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What is Contingent Deferred Sales Charge – CDSC?
A fee (sales charge or load) that mutual fund investors pay when selling Class-B fund shares within a specified number of years of the date on which they were originally purchased.
Also known as a “”back-end load”” or “”sales charge””. Read more for examples and further explanation including related video clips and also comments
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What is iTraxx LevX Indexes?
A set of two tradable indexes that hold credit default swaps (CDSs) representing a diversified basket of 35 European companies that have liquid debt offerings in the secondary market. The iTraxx LevX Senior Index represents only senior loans, while the iTraxx LevX Subordinated Index represents second- and third-lien loans.
The index offers two pricing sets each day: a mid-day price and end-of-day price. Prices are maintained by a consortium of investment banks, including Morgan Stanley, Barclays Capital, and Lehman Brothers. Both indexes begin with an initial coupon rate, then trade up or down to reflect market activity. New LevX indexes are released periodically to reflect new debt offerings or new company participation in the leveraged loan markets. Read more for examples and further explanation including related video clips and also comments
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What is Yankee CD?
A certificate of deposit (CD) issued in the U.S. market, typically in New York, by a branch of a foreign bank. Read more for examples and further explanation including related video clips and also comments
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What is Collateralized Debt Obligation Cubed – CDO-Cubed?
A special purpose vehicle (SPV) with securitization payments in the form of tranches. Collateralized debt obligation cubeds (CDO-cubeds) are backed by a pool of collateralized debt obligation squared (CDO-squared) tranches. Read more for examples and further explanation including related video clips and also comments
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What is Community Investing?
Investments made directly into low-income or disadvantaged communities through channels such as community development banks, credit unions, loan fund and microfinance institutions. Community investing is closely tied to socially responsible investing and focuses on economically improving run-down communities by offering banking services and small loans to fund businesses, non-profit groups and affordable housing initiatives. Read more for examples and further explanation including related video clips and also comments
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What is Early Withdrawal?
The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before a prescribed time. Early withdrawal could be anything earlier than the account owner’s attainment of a prescribed minimum age requirement, or the maturity of a fixed-term investment, such as a certificate of deposit (CD). Read more for examples and further explanation including related video clips and also comments
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What is Calendar Effect?
A collection of assorted theories that assert that certain days, months or times of year are subject to above-average price changes in market indexes and can therefore represent good or bad times to invest Some theories that fall under the calendar effect include the Monday effect, the October effect, the Halloween effect and the January effect. Read more for examples and further explanation including related video clips and also comments
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What is Promissory Note?
A written, dated and signed two-party instrument containing an unconditional promise by the maker to pay a definite sum of money to a payee on demand or at a specified future date. Read more for examples and further explanation including related video clips and also comments
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What is Collateralized Debt Obligation – CDO?
An investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds. Read more for examples and further explanation including related video clips and also comments
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What is Community Development Financial Institution – CDFI?
A private sector financial institution that focuses on personal lending and business development efforts in local communities. CDFIs can receive federal funding through the U.S. Department of the Treasury by completing an application. They can also receive funding from private sector sources such as individuals, corporations and religious institutions. Read more for examples and further explanation including related video clips and also comments
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