Tag: funds

Fair Funds for Investors definition explanation

What is Fair Funds for Investors?
Provision introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act. Fair Funds for Investors was put into place to benefit those investors who have lost money because of the illegal or unethical activities of individuals or companies that violate securities regulations. Essentially, this provision enabled the Securities and Exchange Commission (SEC) to add civil money penalties to disgorgement funds for the relief of the victims of stock swindles. Read more for examples and further explanation including related video clips and also comments
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Blue Chip Swap definition explanation

What is Blue Chip Swap?
When a domestic investor purchases a foreign asset and then transfers that asset to a domestic bank branch located offshore. Then, the funds from the foreign asset are transfered into a bank account in the domestic country. The domestic investor usually has a partner transferring assets to the foreign branch on his or her behalf. Read more for examples and further explanation including related video clips and also comments
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Sales Charge definition explanation

What is Sales Charge?
A commission paid by an investor on his or her investment in a mutual fund. The sales charge is paid to a financial intermediary (broker, financial planner, investment adviser, etc.) for selling the fund and is intended to provide compensation for the financial salesperson’s efforts in assisting clients in selecting the mutual funds best suited to their needs. Read more for examples and further explanation including related video clips and also comments
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Exit Fee definition explanation

What is Exit Fee?
A fee or charge assessed to an investor for withdrawing money prior to a previously stipulated date. This is almost always expressed and charged as a percentage of assets rather than a flat fee.

May also be known as a “”redemption fee””, “”back-end load”” or “”contingent deferred sales charge””. Read more for examples and further explanation including related video clips and also comments
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Sequential Pay CMO definition explanation

What is Sequential Pay CMO?
A type of collateralized mortgage obligation (CMO) in which there are several tranches. Each tranche’s holder receives interest payments as long as the tranche’s principal amount has not been completely paid off. The senior tranche receives all initial principal payments until it is completely paid off, after which the next most senior tranche receives all the principle payments, and so on. Read more for examples and further explanation including related video clips and also comments
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Lehman Brothers Mortgage-Backed Securities Index definition explanation

What is Lehman Brothers Mortgage-Backed Securities Index?
An index made up of mortgage-backed securities that is used for benchmarking purposes. The Lehman Brothers MBS Index consists of fixed-rate securities, such as mortgage pools created by the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corp (FHLMC) and Federal National Mortgage Association (FNMA). This index serves as a performance benchmark for many mortgage-backed securities funds. Read more for examples and further explanation including related video clips and also comments
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Core Plus definition explanation

What is Core Plus?
A fixed-income investment management style that permits managers to add instruments with greater risk and greater potential return – high-yield, global and emerging market debt, for example – to core portfolios of investment-grade bonds. Read more for examples and further explanation including related video clips and also comments
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