Investment Glossary

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Asked Price
The cost to you of a mutual fund's share. The price is dependent on the current net asset value per share minus any sales service charge.

Asked Price
The cost to you of a mutual fund's share. The price is dependent on the current net asset value per share minus any sales service charge.

Automatic Reinvestment
An automatic service that reinvests the captial gains and dividends into additional shares.

Balanced Fund
A strategy used to help maintain a level balance of bonds, and stocks.

Capital Gain
Profit that is a result of a price of a fund or security increasing above the purchase price. The profit is realized only when the security is sold, and unrealized when it is not sold. If the stock or security has been held for more than one year, the gain is considered a long-term gain; otherwise it is shorter-term.

Certificate of Deposit
Also known as a CD, is an interest, short term debt instrument that is issued by banks.

Common Stock Fund
An investment company that holds mainly common stocks; emphasizing growth.