BellaOnline Forums Money Investing Alphabet Investing Game

L
Law of 29 - a marketing concept that believes a customer will not purchase a product until he/she has seen it advertised 29 times.

Next: M

M
Management Tenure - length of time that a manager has been at the helm of a mutual fund; preferably of five to 10 years, is a key indicator of their abilities

next: 'N'

N
Net Asset Value - the price per share of a mutual fund

Next: O

O
Offsetting Transaction - an activity that exactly cancels risks and benefits of another instrument in the portfolio;used when it is not possible to simply close the original transaction as desired

next: 'P'

P
Passive Income - income derived from rental property, or another activity where you do not actively participate in the generation of the income; as opposed to active income which is wages or income from a business you run

Next: Q

Q
Quick Assets - Anything having commercial or exchange value that can easily be converted into cash, or that is already in cash form

next: 'R'

R
Realized Gain - an increase in an investment when it is sold; the investment may have gained in value for a while but it is not "realized" until it is sold

Next: S

S
Service Shares - Mutual fund units that charge service fees to their shareholders

next: 'T'

T
Tactical Asset Allocation - in an actively managed portfolio, the portfolio manager may purchase a different asset mix in the short term to take advantage of changes in the market

Next: U

U
Underfunded Pension Plan - company retirement plan that has more liabilities than assets; money needed to cover current and future retirements is not available

next: 'V'