| A | B |
|---|
| Maturity Date | The date when a bond will be repaid. |
| Face Value | The dollar amount that the bondholder will receive at the bond's return. |
| Debenture | A bond that is backed only by the reputation of the issuing corporation rather than by its specific assets. |
| Mortgage Bond | A bond that is backed by assets of a corporation. |
| Subordinated Debenture | An unsecured bond that give bondholders a claim to interest payments and assets of the corporation only after all bondholders have been paid. |
| Convertible Bond | A bond that an investor can trade for shares of the corporation's common stock. |
| Call feature | Allows a corporation to buy back bonds from bondholders before maturity date. |
| Bond Indenture | A legal document that details all of the conditions pertaining to a particular bond issue. |
| Sinking Fund | A fund to which a corporation makes deposits for the purpose of paying back a bond issue. |
| Serial Bond | Bonds issued at the same time that mature on different dates. |
| Registered Bond | A bond registered in the owner's name by the company that issues the bond. |
| Registered Coupon Bond | A bond that is registered in the owner's name for the face value only and not for interest. |
| Bearer Bond | A bond that is not registered in the investor's name. |
| Zero-Coupon Bond | A bond that provides no interest payments and is redeemed for its face value at maturity. |
| Municipal Bond | A security issued by the state or local government to pay for its ongoing activities. |
| General Obligation Bond | A bond that is backed by the full faith and credit of the government that issued it. |
| Revenue Bond | A bond that is repaid from the income generated by the project it is designed to finance. |
| Investment- Grade Bonds | Bonds that are issued by financially stable companies or municipalities. |
| Yield | The rate of return, usually stated as a percentage. |
| Closed-End Fund | A mutual fun with a fixed number of shares that are issued by an investment company when the fund is first organized. |
| Open-End Fund | A mutual fund with an unlimited number of shares that are issued and redeemed by an investment company at the investors' request. |
| Net Asset Value | The amount one share of a mutual fund is worth. |
| Load Fund | A mutual fund in which you pay a commision every time you purchase shares. |
| No-Load Fund | A mutual fund in which the individual investor pays no comission. |
| 12b-1 Fee | A fee that an investment company charges to help pay for marketing and advertising a mutual fund. |
| Prospectus | A report that provides potential investors with detailed information about a particular mutual fund. |
| Family of Funds | A variety of mutual funds managed by one investment company. |
| Income Dividends | The earnings a fund pays to shareholders. |
| Capital Gain Distributions | Payments made to shareholders that result from the sale of securities in the fund's portfolio. |
| Capital Gain | The profit you make from selling your shares in a mutual fund for a higher price than you paid for them. |
