Category: Investor Definitions

Your advisory affiliates are (1) all of your officers, partners, or directors (or any person performing similar functions); (2) all persons directly or indirectly controlling or controlled by you; and (3) all of your current employees (other than employees performing only clerical, administrative, support or similar functions). If you are a “separately identifiable department or… Continue reading Advisory Affiliate – SEC Filing Term

Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount the investor will receive when the bond “matures” or comes due. The maturity dates on zero coupon bonds are usually long-term—many… Continue reading ZERO COUPON BOND

A line graph that shows the relative yields on debt over a range of maturities from three months to 30 years. Investors, analysts and economists use yield curves to evaluate bond markets and interest rate expectations.

The annual percentage rate of return earned on a bond calculated by dividing the coupon interest rate by its purchase price.

A wrap account is an investment account where a “wrapped” fee or fees cover all of the management, brokerage and administrative expenses for the account. The fee or fees are generally based on the total market value of the investment account. Learn more

A wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you: Buy substantially identical securities, Acquire substantially identical securities in a fully taxable trade, or Acquire a contract or option to buy substantially identical securities. Internal Revenue Service rules prohibit you from deducting… Continue reading WASH SALES

A viatical settlement allows you to invest in another person’s life insurance policy.  With a viatical settlement, you purchase the policy (or part of it) at a price that is less than the death benefit of the policy.  When the seller dies, you collect the death benefit. Your return depends upon the seller’s life expectancy… Continue reading VIATICAL SETTLEMENTS

These have changeable interest rates. Some variable-rate CDs feature a “multi-step” or “bonus rate” structure in which interest rates increase or decrease over time according to a pre-set schedule. Other variable-rate CDs pay interest rates that track the performance of a specified market index, such as the S&P 500 Index.

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death. It also has a cash value that varies… Continue reading VARIABLE LIFE INSURANCE

A “surrender charge” is a type of sales charge you must pay if you sell or withdraw money from a variable annuity during the “surrender period” – a set period of time that typically lasts six to eight years after you purchase the annuity.  Surrender charges will reduce the value and the return of your… Continue reading VARIABLE ANNUITY SURRENDER CHARGES