Glossary
401(k) plan Tax-deferred savings plan offering eligible employees the opportunity to save and invest a portion of their wages in available plan funds on a before-tax basis, with earnings posted periodically.
403(b) plan Tax-deferred savings plan, similar to a 401(k) plan, offering eligible employees of educational institutions and certain nonprofit organizations the opportunity to save and invest a portion of their wages in available plan funds on a before-tax basis, with earnings posted periodically.
457 plan Tax-deferred savings plan, similar to a 401(k) plan, offering eligible governmental employees the opportunity to save and invest a portion of their wages in available plan funds on a before-tax basis, with earnings posted periodically.
absolute priority order The preset order established for satisfying a company’s obligations and interests in the event of its bankruptcy.
actively managed fund Fund in which an investment manager carries out an investment strategy based on security selection and market timing that is intended to beat the market.
anchoring Inertia or reluctance investors have to change their original convictions, causing stock share prices to respond only gradually to new information.
annuity Series of periodic payments payable as income over a specified period, such as a lifetime or period certain.
back-testing Simulation of investment performance of a fund or strategy in the context of past market performance.
balanced fund Fund holding ...
