Level 103 Level 105
Level 104

Investment Returns

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total return
of an investment in a mutual fund includes any dividents, capital gains distributions, and interest income
Current Yield
Annual Intrest / Current Market Price
Cash Dividend
A pro rata (proportional to ownership) distribution of cash to stockholders.
Participating Preferred
Preferred stock that shares with common stockholders any dividends paid in excess of the percent stated on preferred stock.
Interest rates rise
The value of preferrers and debt instrument falls
Interest rates fall
The value of preferrers and debt instrument rise
Advantage - Reduce admin duty and cost of each transaction. Disadvantage is they do not get rid of inherent currency and economic risks of foreign shares.
Currency Exchange Risk
The risk caused by the varying exchange rates between the currencies of two countries
Real Estate Investment Trust
Generate cash without any write offs or tax benefits
A certificate granting the owner the right to purchase a share of stock at a specified price.
warrant stock increases
If common stock increases
Secondary Market
Financial market where securities have been previously issued are resold
Transfer Agent
issues and redeems certificates. Handles name changes, validates mutilated certificates. Distributes dividends, gains, and shareholder reports to mutual fund investors.
The registrar, working with the TRANSFER AGENT, keeps current files of the owners of a bond issue and the stockholders in a corporation, often a commercial bank.