Intro to investing

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Term Definition
Back End Load Fees paid to the mutual fund company when selling a mutual fund.
Dividend A payout of profits by a company to all shareholders.
FDIC Insured The FDIC (Federal Deposit Insurance Corporation) is a government agency that insures depositors’ money. Banks and savings and loan companies that are FDIC-insured pay a percentage of their deposits to the FDIC to pay for the insurance.
Front End Load Fees paid to the mutual fund company as an entry requirement into certain mutual funds.
Inflation Rise in prices that effectively makes cash have less buying power over time.
No load Fund A mutual fund that charges no front-end or back-end load fees.
Savings Account A safe, low-return investment available from banks. There is generally no minimum deposit for this type of account, making it perfect for kids and teens just starting out.
Yield For a savings account, the percentage of interest earned annually. For a stock, the annual dividend divided by the share price.
Expense Ratio For a mutual fund, an annual percentage the fund takes as payment. Expense ratios of different funds can be compared to find the best value.

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