Tag: mutual

B-Shares definition explanation

What is B-Shares?
Shares in companies based in mainland China that trade on either the Shanghai or Shenzhen stock exchanges. B-Shares are eligible for foreign investment provided the investment account is in the proper currency (Shanghai B-shares trade in U.S. dollars, while Shenzhen B-shares trade in Hong Kong dollars). Read more for examples and further explanation including related video clips and also comments
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Portfolio Turnover definition explanation

What is Portfolio Turnover?
A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by taking either the total amount of new securities purchased or the amount of securities sold – whichever is less – over a particular period, divided by the total net asset value (NAV) of the fund. The measurement is usually reported for a 12-month time period. Read more for examples and further explanation including related video clips and also comments
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Transfer Agent definition explanation

What is Transfer Agent?
A trust company, bank or similar financial institution assigned by a corporation to maintain records of investors and account balances and transactions, to cancel and issue certificates, to process investor mailings and to deal with any associated problems (i.e. lost or stolen certificates). Read more for examples and further explanation including related video clips and also comments
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Institutional Shares definition explanation

What is Institutional Shares?
A class of mutual fund shares available for sale to investing institutions, either on a load or no-load basis. With sizable minimum investments, usually around $500,000 or more, funds will typically waive any front-end sales charges on these shares. Read more for examples and further explanation including related video clips and also comments
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Asset-Backed Commercial Paper Money Market Fund Liquidity Facility – AMLF definition explanation

What is Asset-Backed Commercial Paper Money Market Fund Liquidity Facility – AMLF?
A lending program created by the Federal Reserve Board on September 19, 2008, that will provide new funding to U.S. financial institutions until October 30, 2009. The Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF) provides funding that allows financial institutions to purchase asset-backed commercial paper (ABCP) from money market mutual funds (MMMF) to prevent default on investors’ redemptions. Read more for examples and further explanation including related video clips and also comments
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Total Return Index definition explanation

What is Total Return Index?
A type of equity index that tracks both the capital gains of a group of stocks over time, and assumes that any cash distributions, such as dividends, are reinvested back into the index. Looking at an index’s total return displays a more accurate representation of the index’s performance. By assuming dividends are reinvested, you effectively have accounted for stocks in an index that do not issue dividends and instead, reinvest their earnings within the underlying company. Read more for examples and further explanation including related video clips and also comments
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Specific-Shares Method definition explanation

What is Specific-Shares Method?
A personal financial accounting method that, when used properly, can help reduce capital gains realized for an investor who purchased multiple sets of a stock or mutual fund. In turn, the investor’s total tax paid in a given tax year is also reduced. In order to use the specific-shares method, the investor needs to keep careful records – particularly the cost basis – of each stock or mutual fund purchase. Then he/she must provide detailed information on which particular shares are to be sold to the broker managing the investor’s account. Read more for examples and further explanation including related video clips and also comments
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Target-Date Fund definition explanation

What is Target-Date Fund?
A mutual fund in the hybrid category that automatically resets the asset mix (stocks, bonds, cash equivalents) in its portfolio according to a selected time frame that is appropriate for a particular investor. A target-date fund is similar to a life-cycle fund except that a target-date fund is structured to address some date in the future, such as retirement. Read more for examples and further explanation including related video clips and also comments
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Non-Publicly Offered Mutual Fund definition explanation

What is Non-Publicly Offered Mutual Fund?
Mutual funds that are not offered for sale to the general public. Non-publicly offered mutual funds are usually registered via private placement, not as securities, and investors who buy them must meet suitability requirements for income and net worth.

These funds should not be confused with closed-end funds, which have a limited number of shares but are usually offered to the public at large. Read more for examples and further explanation including related video clips and also comments
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