Each stock share represents a percentage of ownership in the company. This ownership entitles the shareholder to vote in the election of directors and on other matters taken up at shareholder meetings or by proxy.
"Junk" or "high yield" bonds are issued by companies with poor credit ratings. To attract investors, "junk" bonds pay higher yields than higher-graded corporate bonds. Compared with better-rated "investment-grade" bonds there is a greater risk that companies issuing "junk" bonds will default on their interest payments or even go bankrupt and be unable to redeem their bonds when they mature.
Funds that do not charge a front-end sales charge or a deferred sales charge are called no-load funds. FINRA rules also require that the 12b-1 fees not exceed 0.25% of the fund's average annual net assets in order to call itself a no-load fund. No-load funds can be purchased without the assistance of a broker or investment professional. For those wanting professional advice, no-load funds also may be purchased through an investment adviser or broker, but you'll typically pay a fee for this advice. This means you will be paying a fee on top of the underlying mutual fund expenses.
Hedge funds are basically private investment pools, usually only open to limited numbers of wealthy, financially sophisticated investors. They do not advertise or publicly offer their securities and are usually not required to register with the SEC. As a result, unregistered private hedge funds do not provide many of the investor protections that apply to registered investment products such as mutual funds. For example, hedge funds generally are not subject to numerous mutual fund rules, such as regulations requiring a certain degree of liquidity, limiting how much can be invested in any one investment, and protecting against conflicts of interests.
Section 529 plans are tax-advantaged programs that help families save for college. They are named after the section of the federal tax code that governs them, Section 529. There are different tax-advantaged alternatives available for saving for college that families should review when making decisions regarding college funding.
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