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Mutual funds permitting a fundholder who did not originally sign a letter of intent to sign one with a prior date (up to 90 days) on it. This permits prior purchases, together with a present large purchase, to qualify for a reduced sales charge.

The payment of a sales, redemption or surrender charge upon the discontinuance of securities, annuities or life insurance.

Those departments of a broker-dealer organization that are not directly engaged in sales or trading activity. Back office functions are cashiering, accounting, various communications, and the record keeping of the clients' cash or margin accounts.

Mutual funds which attempt to maintain a balance between the bonds, preferred stocks and the more volatile common stocks. Generally considered to be a conservative, defensive approach to investment.

A type of commercial money market instrument. A bank guarantees a draft drawn upon it based on a letter of credit and agrees to pay the check at some specified future date.

By common agreement, .01% of yield on a fixed income security. For example, if a bond's yield to maturity changed from 9.05% to 10.35%, there was a change of 130 basis points. Also used with yield changes for securities sold at a discount from face value.

A market in which prices are falling. Contrast: Bull Market

One who assumes a position of leadership. Said of a security or industry that seems to lead a market movement or economic trend.

Person who will receive the financial benefits of an asset, subject to certain conditions. Asset may be an insurance policy, an annuity, a trust, or other property. IRA accounts are the only accounts through mutual funds which can name a beneficiary.

A measure of the risk of a particular stock compared to the market as a whole.

The highest price anyone will pay for a security at a given time on a market. Contrast: Ask Price

The New York Stock Exchange.

Short-term securities of the U.S. Treasury sold at a discount from their face value. Difference between purchase price and face value represents interest income if held to maturity. Other governments also use bills for short-term financing. Bill is synonymous with bills. See also: Treasury Bill

Stocks of a company having a national name for the quality of its products and services.

Used to describe the various state laws which have been enacted to protect the public from securities fraud.

An interest-bearing certificate issued by a government or business promising to pay the holder on a specified date. Usually issued in multiples of $1,000. The holder of a corporate bond is a creditor of the corporation. In contrast, a stockholder is an owner of the corporation.

The quality of a bond issue as determined by independent bond rating services, AAA being of the highest quality. Both Moody's Investors Service and Standard and Poor's Corporation have such services. See Investment Grade.

A point at which the sales charge is reduced because of quantity purchases of mutual fund shares.

The sale of 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 charges applicable. A violation of the Rules of Fair Practice. Sales within $1,000 of breakpoint may be considered a breakpoint sale.

A market in which prices are rising. Contrast: Bear Market