A sales charge applied when an investor withdraws money from an investment within a specified time period. The amount and duration of the charge is specific to each security.
Balanced/Tactical Asset Allocation
A style of investing focused on an asset allocation approach. This style is characterized by a mix of stocks, bonds and cash equivalents purchased in a proportion designed to try to obtain the highest return consistent with a low-risk strategy.
Bank Qualified Bonds
Bonds that banks and trust departments can hold in their portfolios. These bonds are usually rated investment grade or higher. The issuer is limited to no more than 10 million dollars per year of outstanding indebtedness.
A legal process in which a person who is unable to pay outstanding debts is released from payment of all debts owed. In many cases, the court distributes the debtor's property to the creditors as payment for the outstanding debt.
BAN's (Bond Anticipation Notes)
Short term debt instruments intended to be paid off from the proceeds of long term bonds, to be issued at a later date. For example, BAN's may be issued to provide interim or construction financing for a project whose final costs will be financed by an issue of long term bonds.
Price of a security expressed in yield.
A market in which prices are low or declining.
Beginning Market Value
Market value of your portfolio on the beginning date of time period being displayed.
A measure of a security's volatility in relation to the equity market as measured by the market index relative to each security's investment category. This statistic reflects only the market-related portion of a security's risk, and so is a narrower measure than standard deviation, which reflects total risk (market related and unique). In general, the volatility of the relative market index is considered to be 1.00, so beta of 1.50 would indicate a volatility level 50% greater than that of the market. Since this statistic is relative to the market, betas for securities with little or no correlation to the market are less significant. You may wish to consider R-Squared as a measure of more significance of this statistic.
Bid and Ask
Often referred to as a quotation or quote. The bid is the lowest price acceptable to a prospective seller at a particular time for a trading unit of a given security; ask is the highest price a prospective buyer is prepared to pay for the same security. See Also: Ask, and Quote.
This is a type of "order" used when a user wants to sell a specific bond and would like the highest price prospective buyers are willing to pay.
A large holding or transaction of stock. Generally 10,000 or more shares or any quantity worth over $200,000 is considered a block.
The term used for a company known nationally for the quality and wide acceptance of its products or services, and for its ability to profit and pay dividends.
BOE Board of Education
Most school districts have the ability to levy ad valorem property taxes in order to secure bonded indebtedness.
Bond Holding Statistics
Expressed as a percentage except for median market cap, which is in dollars. This appears only for bond funds.
The contract between the borrower (the issuer) and the trustee (which acts on behalf of the bondholders) which stipulates the obligations of the borrower to the bondholders. The issuer is released from the indenture when the bonds either mature or are defeased.
The quality of a bond, based on the issuer's financial condition, as determined by a recognized financial organization, such as Standard & Poor's or Moody's; it indicates the ability of the issuer to meet debt obligations. Ratings typically range from AAA (the highest quality) to D (in payment default).
An approach to investment research that begins with the selection of individual securities that meet an established set of investment criteria. Approach assumes a company's stock can do well even in an industry that is not. As a result, economic and sector analysis are of secondary importance.
The dollar investment required to make a shareholder of a mutual fund eligible for a lower sales charge. See also Letter of Intent and Rights of Accumulation.
A firm which serves as an intermediary between dealers. A broker's broker does not own or position bonds, but attempts to bring buyer and seller together to earn a commission for the effort. (Much the same as a real estate agent.) Also called an eighth broker, from the days when brokers charged 1/8th of a point commission. Generally, they now work for less than that, depending on the size of the block of bonds, but, usually it's seventy five cents per thousand dollars face value.
A market in which prices are high or rising.
An instruction to purchase a specified quantity of a specific security at the market price or at another stipulated price. See Also: Market Order, Limit Order, Stop Order, Stop/Limit Order.