Browse Terms Alphabetically

The organization responsible for the administration of a mutual fund.

The length of an investment. Also used to describe the date on which a loan, bond, or other debt instrument comes due.

Popular name for the union of two corporations. Merger generally implies a friendly union and states nothing about the name of the resulting company. Acquisition also is used of the union of two corporations. Acquisitions may be friendly or unfriendly and generally result in the loss of corporate identity for the acquired company.

A market in which short-term debt obligations are traded. Also used to refer to the actual cash or shortterm debt obligations that are much like cash.

Popular name for open-end investment share that invest in short-term money market securities in an endeavor to provide investors with (1) relatively riskfree investments that (2) give a daily payment of competitive short-term interest rates.

A defined contribution pension plan.

Popular name for Moody's Investors Service, a registered investment advisor. Moody's investment ratings for bonds, preferred stock, and, to a limited extent, common stock are considered norms for investment decisions by fiduciaries.

The debt obligations of states, cities, towns, public authorities and school districts. General obligation bonds are backed by the full taxing authority of the issuer. Revenue bonds rely on a particular source of revenue for their payment. The interest paid on most of these bonds is usually exempt from federal income taxes but not state income taxes.

A fund which pools the money of many investors with the benefit of investing more productively than the individual. The shares are redeemable by the issuer and are continuously offered without limit as to number issued. Also known as an open-end investment company.

A commercial bank or trust company that holds in safekeeping the monies and securities owned by a mutual fund. The custodian generally, but not always, acts as the transfer agent and disbursing agent of the fund. To act as custodian, the bank must qualify under the provisions set forth in the Investment Company Act of 1940.