ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Basic investing terms you need to know - Part 3

Updated on March 13, 2011

When you open a financial magazine or business section of newspaper, you might have noticed some common financial terms that you don’t understand. I’ll try to provide some details of these terms. The following is the first part of the article. Please check my previous article part 1 & part 2.

Closed-End Fund (CEF)

Closed End Fund (CEF) is also known as Open End Fund. A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange such as New York Stock Exchange (NYSE) and/or Nasdaq. Please check my Closed End Fund article for details. The following is some sample of Closed End Funds:

Sample of Closed End Fund
Sample of Closed End Fund

Exchange Traded Fund

Exchange Traded fund (ETF) is an investment fund traded on various stock exchanges. The ETFs consist either bonds or stocks or combination between stocks and bonds and trades at NAV (net asset value) of its assets. Couple reasons why people invest in ETFs are: ETF is very tax efficient, low cost associated with ETF, and it is traded like a stock.

(click column header to sort results)
Fund Name  
Fund Family  
Net Assets  
Expense Ratio  
Large Blend
SPDR Trust Series 1
SPDR Gold Shares
SPDR Gold Trust
iShares MSCI Emerging Markets Index
Diversified Emerging Mkts
iShares Trust
iShares MSCI EAFE Index
Foreign Large Blend
iShares Trust
iShares S&P 500 Index
Large Blend
iShares Trust

Mutual Fund

Mutual fund is an investment that pools shareholders money and invests it toward a specified goal. Typical the pool money is invested by a professional investment manager. You can buy mutual fund from various provider such as Fidelity, Vanguard, T. Rowe Price, Janus, etc. Various fees are typically associated with mutual fund such as Front-end load fees, back-end load fees, management fees, etc. You can buy various mutual funds such as bond mutual fund, stock/equity mutual fund, hybrid (mix of bond & stock) mutual fund etc.

Top Mutual Fund Providers

(click column header to sort results)
Mutual Fund Company  
Assets Under Management (AUM)  
The Vanguard Group
$957 Billion
American Funds
$931.5 Billion
$717 Billion
Barclays Global Investors
$287 Billion
Franklin Templeton Investments
$256.7 Billion
Pimco Funds
$218.7 Billion
T Rowe Price Investments
$192.1 Billion
State Street Global Investors
$176.8 Billion
Oppenheimer Funds
$129.9 Billion
Dodge & Cox
$118.2 Billion
Nasdaq Composite Index
Nasdaq Composite Index


The National Association of Securities Dealers Automated Quotations exchange, including the largest and most widely-traded OTC stocks. It has several indexes such as NASDAQ composite, NASDAQ-100, NASDAQ Biotech index. Major technology stocks are usually listed in NASDAQ such as Google (GOOG), Apple (AAPL), Microsoft (MSFT).

Wal*Mart Profit Margin
Wal*Mart Profit Margin

Profit Margin

Net profit after taxes divided by sales for a specified period, expressed as a percentage. Profit Margin's time period measured is the Most Recent Quarter, annualized. Usually, profit margin is helpful when comparing stocks within similar industries. A higher Profit Margin indicates a more profitable company, which means it's probably doing something great for investors/ shareholders.

Return on Asset (ROA)

An indicator of how profitable a company is relative to its total assets. ROA usually provide an indicator as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is usually shown as a percentage. Sometimes ROA is referred to as "return on investment". For example please check above Walmart ROA.

Standard & Poor's 500 (S&P 500)

An unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares.

Sample of S&P 500 stocks
Sample of S&P 500 stocks


    0 of 8192 characters used
    Post Comment
    • chan0512 profile imageAUTHOR


      9 years ago from Camarillo, CA


    • LillyGrillzit profile image

      Lori J Latimer 

      9 years ago from Central Oregon

      29!!!!!!! One more!!!!! You Go!!!!Write On!!!!


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)