Review and Products/Services Flashcards
The interest rate paid to the bondholder for “lending” their money to the bond issuer
Coupon Rate
Interest rates and Bond yields move in
same direction
Interest rates and bond price move in
opposite direction
When the price of a bond can move up or down until it matures
Interest Rate Risk
The typical maturity rate of short term bonds
1-3 years
Risk that purchasing power is lost
Inflation Risk
Companies whose stock prices are considered low relative to the underlying VALUE of the company
Value
Expense ratio is paid by the customer
Not visible, serves to reduce performance
a fee paid when you sell shares (typically goes to the broker)
Deffered Sales Charge
Amount paid when you sell shares (typically goes to broker)
Sales Charge
fee charged by funds to shareholders when they sell/redeem shares
redemption fee
fees paid out of fund assets for managing fund
management fee
fees paid out of fund assets to cover the cost of marketing and sell fund shares
Distribution fee
fund’s annual fund operating expense expressed as a percentage of the fund’s average net assets
Total Annual Fund Operating Expenses
Fund Provider Fund Objective Same Investment Manager Portfolio Securities Same Level of Risk
Similarities that all share classes (Class A, B, R, I) have in common.
Large Cap, Small/Intermediate Cap, International
Classifications of stock
Different Customers
Different Cost
Net Asset Value Different
Performance
Differences that share classes (Class A, B, R, I) have
QDIA
Qualified Default Investment Alternative
SPL
SecurePath for Life
PX
PortfolioXpress
TDF
Target Date Fund
CMP
Custom Model Portfolio
AAF
Asset Allocation Fund
TMA
Transamerica Managed Account
