Glossary M - P

Management fee-the fee that a mutual fund manager charges investors for his services and work with the fund.

Margin-borrowed money used to purchase securities.

Market capitalization-total dollar value of outstanding shares

Maturity-the length of time until the principal must be paid

Merger-the combining of two or more companies

Mortgage-a loan secured by the collateral of some real estate property.

Municipal bond-a debt security issued by a municipality in order to finance capital expeditures.

Mutual fund- a security that gives small investors access to a pool of diversified securities.

NASD-self regulatory association of the securities industry

Net change-the difference between the closing price of a security on the trading day and the close of the previous day.

NYSE- New York Stock Exchange

No load-a mutual fund shares sold without commission or sales charge

Note-a debt security usually maturing in less than 10 years

Oustanding share-the number of shares owned by investors

Par-the face value of a bond

Pension plan-a retirement plan, usually tax exempt, wherein the employer makes contributions for the employee

Personal finance-financial planning for individuals

Political risk- risk that a government will change its policies

Principal-the amount borrowed or the amount still owed on a loan seperate from the interest

Profit-total earnings less expenses

Public company-a company whose stock is traded on the market

Purchasing power-the amount of goods and services that one unit of money can buy

Pyramid scheme-an illegal investment scheme where investors are promised substantial returns on their money. Early investors are paid from the money of latter investors.

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