Before-tax contributions have the effect of reducing the total amount of income taxes paid. The price at which a mutual fund's shares are redeemed, or bought back, by the fund. The bid or redemption price is usually the current net asset value per share. Bonds and Bond Funds Bonds, often called fixed income investments, represent loans made to a company or a government body. Over time, regular interest payments are made to the bondholder by the borrower, and at the end of the loan term, the principal balance is repaid.
Bond funds invest in many bonds, typically having similar investment characteristics.
A firm that buys and sells mutual fund shares and other securities from and to investors. Capital Gain Distribution Profits distributed to shareholders resulting from the sale of securities held in a fund's portfolio for more than one year. The growth of an investment in excess of your original principal amount is called your capital gain. Different tax rates apply to gains depending on the time period over which they are earned. The market value of all of a company's outstanding stock is called its market capitalization.