Financial Glossary

1-9

1099-R 12B-1 Fee 403(b) 457(b) 529 College Savings Plan 60-day Rollover

A

A-B Trust Abatements Accounts Payable Accounts Receivable Accredited Investor Accrual Basis Accrual Basis Accounting Accrued Expenses Accrued Interest Accrued Revenue Accumulated Depreciation Accumulation Stage Accumulation Unit Active Management Actuary Ad Valorem Fees Ad Valorem Tax Adjusted Gross Income (AGI) ADS Affordable Care Act Agency Bonds Agency Issue Agency Problem Agent Aggressive Aggressive Growth Fund Algorithmic Trading All of None Order (AON) Alpha Alternative Investment Alternative Minimum Tax (AMT) American Depositary Receipt (ADR) American-Style Amortization Amortizing Bond Amortizing Loan Anchoring Bias Annual Rate of Return Annuitant Annuitization Annuity Annuity Commencement Date Annuity Factor Method Appreciation Arbitrage Arithmetic Mean Ask Ask Price Asset Asset Allocation Asset Class Asset Class Allocation Asset Location Asset Location Optimization Asset-Backed Securities Asset-Based Fees Asymmetric Information At the Money AUM Fee Automated Clearing House (ACH) Automated Trading Automatic Asset Rebalancing (AAR) Average Annual Total Returns

B

B/E (Business EIDL) Back-End Load Backdoor Roth Balance Sheet Balance Sheet Balloon Maturity Balloon Maturity Balloon Payment Basic Warnings Per Share (EPS) Basis Basis Point Bear Market Bearer Bonds Behavioral Bias Behavioral Finance Benchmark Beneficiary Beneficiary IRA Best Bid Best Offer Beta Bid Bid-Ask Spread Bid–offer Spread Block Trade Blue Chip Bond Bond Fund Bond Insurance Bond Rating Bond Yield Book Value Book Value per Share Boom Break-Even Analysis Breakpoint Brochure Supplement Brochure Broker Broker-Dealer Brokerage Brokerage Account Budget Bull Bull Market Business Cycle Business Risk Buy Stop Order Buyback Bypass Trust

C

Call Call Option Call Protection Call Risk Callable Bond Callable Bonds Capital Appreciation Capital Appreciation Fund Capital Appreciation Fund Capital Asset Pricing Model Capital Gain Capital Gain Capital Lease Capital Loss Capital Market Capital Market Line Capital Markets Capital Preservation Capital Structure Capitalization (Cap) CARES Act Cash Alternative / Cash Equivalent Cash balance plan Cash Efficiency Cash Equivalent Cash Flow Cash Management Cash-Basis Accounting Cash-Up Contribution CBOE CD Certificate of Deposit Charitable Remainder Trust (CRT) Chicago Stock Exchange Chicago Stock Exchange Child Tax Credit Churning CHX Circuit Breaker Class A Shares Class B Shares Class I Shares Class R Shares Clearing Closed-End Fund CMO COBRA Cognitive Dissonance Cognitive Errors Coincident Indicator Collateral Trust Bond Collateral Collateralized Bond Obligations Collateralized Bond Obligations Collateralized Debt Obligation Collateralized Loan Obligations Collateralized Mortgage Obligation (CMO) Combination Privilege Commercial Paper Commingling Commission Commodities Common Law Common Shares Common Stock Company Stock Fund Company-Specific Risk Complex Trust Compounding Conduit IRA Trust Confirmation Confirmation Bias Confirming Evidence Trap Conservative Consolidated 1099 Form Constant Dollar Plan Constant Ratio Plan Consumer Price Index Consumption Contingent Beneficiary Contingent Deferred Sales Charge (CDSC) Contract Issue Date Contraction Control Security Conventional Bond Conversion Period Conversion Price Conversion Ratio Conversion Value Convertible Bond Convexity Cooling-Off Period Core Inflation Corporate Account Corporate Bond Corporation Correlation Cost Basis Cost of Capital Cost of Debt Cost of Equity Cost of Living Adjustment (COLA) Cost-Benefit Analysis Coupon Coupon Rate Coupon Yield Coverdell Education Savings Account Covered Call Writer Covered Security CPI Credit Curve Credit Curve Credit Default Swap Credit Ratings Credit Risk Credit Score Credit Shelter Trust Credit Spreads Cryptocurrency Cumulative Preferred Stock Cumulative Return Current Assets Current Liabilities Current Market Value (CMV) Current Ratio Current Revenue Current Yield Custodial Account Custodian Custody Cyclical Industry Cyclical Stocks

