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Chapter 14 - Mutual Funds and other Investment Options

AB
Mutual FundA professionally managed group of investments.
Family of FundsA variety of funds covering a whole range of investment objectives
Liquid, Diversified and Professionally ManagedMutual Funds
Growth FundsThe goal is to buy stocks that will increase in value over time.
Income FundsLooking for money now and is low to moderate risk
Money Market FundsModest current income, little risk
Global FundsInternational stocks and bonds
Dow JonesMeasures the top 30 blue chip companies ratings.
Prospectuslegal document that offers securities or mutual fund shares for sale
Loadsales fee paid to a broker
Front-end loadPays fees upfront
Back-end-loadPays fees when you sell investments.
DepreciationThe decrease in value.
FuturesContracts to buy & sell stocks/commodities for a specific price and date.
Put OptionThe right to sell stock at a fixed price until the expiration.
Balanced FundsMinimizes risk by investing in a mixture of stocks and bonds



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