Terms of the Trade

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					                              Terms of the Trade
                                     [Answer Sheet]
1)    Commission - H
      Sales fees charged in return for investment advice and/or the buying and selling of stock.

2)     Defined Benefit Pension - G
      A retirement plan that promises to pay a certain amount, usually based on the number of years
      employed and salary level.

3)    Deferred Comp/401K/403B/457 Plan - B
      A tax advantaged retirement plan that doesn’t promises to pay a certain amount, the employer
      manages the fund and sometimes matches the employee’s contributions. The risk is primarily
      delegated to the employee.

4)    Index Fund - C
      A fund with the goal of replicating the performance of a particular market index. Index funds are
      not actively managed. Though their fees are usually lower than actively-managed funds and their
      returns are generally greater.

5)    No-Load Mutual Fund - J
      A commission-free mutual fund.

6)    Portfolio - D
      All the assets held by a person or entity.

7)    Risk - K
      The possibility of suffering a financial loss on an investment.

8)    Reward - I
      A satisfying return or result. A profit.

9)    Roth IRA - A
      An individual retirement account in which an investor makes contributions using income that has
      already been taxed and the money is not taxed when withdrawn after retirement.
10)   Stock (Common) - F
      A unit of ownership of a public corporation.

11)   Bond - L
      An arrangement where a corporation or government borrows money and agrees to repay it with

12)   Active Management - E
      This is an approach to running a mutual fund that includes buying and selling individual stocks.

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