Mutual Fund Types
This type of mutual fund invests in the equity of funds whose earning potential is not reflected in their stock price.
What is a value fund?
This underwriting style includes both all or none, and min-max commitments.
What is best efforts underwriting?
This is the number of days an investor must hold a security to claim long term capital gains on its sale.
What is a year and one day? (366)
These plans are employer sponsored and must not discriminate against employees.
What are qualified plans?
The rate charged by the federal reserve to banks for short term loans
What is the Discount rate?
This type of mutual fund invests in the equity of companies that tend to reinvest their profits rather than pay dividends.
What is a growth fund?
This is the period during which indications of interest may be collected.
What is the cooling off period?
This is the length of time you can carry forward capital losses that exceed the $3,000 yearly maximum.
What is indefinitely?
This account is not employer sponsored, but does offer tax deferred contributions. Contributions are limited to a maximum amount each year, but can be up to 100% of earned income, if below that maximum.
What is a traditional IRA?
The rate charged by commercial banks to their best customers.
What is the Prime rate?
Investing in covered calls, this mutual fund can show capital gains, but seeks to augment that with the premium from the calls.
What is an options income fund?
This information is conspicuously absent from a preliminary prospectus, though a range may be given.
What is the final price?
Short term capital gains are taxed as this.
What is ordinary income?
These plans are state run and used to fund college or other educational costs.
What are 529 plans?
This is the yield most affected by a change in interest rate. (Farthest from the nominal yield)
What is yield to call?
Investing in several different classes of equity, this mutual fund seeks to diversify the investors portfolio through management.
What is a Blend/Core fund?
This regulation allows some non-accredited investors, but no advertising, or advertising for accredited investors only.
What is regulation D?
Included in ordinary income are Income, Interest, and these payments from corporations.
What are dividends?
An individual plan that uses after tax contributions, and if all requirements are met, offers tax free withdrawals.
What is a ROTH IRA?
The rate charged by banks to other banks for overnight loans.
What is the Fed funds rate?
Based on the investors age, or an assumed date of retirement, this fund seeks to change its allocations over time to minimize market risk as investors move closer to retirement.
What is a target date or life cycle fund?
This regulation allows small and medium businesses to raise up to $75 Million in capital without registering.
What is regulation A?
The cost basis of a security for an investor who received the security as a gift?
What is the donor's cost basis?
A qualified plan can also be referred to as this, the literal definition of its main advantage.
What is a tax advantaged plan?
The rate charged by banks for margin loans.
What is the broker call loan rate?