GlossaryGuide

An indexed annuity is a type of annuity contract between you and an insurance company. It generally promises to provide returns linked to the performance of a market index. There are two phases to an annuity contract – the accumulation (savings) phase and the annuity (payout) phase. During the accumulation phase, you make either a lump sum payment… Continue reading INDEXED ANNUITIES

An “index fund” describes a type of mutual fund or unit investment trust (UIT) whose investment objective typically is to achieve approximately the same return as a particular market index, such as the S&P 500 Composite Stock Price Index, the Russell 2000 Index or the Wilshire 5000 Total Market Index. An index fund will attempt to achieve its investment objective… Continue reading INDEX FUND

Impersonators may falsely claim to be affiliated with the SEC (or another federal government agency) in an attempt to steal your personal information or your money. Federal government agencies, including the SEC, do not endorse or sponsor any particular securities, issuers, products, services, professional credentials, firms, or individuals. Fraudsters may use the names of real… Continue reading IMPERSONATORS

An Immediate-Or-Cancel (IOC) order is an order to buy or sell a stock that must be executed immediately. Any portion of an IOC order that cannot be filled immediately will be cancelled.  Learn More.

This annuity has no accumulation phase. Instead, you start receiving annuity payments right after you purchase the annuity.

Investors often invest in funds through a variety of individual and family accounts and, as a result, sometimes receive multiple copies of the same documents from those funds.  To avoid duplication, the SEC allows funds to deliver a single copy of the same document to investors who share the same address. The SEC’s so-called “householding… Continue reading HOUSEHOLDING RULES

You can find the holiday schedules and trading hours for the national securities exchanges on each of their websites. You can find links to each exchange’s website here national securities exchange.

High-Yield Investment Programs (HYIP) are unregistered investments typically run by unlicensed individuals – and they are often frauds. The hallmark of an HYIP scam is the promise of incredible returns at little or no risk to the investor. A HYIP website might promise annual (or even monthly, weekly, or daily!) returns of 30 or 40… Continue reading HIGH-YIELD INVESTMENT PROGRAMS

Bonds that are believed to have a higher risk of default and receive low ratings by credit rating agencies, namely bonds rated Ba or below (by Moody’s) or BB or below (by S&P and Fitch). These bonds typically are issued at a higher yield (for example, a higher interest rate) than more creditworthy bonds, reflecting… Continue reading HIGH-YIELD BOND (OR JUNK BOND)

Like mutual funds, hedge funds pool investors’ money and invest the money in an effort to make a positive return.  Hedge funds typically have more flexible investment strategies than mutual funds.  Many hedge funds seek to profit in all kinds of markets by using leverage (in other words, borrowing to increase investment exposure as well… Continue reading HEDGE FUNDS