D

Dark Pool Dated Date Day Order Dealer Death-Tax Trap Debenture Debit Spread Debt Debt Limit Debt Ratings Debt Service Debt-to-Equity Ratio Decumulation Default Default Risk Defensive Investment Strategy Defensive Stocks Deferred Annuity Deferred Compensation Plan Deferred Coupon Bond Deferred Coupon Bond Deficiency Letter Deficit Defined Benefit Plans Defined Contribution Plans Deflation Demand Demand Deposit Depreciation Depreciation Expense Depression Derivative Designated Market Maker (DMM) Dilution Direct Participation Program (DPP) Direct Rollover Directed Brokerage Disability Income Insurance Disbursement Discount Discount Bond Discount Rate Discounted Cash Flow (DCF) Discretion Discretionary Account Discretionary Trust Disgorge Disposable Income Distributable Net Income (DNI) Distribution Diversification Diversified Common Stock Fund Dividend Dividend Discount Model Dividend Exclusion Rule Dividend Growth Model Dividend Payout Ratio Dividend Reinvestment Plan (DRIP) Dividend Yield Dividends per Share Dodd-Frank Bill Dollar Cost Averaging Donor Donor-Advised Fund Double Taxation System Dow Jones Composite Average (DJCA) Dow Jones Industrial Average (Dow or DJIA) Durable Power of Attorney Duration

E

Earned Income Earned Income Tax Credit Earned Surplus Earnings Earnings Momentum Earnings Multiplier Earnings per Share (EPS) Earnings per Share (EPS) Economic Cycle EE Bonds Effective Date Effective Tax Rate Efficient Frontier Efficient Market Efficient Market Hypothesis Efficient Market Theory Efficient Range Electronic Funds Transfer (EFT) Eligible Designated Beneficiary (EDB) Eligible Rollover Distribution Emerging Market Emerging Market Fund Emotional Gap Employee Retirement Income Security Act of 1974 (ERISA) Employee Stock Options Enterprise Value Environmental, Social, and Corporate Governance (ESG) Equity Equity Financing Equity Fund Equity Risk Premium Equity Security Equity Wash Restriction Estate Eurobond Eurodollar Exchange Listed Security Exchange Privilege Exchange Traded Fund (ETF) Executor Exempt Security Exempt Transaction Exercise Price Expansion Expansionary Policy Expenditure Expense Ratio Expenses Experiential Bias

F

Face Value Fair-Market Value Familiarity Bias Family Trust Fannie Mae Farm Credit Administration (FCA) Farm Credit System (FCS) Fear of Regret Federal Deposit Insurance Corporation (FDIC) Federal Deposit Insurance Corporation (FDIC) Federal Funds Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corporation (FHLMC) Federal Intermediate Credit Bank (FICB) Federal Intermediate Credit Bank (FICB) Federal National Mortgage Associate (FNMA) Federal Reserve Board (FRB) Federal Reserve System Fee Fiduciary Filing Date Fill-or-Kill Order (FOK) Final Order Final Prospectus Financial Industry Regulatory Authority (FINRA) Financial Risk Financial Statements Firm Quote First in First Out (FIFO) Fiscal Policy Fiscal Year Fixed Annuity Fixed Asset Fixed Income Fixed Income Fund Fixed Return Investment Flat Yield Curve Flexible Spending Account (FSA) Flow-Through Foreign Currency Foreign Exchange Rate Form 1040 Form 1041 Form 1065 Form 1120 and 1120S Form 706 Form 709 Form D Forward Contract Forward Pricing Fractional Share Framing Bias Fraud Freddie Mac Front Running Front-End Load FSA Full Power of Attorney Full Retirement Age (FRA) Full Trading Authorization Fund Fund Family Fund of Funds Fundamental Analysis Future Value Futures

