Fund trading terms

1. Mutual Fund: A professionally managed investment fund that pools money from many investors to purchase securities such as stocks, bonds, and other assets. 2. Exchange-Traded Fund (ETF): A type of investment fund and exchange-traded product, with shares that are traded on stock exchanges. 3. Net Asset Value (NAV): The per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the fund's portfolio by the number of shares outstanding. 4. Load: A sales charge or commission paid to a broker or financial advisor when buying or selling shares of a mutual fund. 5. Redemption Fee: A fee charged by a mutual fund when an investor sells shares, often to discourage short-term trading. 6. 12b-1 Fee: A fee charged by some mutual funds to cover marketing and distribution expenses. 7. Expense Ratio: The percentage of a mutual fund's assets that is used to cover operating expenses, management fees, and other costs. 8. Front-End Load: A sales charge or commission paid when purchasing shares of a mutual fund. 9. Back-End Load: A sales charge or commission paid when redeeming shares of a mutual fund. 10. Brokerage Fee: The fee charged by a broker for executing a trade on behalf of an investor. 11. Market Order: An order to buy or sell a security at the current market price. 12. Limit Order: An order to buy or sell a security at a specific price or better. 13. Stop Order: An order to buy or sell a security once it reaches a certain price, also known as a stop-loss order. 14. Dollar-Cost Averaging: A strategy of investing a fixed amount of money at regular intervals, regardless of market conditions. 15. Asset Allocation: The process of dividing an investment portfolio among different asset classes such as stocks, bonds, and cash, to achieve a specific investment objective. 16. Diversification: Spreading investments across different asset classes, sectors, and regions to reduce risk. 17. Risk Tolerance: An investor's willingness and ability to withstand fluctuations in the value of their investments. 18. Volatility: The degree of variation in the price of a security or market index over time. 19. Beta: A measure of a security's volatility in relation to the overall market. 20. Alpha: A measure of an investment's performance relative to a benchmark index.