Edward Jones-Investment Terms

Company sponsored retirement plan, allows for pre-tax salary deferrals, optional profit-sharing and matching contributions by the employer.

Mutual fund shares which charge an up-front commission deducted from the initial investment.

Yield on investment after taking into account the tax consequences incurred by either the capital gain or ordinary income.

Alternative tax, includes tax preference items that are added back into adjusted gross income.

Receipt for shares bought in the U.S. of a foreign-based corporation in an overseas market. The receipt is held by a U.S. bank, but shareholders are entitled to any dividends and capital gains.

Tax-deferred retirement savings vehicle issued as contract between an individual and insurance company. Provides a variety of income options, including a payment one cannot outlive. May be fixed, immediate or variable.

Mutual fund shares, no up front sales charge. Commonly called "back-end loads" because they have a declining sales charge, charged when shares are sold.

Mutual funds with no upfront sales charge. Commissions paid through higher annual expenses and through assessment of a contingent deferred sales charge.

Statement showing financial condition of a company. Includes assets, liabilities and net worth. Assets always equal, or balance, liabilities plus net worth.

Sharp, prolonged decline in price of stocks, usually brought on by a slowing economy. Because a bear fights by slapping downward, this term is associated with a falling market.

Either a person or an institution named by the investor to inherit their estate or part of their estate after death.

Measure of a stock's volatility relative to the stock market. Stocks with a beta of one have historically moved in the same direction as market, which always equals a beta of one. Stocks with greater beta values more aggressive movement. Lower beta less volatile than the general market.

Shares large companies with history of strong earnings growth and dividend payments. Strong management and excellent products and/or services, usually established industries.

Certificate representing creditorship; issuer pays interest on specific dates and redeems by paying the principal at maturity.

Insurance purchased by the issuer of a bond from an independent insurance company guaranteeing timely payment of interest and principal.