Ch. 19 Investing In Mutual Funds, Real Estate, and Other Choices

Load

If you buy a mutual fund through a broker, you will likely have to pay a sales fee, called a load.

Net Asset Value

(NAV) The net asset value (NAV) tells you the market price for a share of a mutual fund.

Real Estate Investment Trust

(REIT) A real estate investment trust is a corporation that pools the money of many individuals to invest in a diversified class. of properties. like warehouse, shopping malls, apartment buildings and hotels.

Commercial Property

Commercial property is land and buildings that produce income through leasing or renting.

Gems

Gems are natural, precious stones, such as diamonds, rubies, sapphires, and emeralds.

Balanced Fund

A balanced fund is a mutual fund that seeks both growth and income, but attempts to minimize risk by investing in a mixture of stocks and bonds.

Certificate of Participation

A certificate of participation is a pool of mortgages that have been purchased by a government agency or government sponsored enterprise.

Global Fund

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

Growth and Income Fund

A growth and income fund is a mutual fund whose goal is to earn returns from both dividends and capital gains.

Growth Fund

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

Money Market Fund

A money market fund is a mutual fund that invests in safe, liquid securities, such as Treasury bills and bonds that mature in less than a year.

Real Estate Syndicate

A real estate syndicate is a group of investors who pools their money to purchase high-priced real estate as a short term investment.

Income Fund

An income fund is a mutual fund whose investment goal is to produce current income on a steady basis in the form of interest or dividends.

Index Fund

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

Precious Metals

Precious metals are tangible metals that have a known and universal value around the world.

Prospectus

The prospectus is a legal document issued by an investment company that provides details about the securities it offers for sale.

Commodities

a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.