A  B  C  D  E  F  G  H  I  J  K  L  M N  O  P  Q  R  S  T  U  V  W  X  Y  Z

Back-End Load
A commission or sales fee that is charged upon the redemption of mutual fund shares or variable annuity contracts. It declines annually, to zero over an extended holding period as described in the prospectus.

Balanced Fund 
   A mutual fund whose stated investment policy is to have at all times some portion of its investment assets in bonds and preferred stock as well as in common stock in an attempt to provide both growth and income.

Balanced Investment Strategy 
   A method of portfolio allocation and management aimed at balancing risk and return; a balanced portfolio may combine stocks, bonds, packaged products and cash equivalents.

Bear Market 
   A market in which prices of a certain group of securities are falling or are expected to fall. See also Bull Market.

Blue Sky Laws 
   The nickname for state regulations governing the securities industry. The term was coined in the early 1900s by a Kansas Supreme Court justice who wanted regulations to protect against “speculative schemes that have no more basis than so many feet of blue sky.” 

Bond 
   A legal obligation of an issuing company or government to repay the principal of a loan to bond investors at a specified future date. Bonds are usually issued with a par or face value representing the amount of money borrowed. The issuer promises to pay a percentage of the par value as interest on the borrowed funds. The interest payment is stated on the face of the bond at issue.

Bond Fund 
   A mutual fund whose investment objective is to provide stable income with minimal capital risk. It invests in income-producing instruments, which may include corporate, government or municipal bonds.

Bond Rating 
   An evaluation of the possibility of default by a bond issuer, based on an analysis of the issuer’s financial condition and profit potential. Bon rating services are provided by, among others, Standard & Poor’s, Moody’s Investors Service and Fitch Investors Service.

Bond Yield 
   The annual rate of return on a bond investment. Types of yield include nominal yield, current yield, yield to maturity, and yield to call. Their relationships vary according to whether the bond in question is at a discount, at a premium or at par.

Breakpoint 
   The schedule of sales charge discounts offered by a mutual fund for lump-sum or cumulative investments.

Broker 
   An individual or firm that charges a fee or commission for executing buy and sell orders submitted by another individual or firm.

Broker-Dealer 
   A person or firm in the business of buying or selling securities. A firm may act as both broker (agent) or dealer (principal) but not in the same transaction. Broker-dealers normally must register with the SEC, the appropriate SROs and any state in which they do business.

Bull Market 
   A market in which prices of a certain group of securities are rising or are expected to rise.