GLOSSARY OF FINANCIAL & INVESTMENT TERMS
A-B C-D E-F G-H I-J K-L M-N O-P Q-R S-T U-V W-X Y-Z
Unit Investment Trust (UIT) |
A UIT is an SEC-registered investment company which purchases a fixed, unmanaged portfolio of assets and then sells shares in the trust to investors on the secondary market. Capital gains, interest and dividend payments from the trust are passed on to shareholders at regular periods. UITs typically incur lower annual operating expenses than mutual funds since they are not actively managed. |
| Universal Life | Universal life combines the low-cost protection of term life insurance with policy cash values that earn a competitive interest rate. The policy is much more flexible than whole life, allowing the policyholder to increase or decrease premium payments and the amount of insurance coverage. Amounts can be permanently withdrawn from the cash value while the policy is still in force. There may, however, be significant charges on these withdrawals in the early years of the policy, and withdrawals may reduce the death benefits payable. |
| Variable Life Insurance | A variable life insurance policy is a permanent life policy under which a portion of the premium goes into a cash reserve account that is invested, as you direct, in one or more of a series of managed investment portfolios offered under the policy. Generally, the cash value is not guaranteed and the policyholder bears that investment risk. Policies differ widely on the number and type of portfolios offered, and investors can usually elect to move from one portfolio to another. You should read the prospectus carefully before selecting any variable life insurance product |
| Variable Universal Life | Variable universal life combines the premium flexibility of universal life with the investment flexibility of variable life. |
Venture Capital |
Venture capital investments finance the growth and development of small companies that have significant opportunities for expansion. Many venture capital arrangements enable early investors to recoup their investment through the sale of the company or its technology to a larger company or even through an initial public offering (IPO) of the company’s shares. Companies such as Apple Computer and Intel are examples of early venture capital investments. |
