Author: SEC

Investments that have similar characteristics. The three main asset classes are stocks, bonds, and cash.

Asset allocation involves dividing your investments among different categories, such as stocks, bonds, and cash.

In the over-the-counter market, the term “ask” refers to the lowest price at which a market maker will sell a specific number of shares.

The term “bid” refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time.  The term “ask”  refers to the lowest price at which a seller will sell the stock. The bid price will almost always be lower than the ask or “offer,” price.… Continue reading ASK PRICE

Arbitration, a form of alternative dispute resolution, is a technique for the resolution of disputes outside the court system.  In arbitration, the parties agree to have their dispute heard by one or more arbitrators and agree to be bound by their decision. Most account agreements between broker-dealers and their customers have arbitration clauses.  The arbitration… Continue reading ARBITRATION AND MEDIATION

An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Annuities typically offer tax-deferred growth… Continue reading ANNUITIES

An annual rate of return is the profit or loss on an investment over a one-year period. There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, multiplying it by 12 expresses an annual rate of return. This is often called the annual… Continue reading ANNUAL RETURN

A report filed to the SEC by public companies that includes the company’s history, audited financial statements, a discussion of products and services, a review of the organization and its operations, and a discussion of the company’s major markets.

The annual report to shareholders is a document used by most public companies to disclose corporate information to their shareholders. It is usually a state-of-the-company report, including an opening letter from the Chief Executive Officer, financial data, results of operations, market segment information, new product plans, subsidiary activities, and research and development activities on future… Continue reading ANNUAL REPORT