Enhance Your Learning with Economics - Mutual Funds Flash Cards for quick learning
A type of investment vehicle made up of a pool of funds collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.
A type of mutual fund that does not have a fixed number of shares and can issue and redeem shares at any time based on investor demand.
A type of mutual fund that has a fixed number of shares and trades on an exchange like a stock.
A type of mutual fund that primarily invests in stocks or other equity securities.
A type of mutual fund that primarily invests in bonds or other fixed-income securities.
A type of mutual fund that invests in short-term, low-risk securities such as Treasury bills, certificates of deposit, and commercial paper.
A type of mutual fund that aims to replicate the performance of a specific market index, such as the S&P 500.
A mutual fund management strategy that involves actively buying and selling securities in an attempt to outperform the market.
A mutual fund management strategy that aims to replicate the performance of a specific market index, without actively buying and selling securities.
The annual fee charged by a mutual fund to cover operating expenses, expressed as a percentage of the fund's average net assets.
A sales charge or commission paid by an investor when purchasing shares of a mutual fund.
A sales charge or commission paid by an investor when redeeming shares of a mutual fund.
An annual fee charged by a mutual fund to cover distribution and marketing expenses.
The per-share value of a mutual fund, calculated by dividing the total value of the fund's assets minus liabilities by the number of shares outstanding.
A government agency responsible for regulating the securities industry, including mutual funds.
A federal law that regulates the organization and operation of investment companies, including mutual funds.
The risk that a mutual fund may not be able to sell a security quickly enough to meet investor redemption requests.
The risk that the value of a mutual fund's investments will fluctuate due to changes in market conditions.
The risk that a bond issuer may default on its payments of interest and principal.
The risk that the value of a bond or bond fund will decline as interest rates rise.
The risk that the purchasing power of a mutual fund's returns will be eroded by inflation.
A type of mutual fund that invests in securities whose income is exempt from federal income tax, such as municipal bonds.
A type of mutual fund that invests in securities whose income is subject to federal income tax.
The distribution of profits from the sale of securities by a mutual fund, which may be subject to capital gains tax for investors.
A risk management strategy that involves spreading investments across different assets to reduce exposure to any single investment.
A distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional shares.
A mutual fund that charges a sales commission or load fee when shares are bought or sold.
A mutual fund that does not charge a sales commission or load fee when shares are bought or sold.
The principle that higher potential returns are associated with higher levels of risk.
The risk that affects the overall market or a large segment of it, such as changes in interest rates or economic conditions.
The risk that is specific to an individual security or a small group of securities, such as company-specific events or industry trends.
The income generated by an investment, typically expressed as a percentage of its market value.
The process of dividing investments among different asset classes, such as stocks, bonds, and cash, to achieve a desired risk-return profile.