Company Profile
Glossary
 
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Market risk
The potential loss that is possible as a result of short-term volatility of the stock market. Owning mutual funds may shield an investor from some market risk that a stockholder may be vulnerable to if their portfolio is not well diversified..

Maturity date
Date on which the principal amount of a debt instrument or bond becomes due and payable in full.

Maturity value
The amount the issuer agrees to pay out when the bond reaches its maturity date.

Modified Duration
Modified duration indicates the percentage change in the price of a bond for a given change in yield. The percentage change applies to the price of the bond including accrued interest..

Money market fund
A mutual fund that invests in short-term government securities, certificates of deposit and other highly liquid securities such as T-bills and short-term commercial paper. Such funds generally pay money market rates of interest. An investment in a money market fund is not insured or guaranteed by the government nor by any other entity or institution, so there is no assurance that the share price will be maintained.

Municipal bond fund
A mutual fund consisting of bonds issued by a state, city, or local government entity. The interest these securities pay is generally passed through to shareholders free of tax.

Mutual fund
A mutual fund is an investment that pools shareholders' money and invests it toward a specified goal. Each fund's investments are chosen and monitored by qualified professionals who use this money to create a portfolio. That portfolio could consist of stocks, bonds, money market instruments or a combination of those. Mutual funds offer investors the advantages of diversification, professional management,affordability, liquidity and convenience.

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