GCPA Glossary

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Equity
Ownership in property or securities. Generally refers to an asset's market value minus debts against it.

ERISA
Employee Retirement Income Security Act of 1974.

Execution
The term used to describe the completion of a transaction in which a stock is sold by a broker and purchased by a shareholder.

Expenses
Mutual fund shareholders pay expenses that go towards the operation and management of a fund. Refer to a fund's prospectus for complete information on risks, fees and expenses.

Family
A mutual fund company which offers investors a choice of two or more mutual funds, each with different objectives or investment strategies.

Futures
A contract in which a stock or commodity is purchased with the intention of reselling it. The stock is not received at time of purchase in hopes that the price will increase before it is, so that it can be resold immediately at a profit. This is a practice commonly used by fund managers of aggressive growth mutual funds.

Group insurance
The type of insurance which provides coverage for a group of people under one contract, called a master contract. The master contract is issued to the group policyholder and the insured group members are not parties to the group contract.

Group long term disability
Disability income insurance issued as a master policy to an employer to provide income for employees should they suffer a long term disability.

Guarantee of insurability
An optional disability income policy benefit that enables an insured to make increases to the policy on specified dates with evidence of financial insurability only required (no evidence of medical insurability is required).

Guaranteed minimum death benefit
Variable annuity contract owners may have the option of assuring that their beneficiaries will receive a guaranteed minimum death benefit that protects their principal against market fluctuations. With this option, beneficiaries receive either the contract value on the date the claim is approved or the highest contract value on any policy anniversary date, whichever is greater. There may be an additional cost for this benefit. Refer to the variable annuity's prospectus for complete information on risks, fees and expenses.

Hedging
A strategy used in conjunction with the buying and selling of futures. A money manager may purchase a security with the belief that the price will go up and that the shares may be sold at a profit.

High-risk investments
Investments considered speculative with regard to the receipt of positive investment returns or the potential loss of principle.

Home care
Provides long term care for those with considerable assistance needs. Services include medical, nursing, personal care, social and assisted daily living assistance. Generally reserved for those who do not need acute care but require more attention than is provided in an assisted living facility. Skilled nursing home care is daily nursing care which can only be performed by or under the direct supervision of skilled medical personnel.

Income
Stock dividends, bond interest and cash interest.

Income Yield
The portion of the company's return that comes from dividend income.

Index
A measure of securities used for the purposes of comparing the movement of securities of similar companies. An index is unmnagaed and you cannot invest directly in an index.

Index fund
A fund that specializes in the purchase of securities that match or represent a specific index. These funds charge fees which will reduce overall performance. Refer to the fund's prospectus for complete information on risks, fees and expenses.

Individual Retirement Account or Annuity (IRA)
A retirement savings plan for individuals. There are various types of IRAs, such as traditional and Roth.

Inflation
The loss of purchasing power due to a general rise in the prices of goods and services.

Interest
What a borrower pays a lender for the use of money. This is the income you receive from a bond, note, certificate of deposit, or other form of IOU.

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