Investment Vehicle Characteristics Flashcards
small-cap
Stocks with a market cap of $300 million to $2 billion.
spousal IRA
A separate individual retirement account established for a spouse with little or no earned income. Contributions made by the working spouse grow tax deferred until withdrawal.
unit investment trusts (UITs)
An investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time. It is designed to provide capital appreciation and/or dividend income.
exchange traded funds (ETFs)
A type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. Similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock.
real estate investment trusts (REITs)
A company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.
