Prout Financial Design

Terms

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Closed-End Fund

A type of investment company that does not continuously offer its shares for sale but instead sells a fixed number […]

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Commission

Transaction fee paid to a broker for executing a securities trade. Commission amounts vary and are often dependent on the

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Commodity Indexes

Indexes that measure either the price or performance of physical commodities, or the price of commodities as represented by the

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Common Stock

Securities representing ownership in a corporation, which provide voting rights and entitle the holder to a share of the company’s

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Compound Interest

Interest paid on principal and on accumulated interest.

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Contingent Beneficiary

On most insurance applications, owners have the option to name a primary beneficiary and a contingent, or secondary, beneficiary. At

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Contingent Deferred Sales Load

A type of back-end load, the amount of which depends on the length of time the investor holds his or

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Conversion

A feature some funds offer that allows investors to automatically switch from one fund class to another, typically one with

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Convertible Bond

A corporate bond that can be exchanged for a specific number of shares of the company’s stock, usually common stock.

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Coupon

A feature of a bond that denotes the amount of interest due and the date that the payment will be

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