Prout Financial Design

Terms

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Risk

In finance, risk refers to the degree of uncertainty about the rate of return on an asset and the potential […]

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Risk Classification

The process by which a company decides how its premium rates for life insurance should differ according to the risk

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Risk Tolerance

An investor’s ability and willingness to lose some or all of an investment in exchange for greater potential returns.

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Roth 401(k)

An employer-sponsored Roth 401(k) plan is similar to a traditional plan with one major exception. Contributions by employees are not

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Securities and Exchange Commission (SEC)

Federal agency created by the Securities Exchange Act of 1934 with the primary mission of protecting investors and maintaining the

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Security

An investment instrument such as a stock or bond.

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Settlement Options

The several ways, other than immediate payment in cash, in which a policyholder or beneficiary may choose to have policy

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Share Classes

Some mutual funds use multiple share classes for the same underlying portfolio. For example, investors that buy A shares pay

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Shareholder

An individual or entity that owns stock in a company.

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Short Sale

A short sale occurs when you sell stock you do not own. Investors who sell short believe the price of

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