Browse Terms Alphabetically

A mutual fund managed with the objective of providing current income to the investor, with little or no emphasis on growth of principal.

Investment concentrated on corporations with records of consistently high dividend payments, or on high quality bonds.

Personal retirement program for employed persons. Under present law (1982) an employed person may deposit up to $2,000 of earned income annually. The deposit is (1) a deduction from income and (2) tax sheltered until withdrawn at age 59-1/2 or later. Withdrawal must begin no later than the calendar year in which a person becomes 70-1/2. Deposits must be made under a qualified plan. See also: IRA Rollover

Increasing prices caused when more money and credit are available than there are goods available.

A tax placed upon heirs for the right to receive property upon the death of another.

Legal and industry term for material information that (1) would influence the purchase or sale of a company's security and (2) has not been publicized in a widely used medium. For example, a company suffered a dramatic loss and this fact has not been announced publicly.

Public legislation that regulates the issuance of investment company securities. The law is administered by the SEC. The act sets standards for the organization, operation, and pricing of investment company securities, their public sale and reporting requirements, and, in many cases, for the allocation of portfolio investments.

Designation given by a national rating service if it includes a bond in one of its top four categories from AAA (top) to BBB (bottom) of the investment grade category. Standard & Poor's and Fitch use these symbols. Moody's uses Aaa to Baa for the same designation. Bonds rated below investment grade are increasingly speculative. See also: Junk Bond

Directors, officers and principal stockholders. Limited as to use of inside information in securities transactions.

A term including mutual funds, closed end companies, and other types of companies principally engaged in the business of investing the funds of its shareholders. Such companies are almost always registered with the Securities and Exchange Commission under the regulations of the Investment Company Act of 1940.

Provision of the tax law that permits a person who terminates employment and who receives a lump-sum distribution of pension benefits to reinvest in an individual retirement account (IRA) within a period of 60 days. Funds thus rolled over continue to be tax sheltered until withdrawn.