Diversification - a risk management technique that mixes a wide variety of investments within a portfolio, thus minimizing the impact of any one security on overall portfolio performance. Dividend - a distribution of the earnings of a corporation. Dividends Per Share - the dollar amount of cash dividends paid on each common share during one year. Limit Orders - an order that instructs the floor broker to buy a specified security below a certain price or sell a specified security above a certain price. Mutual Fund - an investment company that continuously offers new equity shares in an actively managed portfolio of securities.
All shareholders participate in the gains or losses of the fund.
The shares are redeemable on any business day at the net asset value. Each mutual fund's portfolio is invested to match the objective stated in the prospectus. Portfolio - combined holding of more than one stock, option bond or other assets. It must be given to every investor who purchases a new issue of registered securities. Rating - an evaluation of a corporate or municipal bond's relative safety, according to the issuer's ability to repay the principal and make interest payments.