An individual or firm that offers investment advice for a fee. Both are usually registered with the Securities and Exchange Commission and/or the states in which they practice.
A qualified professional who helps clients set their financial goals and then meet them.
A fee an investor pays a broker for executing a transaction--buying or selling stock. The commission may be a flat fee, for example, $75.00 per trade; it may be set at a certain amount per share of stock involved in the transaction; or it may be based on the total value of the transaction.
A firm that helps investors trade securities.
A contract in which one party, called the insurer, agrees to protect another party, called the insured, against loss, damage, or medical costs in return for a premium. Another way to look at insurance is to see it as the assumption of risk by another party. In return for a periodic fee (the premium) and a set of requirements by which to abide, an insurance company will assume risks taken by those covered. Insurance companies are regulated by the insurance commissioners of their respective states or territories.
A professional license designation awarded by the Certified Financial Planner Board of Standards in Denver, Colorado to candidates who meet their licensing requirements.
The regulatory body created by the Securities Exchange Act of 1934. The SEC regulates securities markets and enforces securities laws.
An international non-profit organization serving investment practitioners and educators. Formerly known as the Association for Investment Management and Research (AIMR), the CFA Institute provides education to investment managers and analysts. It awards the Chartered Financial Analyst designation.
The purchase of a potentially appreciable asset such as a stock, a bond, a property, or a unit of production. The purchase provides funds for the growth of businesses and governments.
A professional license designation awarded by the CFA Center in Charlottesville, Virginia to candidates who meet their licensing requirements.
A person or company that can provide advice to issuers and investors of securities or other investments.
A business, with a state or federal government charter, that provides services such as paying interest on deposits, issuing and collecting checks, and making loans, especially to businesses. Shareholders receive part of a bank's profit as a return on their investment in the bank, represented by the stock that they've purchased.
A not-for-profit financial cooperative owned by its members. One is eligible to join a particular credit union if he or she belongs to the field of membership defined in its charter. All members have the right to democratically elect a board of directors. The board gives the credit union's management and staff general instructions. Historically, credit unions encourage thrift among members and provide them with credit at a low rate.
A financial institution, with a state or federal government charter, that takes deposits from individuals and uses them to make loans, especially mortgage loans. Depositors or shareholders receive part of a savings & loan's profits as a return on their investment in the savings & loan, represented by the money they've deposited or the stock that they've purchased.
