GCPA Glossary

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Capital appreciation
Capital appreciation is the increase in the value of your original investment.

Cash equivalents
Highly liquid, relatively stable investments which can be easily converted into cash, such as Treasury bills and money market funds.

Cash reserves
Cash deposits, short-term bank deposits, money market instruments and Treasury bills.

Cash surrender value
The amount of money which an insurance policyowner will receive as a refund if the policyowner cancels certain types of insurance policies.

Certificates of deposit (CD)
A savings instrument offered by a bank which offers a specified interest rate for a specified period of time. Bank CDs are FDIC insured and offer a fixed rate of return.

Claim
A request for payment under the terms of a policy.

Closed-end fund
A type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker.

Closing price
The price of a stock or other security at the end of the day.

Cognitive impairment
A diminished mental capacity such as difficulty with short-term memory, often associated with Alzheimer's Disease or Senile Dementia.

Commercial papers
Short-term debt (due in less than 90 days) issued by corporations. Commercial paper has no collateral backing it.

Common stock
The shares offered by a corporation giving a shareholder partial ownership of the company as well as privileges including voting rights and receipt of dividends.

Community based care setting
Programs which provide services at a convenient location in the community. Commonly these programs provide assistance with meals, transportation or homemaking and also may include professional nursing or therapy services provided by licensed care givers in the home.

Compound interest
Interest earned not only on the original investment, but also on accumulated earnings.

Consumer Price Index
The index is compiled by the U.S. Bureau of Labor, a governmental agency, which follows the cost of living by tracking the changes in the price of basic goods and services over time. This index measures inflation.

Contrafund
A fund with an investing strategy that seeks the stock of out-of-favor companies which have good fundamentals, such as low debt or good potential earnings, in the belief that the stock will increase in value. Refer to the fund's prospectus for complete information on risks, fees and expenses.

Corporate bonds
Debt instruments issued by a private corporation, as distinct from those issued by a government agency or a municipality. Corporates typically have four distinguishing features: (1) they are taxable; (2) they have a par value of $1,000; (3) they have a term maturity ? which means they come due all at once; (4) they are traded on major exchanges.

Cost of living rider
A benefit that can be added to a disability policy that increases the monthly benefit annually during a claim.

Credit quality
Credit quality is a measure of the likelihood that a debt (i.e., bond) issuer will make interest payments on schedule, as well as repay the principal on the promised date. A high quality rating indicates that the debt issuer may be in a good position to meet interest payments and repay the principal as scheduled.

Credit risk
The risk of default, in which a bond issuer may not make the complete payments. Any bond mutual fund may risk loss from credit risk.

Currency risk
Variability in return caused by change in foreign exchange rates.

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