Investment and Finance

Emerging Market occurs in a country which does not have a fully developed economy. Mexico and Russia are examples. Investments in these markets are usually characterized by a high level of risk and possibility of a high return. Emerging Market stocks are stock of companies located in developing nations. Politically and economically, these countries are not considered to have reached the degree of Stability associated with developed nations. They are considered to have a lesser degree of economic sophistication.

A Employee Stock Ownership Plan (ESOP) is a qualified retirement plan in which employees receive shares of the company stock.

A Hedge fund is a very specialized, Volatile investment company mutual fund that permits the manager to use a variety of investment strategies and techniques that are normally prohibited in other types of funds.
Generally, these techniques are borrowing money, selling short and utilizing options. These funds offer extraordinary gains with extraordinary above average risk.

An Initial Public Offering (IPO) is the first sale of a corporation's stock to the investing public.

The amount of money in the economy is sometimes referred to as the M1 M2 M3 indicators. M1 is a measure of domestic money supply accounting for currency, checking account balances and traveler's checks.
M2 is a measure of domestic money supply accounting for M1 plus savings and time deposits, repurchase agreements and money market accounts.
M3 is a measure of money supply that includes M2 plus large time deposits and money market fund balances held by institutions.

A Self directed 401(k) retirement plan is an investment option offered by some 401(k) plans that allows the plan participant to invest 401(k) money in mutual funds, individual stocks and or bonds that are not included in the plan.
Plans typically include a set number of mutual funds for their participants, and the window account allows individual investors more flexibility with their investment portfolio.
These accounts charge an annual maintenance fee as well as trading commissions which are known as a brokerage window account.

12-b charges are expenses levied from a fund's assets to cover marketing and distribution costs of the fund.

Decimalization is the conversion of all U.S. stocks and options pricing, quoting, trading and reporting from fractional to decimal pricing. Prices for stocks and options will be stated in dollars and cents ($50.25) rather than in dollars and fractions ($50 1/4).

The U.S. (SEC)Securities and Exchange Commission is requiring that all major U.S. Stock and Options Exchanges, as well as Nasdaq, change from fractional pricing to decimal pricing. U.S. brokerage firms will therefore be required to use decimal pricing. Decimalization pricing is expected to be beneficial for individual investors. Pricing is more easily understood in dollars and cents, which may encourage more people to buy and sell stocks and options. Decimalization pricing may also achieve savings for investors to the extent that it provides an opportunity to buy and sell stocks and options in smaller price increments per share.