Investor Definitions

BASIS POINT

One one-hundredth (.01) of a percentage point. For example, eight percent is equal to 800 basis points.

5 years ago

BANKRUPTCY FOR A PUBLIC COMPANY

A company may decide to declare bankruptcy when it suffers from crippling debt.  Federal bankruptcy laws govern how the assets…

5 years ago

BANKRUPTCY

Filing for protection under the federal bankruptcy laws can help companies make plans to repay their debts.  A bankrupt company…

5 years ago

BANKING REGULATORS

The SEC routinely receives questions and complaints from investors about the investment products they have purchased. But not all investments…

5 years ago

BACK-END LOAD

A sales charge, also known as a "deferred sales charge," investors pay when they redeem (sell) mutual fund shares. Funds…

5 years ago

ASSET CLASSES

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

5 years ago

ASSET ALLOCATION

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

5 years ago

ASK PRICE

In the over-the-counter market, the term "ask" refers to the lowest price at which a market maker will sell a…

5 years ago

ASK PRICE

The term "bid" refers to the highest price a buyer will pay to buy a specified number of shares of…

5 years ago

ARBITRATION AND MEDIATION

Arbitration, a form of alternative dispute resolution, is a technique for the resolution of disputes outside the court system.  In…

5 years ago