Category: Investor Definitions

The unscheduled partial or complete payment of the principal amount outstanding on a loan, such as a mortgage, before it is due.

A type of 529 plan that lets an account owner purchase units or credits at participating colleges or universities for future tuition for the account beneficiary.

The amount by which the price of a bond exceeds its principal (par) amount.

The combined holdings of stock, bond, commodity, real estate and other investments by an individual or institutional investor.

A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi schemes are named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return within a few months for what he claimed was an investment in international mail coupons. Ponzi used funds from new investors to… Continue reading PONZI SCHEMES

“PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted shares from a company at a specified price. The company agrees, in turn, to file a resale registration statement so that the investors can resell the shares to the public. To the extent that they increase… Continue reading PIPE OFFERINGS

Defined benefit plans also are known as pension plans. Employers sponsor defined benefit plans and promise the plan’s investments will provide you with a specified monthly benefit at retirement. The employer bears the investment risks.

The OTC Bulletin Board (OTCBB) (link is external) is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many over-the-counter securities that are not listed on a national securities exchange. Brokers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. Under the… Continue reading OTC BULLETIN BOARD (OTCBB)

Options are contracts giving the purchaser the right – but not the obligation — to buy or sell a security at a fixed price within a specific period of time. Stock options are traded on a number of exchanges.

The costs a fund incurs in running the fund, including management fees, distribution fees, and other expenses.