one year.
Debt with more than 1 year remaining to maturity.
The price of obtaining capital, either borrowed or equity, with intent to carry on business operations.
The ratio of a pension plan's assets to its liabilities.
Related: interest rate risk
Funds From Operations (FFO)
Used by real estate and other investment trusts to define the cash flow from
A mutual fund that can invest anywhere in the world, including the U.S.
The total sales recorded prior to sales discounts and returns.
mutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities.
A fund that may employ a variety of techniques to enhance returns, such as both buying and
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
A mutual fund providing for liberal current income from investments.
mutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares.
Investment fund designed to match the returns on a stockmarket index.
mutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management.
internally generated funds
Cash reinvested in the firm; depreciation plus earnings not paid out as dividends.
A mutual fund that can invest only outside the United States.
A mutual fund that can invest in securities issued anywhere outside of Canada.
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
Labour-Sponsored Venture Funds
Venture capital corporations established by labour unions. They function as other venture capital corporations but are subject to government regulation.
The purchase of one business entity by another, largely using borrowed
Leveraged buyout (LBO)
A transaction used for taking a public corporation private financed through the use
leveraged buyout (LBO)
Acquisition of the firm by a private group using substantial borrowed funds.
Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed
Life Income Fund
Commonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income payout as opposed to Registered Retirement Savings Plan (RRSP) holders choice of payout through Registered Retirement Income funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80.
A mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
a decision that compares the cost of
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
management buyout (MBO)
Acquisition of the firm by its own management in a leveraged buyout.
A bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
money market fund
A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.
mutual funds are pools of money that are managed by an investment company. They offer
when you buy a mutual fund, you are pooling your money with that of other investors. An investment professional called a portfolio advisor takes that money and invests it for all the investors in a variety of different securities as determined by the investment objectives of the mutual fund. This gives you the benefit of diversification that is, being invested in many different investments at once.
Mutual fund theorem
A result associated with the CAPM, asserting that investors will choose to invest their
A system, such as the arrangement between the CME and SIMEX, which allows trading
Mutually exclusive investment decisions
Investment decisions in which the acceptance of a project
mutually exclusive projects
a set of proposed capital projects from which one is chosen, causing all the others to be rejected
mutually exclusive projects
Two or more projects that cannot be pursued simultaneously.
mutually inclusive projects
a set of proposed capital projects that are all related and that must all be chosen if the primary project is chosen
Net advantage of refunding
The net present value of the savings from a refunding.
Total revenue, less the cost of sales returns, allowances, and discounts.
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