A liability required to be paid by a specific date. The date the board of directors of a company or mutual fund announces the amount and date of its next dividend payment. A retirement plan that promises to pay a certain amount, usually based on the number of years of service and on the average salary in the period before retirement. Employers generally bear all investment risk. A retirement plan offering a benefit that depends on the total contributions made by the employer and the employee, and on the investment returns earned by those contributions.
Employees generally bear the investment risk.
A decrease in the value of an investment. No immediate tax liabilities or penalties are incurred, but there is an IRS reporting requirement. A brokerage that executes orders to buy and sell securities at commission rates lower than a full-service brokerage. The interest rate charged by the Federal Reserve Board to member banks for loans. An indicator of interest rate risk.