Browse Terms Alphabetically

A corporation which, for tax purposes, has elected to be treated similar to a partnership. The corporation must meet the requirements of the subchapter S section of the Internal Revenue Code.

See: Cash or deferred arrangement

The charge added to the net asset value (NAV) of shares in a mutual fund.

The federal regulatory agency created by the 1934 Securities Exchange Act to enforce federal securities laws and regulations,.

A federally chartered, nonprofit membership corporation providing protection for customer accounts of brokertdealers who get into financial difficulties.

A retirement plan managed by the plan participant. Selections of individual investments are made by the participant, subject to some legal limitations set forth by the IRS.

Bonds secured by the same mortgage or pledge of assets but issued on different dates.

A finance cost related to certain conditions of a credit contract, such as the fee when overdraft checking is activated.

The date on which the seller or broker delivers the securities and the buyer must pay. Settlement must be within five full business days after the trade date.

The act of assuring that a signature is actually that of the person it purports to be.

A type of qualified plan which is similar to an employer-sponsored IRA, but which allows an employer to make contributions which do not exceed the lesser of 15% of the employee's compensation or $30,000. SEPs must be made available to all eligible employees. Certain SEPs may permit elective deferrals.

A fund that seeks to provide growth of capital or current income through investment in enterprises that make a significant contribution to society through their products and services and the way they do business.

The risk associated with changing worldsocial, economic and political situations. The unpredictable responses of the financial community to current events can have both a positive and a negative effect on investments.

Investment in reorganized, merged, or rejuvenated companies offering potential opportunity for growth.

A floor member of an exchange who is a broker-dealer and handles orders for one or more stocks. He or she is responsible for maintaining an orderly and continuous market in those stocks.

A type of mutual fund which concentrates its holdings in some specific area, such as a specific industry or geographical area.

Diversified investments concentrated in one industry, field or geographic area.

Investment concentrated in littleknown ventures involving high financial risk, with the hope of high capital gain in a relatively short time.

An individual who is married to a person with no earned income may establish a spousal IRA involving two separate accounts or subaccounts. The maximum contribution to both accounts is $2,250, with no more than $2,000 being allocated to either account.

The difference between the bid price and the asked price. The purchase of one security, option or contract against the sale of another with the expectation that the "spread," or price difference, will provide for a profit.

A stock index which reflects daily changes in the prices of a select group of stocks.

Ownership shares of a corporation. May be either common or preferred.

Payment of a dividend in shares of stock rather than cash. This allows the corporation to conserve cash and the stockholder to avoid paying income taxes on the stock dividend until such time as the stock is sold.

An individual who specializes in the buying and selling of specific stocks on an exchange. Sells for both his or her own account as well as executing orders for other floor traders and brokers.

The charge made for the early withdrawal of funds from an investment.