ChikoMac Capital Group, LLC
- a private advisory firm.
| Plant your financial future |
Glossary.
We understand that navigating the financial markets can be a tedious and confusing undertaking. With our market knowledge and industry experience, we can support the full spectrum of your questions. From market strategies, portfolio diversification and tax strategies, our team is here to consult with you in a comfortable and friendly manner.
If you'd like to begin exploring the financial markets at your leisure, browse through a few of our basic resources below, and of course, let us know if you have questions along the way.
Federal Reserve Bank: http://www.federalreserve.gov/
Common types of securities
- Exchange Traded Fund (ETF):
- A security that tracks an index and represents a basket of stocks like an index fund, but trades like a stock on an exchange.
- Stock
- Capital issued by a corporation through the issue of shares that entitle shareholders to an ownership interest in the company.
- Mutual Fund
- An account established by a financial entity that combines the money of multiple investors and invests in a variety of financial securities.
- Bond
- A debt security in which the issuer owes the holder debt and is obliged to repay the principal and interest at a later date.
- REIT
- A company or security dedicated to owning and operating income producing real estate assets with certain tax advantages.
Basic Investment Terms
- Large cap
- A company that has total market capitalization usually between $10 billion and $200 billion.
- Mid cap
- A company that has total market capitalization between $2 billion and $10 billion.
- Small cap
- A company with small market capitalization, generally ranging from $300 million to $2 billion.
- International fund
- A fund that invests in stocks of foreign countries.
- Value fund
- A fund that invests in securities with lower-than-average prices as measured by price-to-earnings or price-to-book ratios. A value company often pays regular dividend income to shareholders and sells at relatively low prices in relation to its earnings or book value.
- Growth fund
- A fund that seeks long-term capital appreciation by selecting corporations to invest in that should grow more quickly than the general economy.
- Bear market
- A prolonged period of market conditions whereby investment prices fall, accompanied by widespread pessimism.
- Bull market
- A market period which prices are moving upward over time.