Related Words

Investment: Money directed toward the purchase, improvement and development of an asset in expectation of income or profits.

Dividend Reinvestment Plan (DRIP): Many publicly held companies allow shareholders to reinvest dividends in company stock or buy additional shares through dividend reinvestment plans, or DRIPs. Enrolling in a DRIP enables you . . . View Full Definition

Real Estate Investment Trust (REIT): REITs are publicly traded companies that pool investors' capital to invest in a variety of real estate ventures, such as apartment and office buildings, shopping centers, medical facilities, . . . View Full Definition

Registered Investment Company: An investment firm which is registered with the SEC and complies with certain stated legal requirements.

Diversified Investment Company: Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.

Fixed-Income Investment: Fixed-income investments typically pay interest or dividends on a regular schedule and may promise to return your principal at maturity, though that promise is not guaranteed in most cases. . . . View Full Definition

Municipal Investment Trust (MIT): A unit investment trust that buys municipal bonds and usually holds them until maturity, passing the bond income on to shareholders, usually tax-free.

Statutory Investment: Used in the context of general equities. Standard deviation of the difference between the portfolio return and the desired investment benchmark return.

Guaranteed Investment Contract (GIC): A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically . . . View Full Definition

Mutually Exclusive Investment Decisions: Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.