Glossary of Terms (S - Z)

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Savings Account
A basic savings account is one that generally has a low minimum balance, and interest is paid on all amounts deposited. You can take the money out of your savings account any time you want.

Security, Securities (pl.)
A general term for stocks, bonds and other investments.

Securities and Exchange Commission
US Also known as the SEC, this is the primary US government agency responsible for protecting investors and making sure that securities markets operate fairly and honestly. The SEC is also responsible for regulating the day-to-day operations and disclosure obligations of mutual funds and other securities.

Share
A unit of ownership of a company or a mutual fund.

Shareholder
An investor who owns shares of a mutual fund or shares of stock in a company.

Statement of Cash Flows
A financial statement that shows how much money a company has coming in and going out.

Stock
A share of ownership in a corporation.

Stock Exchange
The marketplace in which shares of stock are traded, for example the New York Stock Exchange (NYSE), American
Stock Exchange (AMEX), Over-The-Counter (NASDAQ). There are also stock exchanges in Boston, Cincinnati, Philadelphia and in cities overseas.

Total Return
A measure of investment performance over a period of time. It is usually expressed as a percentage. For a mutual fund, total return is made up of two things: the change in the fund's share price and the money the fund earns from dividends and capital gains.

Transfer Agent
The firm hired by a company or a mutual fund to keep the official record of its registered shareholders. This record includes a shareholder's name and address and the number of shares owned. The transfer agent also handles the administrative work involved with the purchase and sale of shares.

Volatility
A type of risk associated with investing, particularly in stocks or the stock market in general. It refers to the fact that some security prices will rise and fall more rapidly over short periods of time.

Yield
This percentage is calculated by dividing the annual dividend by the latest available selling price of the security. For a bond, the yield is the relationship of a bond's coupon rate (the amount of interest a bond issuer is paying to bond holders) to its market value. If a bond increases in price, the yield will decrease. If a bond decreases in price, the yield will increase.
For a money market fund, yield is usually calculated for periods of seven days. A seven-day money market yield shows the investment return during by the fund during that period.

Zero coupon bond
A fixed-income security that does not pay interest and is sold at a deep discount from it face value.

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