For an adjustable interest rate loan, the margin is the number of percentage points between the index rate and the interest rate you pay.
market capitalization
A measure of a company's size, based on the number of outstanding shares of its stock, multiplied by the price per share.
Money market
A type of mutual fund that buys very short-term bonds and other loans in an effort to maintain its value at $1 per share.
net worth
The total value of your assets minus your liabilities.
open-end funds
A mutual fund that sells as many shares as investors want to buy, and repurchases any shares that investors want to sell.
portfolio
The collection of investments you hold.
power of attorney
A legal document in which you give another person the power to make financial decisions for you under certain conditions, such as your incapacity.
principal
For a mortgage or other loan, the amount you borrow. When investing, principal is the amount of your initial investment. If you buy a bond, the principal is the amount you invest and the face value of the bond.
prospectus
An official document that states a specific stock or mutual fund's investment objective, fees and past performance.