G

GAAP Gamma GDP General Fund General Obligation Bond General Partnership Generation Skipping Trust Generation-Skipping Glide Path Global Fund Good-til-Canceled Order (GTC) Goodwill Government National Mortgage Association (GNMA) Government Securities Governmental 457(b) Grantor Grantor Trust Gross Domestic Product (GDP) Gross Estate Gross Income Gross Margin Gross Revenues Growth and Income Fund Growth Fund Growth Industry Growth Stocks Growth Style Investing Guaranteed Interest Account Guaranteed Investment Contract Guaranteed Lifetime Withdrawal Benefit Guaranteed Security Guarantor Guardian

H

Hardship Distribution Hardship Waiver Head and Shoulders Health Savings Account (HSA) Hedge Hedge Clause Hedge Fund Herd Behavior High Deductible Health Plan (HDHP) High-Net-Worth Individual High-Yield Bond Hindsight Bias Holder Holding Company Holding Period Homestead Homestead Exemption HR-10 Plan Hypothecation

I

I-Bonds Illusion of Control Illusion of Knowledge Immediate Annuity Immediate-or-Cancel Order (IRC) In-Kind Transfer In-Service Distribution In-the-Money Incentive Stock Option Inception Date Income Fund Income in Respect of Decedent (IRD) Income Related Monthly Adjustment Amounts (IRMAA) Income Statement Indenture Index Index Fund Individual Annuity Contract Individual Retirement Account (IRA) Industrial Development Bond (IDB) Industrial Revenue Bond (IRB) Industry Fund Inflation Inflation Risk Inheritance Tax Inherited IRA Initial Public Offering (IPO) Inside Information Inside Market Insider Insider Trading Act Institutional Account Institutional Investor Intangible Asset Interest Interest Rate Interest Rate Risk Internal Rate of Return (IRR) Internal Revenue Code (IRC) Internal Revenue Service (IRS) International Fund Intestate Intrinsic Value Inverted Yield Curve Investment Adviser Investment Adviser Representative (IAR) Investment Banker Investment Banking Business Investment Company Investment Company Act Amendment of 1970 Investment Company Act of 1940 Investment Constraints Investment Objective Investment Policy Statement Investment Return Investment Risk Investment-Grade Security Investor IPO IRA Rollover IRA Transfer IRR Irrevocable Life Insurance Trust (ILIT) Irrevocable Trust Issuer

J

Joint Account Joint and Last Survivor Annuity Joint and Last Survivor Annuity Joint life Expectancy Table Joint Life with Last Survivor Joint Tenants with Right of Survivorship (JTWROS) Junk Bond

K

Keogh Keynesian Economics Kiddie Tax

L

Lagging Indicator Lapse Large Cap Fund Large Cap Stocks Large Capitalization (Cap) Large-Cap Last in First Out (LIFO) Leading Indicator Lease-Purchase Agreement Legislative Risk Letter of Intent (LOI) Level Load Leverage Liability LIBOR Lien Life Annuity Lifecycle Fund Limit Order Limited Liability Limited Liability Company (LLC) Limited Partnership (LP) Limited Power of Attorney Limited Trading Authorization Liquidation Priority Liquidity Liquidity Risk Listed Security Living Trust Load Long Long-Term Equity Anticipation Securities (LEAPS) Long-Term Gain Long-Term Loss Longevity Annuity Longevity Risk Loss Aversion Loss Carryover

M

Make a Market Management Company Management Fee Management Fee Margin Margin of Profit Ratio Marginal Tax Rate Marital Trust Market Capitalization (Cap) Market Maker Market Order Market Risk Markup Matched Orders Material Information Material Non-Public Information Maturity Maturity Date Mean Median Medicare Tax Mental Accounting Mid Cap Fund Mid Cap Stocks Mid Capitalization (Cap) Mid-Cap Modified Adjusted Gross Income (MAGI)

N

NASDAQ NASDAQ 100 Index

O

Operating Budget Operating Expenses

P

P/E Ratio Profit & Loss Statement

Q

Qualified / Nonqualified Qualified/Non Qualified

R

R-Squared R-Squared Rate of Return

S

S&P 500® Index Sales Charge Sector Fund

T

Tactical Asset Allocation Target Date Fund Target Date Fund Target Risk Fund Test Glossary Term

U

U.S. Treasury Securities U.S. Treasury Securities Underwriter

V

Value Fund

W

Withdrawal Wrap Fee

Y

Yield