| A | B |
|---|
| Maturity date | The date when a bond will repaid. |
| Face value | The dollar amount that the bondholder will receive at the bond's maturity |
| 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 the corporation. |
| Subordinated debenture | An unsecured bond that gives bondholders a claim to interest payments and assets of the corporation only after all other 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 the 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 bonds | 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 a 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, earned by an investor who holds a bond for a certain period of time. |
| Close-end fund | Mutual fund 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 (NAV) | The amount one share of mutual fund is worth. |
| Load fund | A mutual fund in which you pay a commission every time you purchase shares. |
| No-load fund | A mutual fund in which the individual investor pays no commission. |
| 12b-1 fee | 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 funds | 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 | Profit you make from selling your shares in a mutual fund for a higher price than you paid for them. |
