Investment and Finance

The Certified Financial Planner (CFP) designation is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards, Inc. (CFP Board)[1] in the United States, Financial Planning Standards Council in Canada[2] and 22 other organizations affiliated with Financial Planning Standards Board (FPSB)[3], the international owner of the CFP mark outside of the United States. To receive authorization to use the designation, the candidate must meet education, examination, experience and ethics requirements, and pay an ongoing certification fee.

Foe referrals to local CFPs you may call the Financial Planning Association FPA at 800 282-7526 and the National Association of Personal Financial Advisors NAPFA at 888-333-6659.

Mutual funds are usually listed with ratings numbers such as 3/4. A rating of 5 = superior and a rating of 1 = poor. The ratings are calculated by Morningstar Inc. The first rating is based on the grouping of funds into four broad groups. The four groups are domestic stock funds, international stock funds, taxable bond funds and municipal bond funds. The second rating compares funds within a single type of similar funds. The ratings are grouped so that 35% of funds get a 3 while just 10% each get ratings 1 or 5. Note that the ratings illustrate past performance and not future forecasts.

Mutual funds are rated by past performance for the past 3 years as calculated by Morningstar Inc. The rating system in newspapers are represented by 2 numbers such as 4/3.
Ratings range from 1-5, 1 = poor and 5 = superior. The first rating shows the funds performance against a broad group of funds.
The second rating shows the funds performance against a narrower group of more similar funds. The ratings are adjusted for risk.
Two funds might have the same 3 year return but may have different ratings based on the funds volatility.

The Jensen index is an index that uses the capital asset pricing model to determine whether a professional money manager outperformed a market index.

The Chicago Board of Trade is an exchange where grain, gold, and treasury Bond futures and options are traded. Also the Chicago Board Options Exchange is an exchange where stock options, equity LEAPS, index options, and interest rate options are traded. Also the Chicago Mercantile Exchange is an exchange where financial futures, foreign currency futures, commodity futures, and futures options are traded.

A basis point is One hundredth of a percent 0.01%. It is used to measure changes in or differences between yields or interest rates.

The American Stock Exchange known as the AMEX is the second largest stock exchange in the U.S. The largest is the New York Stock Exchange NYSE. Stocks and bonds traded on the American Stock Exchange tend to be those of smaller companies than on the NYSE. Some index options and interest rate options trading also occurs on the American Stock Exchange.

A American Depositary Share (ADS) is a share issued under an American Depositary Receipt agreement which is actually traded.