Finance Chapter 14: Investing in Mutual Funds, Real Estate, and Other Choices.

Participation Certificate

An investment in a pool or mortgages that have been purchased by a government agency.

Money Market Fund

Investing in safe, liquid securities, such as treasury bills and bonds that mature in three weeks to six months.

Real Estate Investment Trust

(REIT) A corporation that pools money of many individuals to invest in real estate.

Duplex

A building with two separate living quarters.

Depreciation

A decline in the value of property due to normal wear and tear.

Prospectus

A legal document that offers securities or mutual fund shares for sale.

Mortgage

A loan to purchase real estate.

Global Fund

A mutual fund that purchases international stocks and bonds as well as U.S securities.

Index Fund

A mutual fund that tries to match the performance of a particular index by investing in the companies included in that index.

Income Fund

A mutual fund whose investment goal is to buy bonds that produce current income in the form of interest.

Growth Fund

A mutual fund whose investment goal is to buy stocks that will increase in value over time.

Growth and Income Fund

A mutual fund whose investment goal is to earn returns from both dividens and capital funds.

Front-End Fund

A sales charge paid when you buy an investment.

Back-End Fund

A sales charge paid when you sell an investment.

Balanced Fund

Goal is to earn returns from current income and capital gains.

Real Estate

Land and any buildings on it.

Condominium

Or condo, is an individually owned unit in an apartment-style complex with shared ownership of common areas.

No-Load Fund

You can buy mutual funds directly from the investment companies.