GLOSSARY (0-9)

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1%/10 net 30

A way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days. For example, if "$1000 1/10 net 30" is written on a bill, the buyer can take a 1% discount ($1000 x .01 = $10) and make a payment of $990 within 10 days, or pay the entire $1000 within 30 days.

10-K

An annual report required by the SEC each year that is a comprehensive summary of a company's performance. Typically the 10-K contains much more detail than the annual report. It includes information such as company history, organizational structure, equity, holdings, earnings per share, subsidiaries, etc.

10-Q

A quarterly report submitted by all public companies to the SEC in which firms are required to disclose relevant information regarding their financial position. This must be done on time, and the information should be available to all interested parties.

10-year Treasury Note

A debt obligation issued by the U.S. Treasury that has a term of more than one year, but not more than 10 years.

1040 Form

The standard IRS form that individuals use to file their annual income tax return.

1040A Form

A simplified version of the 1040 form for individual income tax. To be eligible to use a 1040A form, an individual must not itemize or own a business and their taxable income has to be under $50,000.

1040EZ Form

Similar to the 1040 income tax form, 1040EZ offers a faster and easier way to file your taxes. This form is only eligible for people with income less than $50,000 and interest income of $400 or less.

1040PC Form

An income tax return that is prepared by computer in a three column "answer-sheet" format. It only prints the bottom line number, dollar amount, and, for most entries, a brief description called a "legend page."

12B-1 Fees

A provision that allows a mutual fund to collect a small fee from investors. This fee is designated for promotions, sales, or any other activity connected with the distribution of the fund's shares. The fee must be reasonable: 0.5% to 1% of the fund's net assets, and up to a maximum of 8.5% of the offering price per share.

12B-1 Plan

A no-load mutual fund that is allowed to use fund assets to pay for distribution costs rather than charging a 12b-1 fee. The 12b-1 fee is an annual percentage charge based on the current value of the investment.

30 Year Treasury

A U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury used to be the benchmark U.S. bond and one of the world's most widely watched financial instruments.

3C1

A portion of the Investment Company Act of 1940 that permits the exclusion of investment companies from standard registration requirements with the SEC if they have fewer than 100 U.S. investors.

3C7

A portion of the Investment Company Act of 1940 that permits the exclusion of investment companies from standard registration requirements with the SEC if all U.S. investors are considered to be "qualified purchasers" or "accredited investors."

401(k) Plan

A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post and/or pre-tax basis. Employers may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit sharing feature to the plan. Earnings accrue on a tax-deferred basis.

403(b) Plan

A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations and certain ministers. Individual accounts in a 403(b) plan can be any of the following types:- An annuity contract, which is provided through an insurance company,- A custodial account, which is invested in mutual funds or- A retirement income account set up for church employees.Generally, retirement income accounts can invest in either annuities or mutual funds.

457 Plan

A non-qualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.

52 Week High/Low

The highest and lowest prices at which a stock was sold in the past year (52 weeks).

529 Plan

A plan that allows for the prepayment of qualified higher education expenses at eligible educational institutions. Also known as a "qualified tuition program."

8-K

A report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the SEC.

90-Day Letter

An IRS notice sent after an audit stating that there was a discrepancy or error within an individuals taxes and they will be assessed unless petitioned.

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