What a company owns: cash in the bank, accounts receivable (money owed), investments, property, inventory, etc.
Price at which shares are sold.
- Book Value
Measured per share. How much a common stock holder can expect to receive for each share if the corporation were liquidated
- Common Market Value (CMV)
Also called market price. Price investors must pay to buy the stock.
Hold's mutual fund's shares to ensure safekeeping
Distribution of a fund's earnings to investors.
- Investment Company
A corporation or trust that pools investors' money and then invests that money in securities on their behalf.
what the company owes: accounts payable (current bills the company must pay), short term and long term debt and other obligations
- Minimum investment
The least amount of money required to begin investing in a mutual fund.
- NAV: Net Asset Value
Net Assets/ Shares Outstanding = NAV
- Net Worth (shareholders' equity)
the excess value of assets over liabilities. i.e. Assets - liabilities = net worth
- No Load Fund
A mutual fund whose shares are sold without a commission or sales charge.
- Offer/ Ask Price
The price at which an investor may purchase a share in a mutual fund
- Outstanding Shares
Number of Shares that are sold to the public
- Par Value
Arbitrary value the company gives its stock in its articles of incorporation. Par Value is usually printed on the stock's share certificate and has no impact on the market value of the stock
- Professional Investment Advisor
Manages the investment portfolio for investors.
A document containing information on the fundís objective, investment policies, sales charges and management expenses, and services offered. These must be distributed to an investor before or during solicitation for sale
- Proxy/ Proxies
A form of absentee ballot used by shareholders to cast votes in the event they are unable to attend annual stock/ general meetings
The difference between a security's bid and offer (ask) price
- Total capitalisation
Net worth plus a company's long term debt.
Often called the sponsor or distributor, the underwriter is appointed by the Board of Directors of a Fund and receives a fee for selling and marketing the funds' shares to the public. This is not considered an expense to the fund