Category: Investor Definitions

A feature some funds offer that allows investors to automatically switch from one fund class to another, typically one with lower annual expenses, after a set period of time. The fund’s prospectus or profile will state whether the fund has a conversion feature.

A type of back-end load, the amount of which depends on the length of time the investor holds his or her shares. For example, a contingent deferred sales load might be 5% if an investor holds his or her shares for one year, 4% after two years, and so on until the load disappears completely.

The “consolidated tape” is a high-speed, electronic system that reports the latest price and volume data on sales of exchange-listed stocks. The data reflected on the consolidated tape are generated by various market centers, including all National Securities Exchanges and Alternative Trading Systems, and broker-dealers trading off exchanges.  Websites that provide updated market information and financial news programs… Continue reading CONSOLIDATED TAPE

Interest paid on principal and on accumulated interest.

The SEC’s Office of Investor Education and Advocacy (OIEA)receives many types of complaints from individual investors, including complaints against brokers, brokerage firms, investment advisers, transfer agents, mutual funds, and other market participants. Investors can submit a complaint form to OIEA to report problems with investments, an investment account, or a financial professional, including problems involving: Order handling,… Continue reading COMPLAINTS

The Committee on Uniform Securities Identification Procedures (CUSIP) number identifies most securities, including U.S. government and municipal bonds. CUSIP numbers are unique nine-character alphanumeric identifiers assigned to each series of securities.

You will likely pay a commission when you buy or sell a stock through a financial professional.  The commission compensates the financial professional and his or her firm when it is acting as agent for you in your securities transaction.

“Closing price” generally refers to the last price at which a stock trades during a regular trading session. For many U.S. markets, regular trading sessions run from 9:30 a.m. to 4:00 p.m. Eastern Time. A number of markets offer after-hours trading and some financial publications and market data vendors use the last trade in these after-hours markets as… Continue reading CLOSING PRICE

A closed-end fund, legally known as a closed-end investment company, is one of three basic types of investment companies  The two other types of investment companies are open-end funds (usually mutual funds) and unit investments trusts (UITs). Exchange-traded funds (ETFs) are generally also structured as open-end funds, but can be structured as UITs as well. A closed-end fund invests the money… Continue reading CLOSED-END FUNDS

A class of fund shares without any front-end load, deferred sales charge, or other asset-based fee for sales or distribution.  A broker would be expected to charge its customers commissions for effecting transactions in Clean Shares.