| Term |  | Definition |
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| Securities | | Stocks, bonds, and other similar investment instruments. |
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| Short Term Risk | | The potential for loss of asset value faced by short-term investors. This is the category most people associate with risk when they think of investments, particularly with respect to stocks. Because they need their funds sooner, short-term investors in stocks and other securities are more subject to market volatility than people who invest over the course of decades. |
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| Socially Responsible Funds | | Mutual funds that strive to reflect the beliefs and values of the investor, balancing performance with investment in companies that do not support tobacco or alcohol use, environmental degradation, or other perceived social ills. |
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| Spouse Coverage | | An optional rider on certain life insurance policies that provides for supplemental term coverage for the insured's spouse up to the face value of the original policy or $100,000, whichever is greater. |
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| Stock | | Shares in the ownership of a company. They represent a claim on the assets and the earnings of that company. The more stock an investor owns in a company, the greater the share of that company's profit the investor is entitled to, typically in the form of dividends. Should the company be sold or liquidated, the stockholder is also entitled to a portion of its assets, once the company's creditors and debts have been satisfied.
There are two kinds of stock: Common and Preferred. Stock ownership offers the potential for wealth creation through increase in value of the shares or through the payment of a dividend. There is also a risk of loss of value.
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| Stock Fund | | A type of mutual fund that is based on stock. |
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| Tax-Deferral | | A capability offered by certain financial vehicles, such as traditional IRA's, tax-deferred annuities, and 529 Educational Savings Plans - that enables you to save assets before taxes, deferring tax payments on your returns until after you start to draw on the balance. This fosters more rapid asset growth over time, supported by the power of compound interest. |
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| Term Life Insurance | | A type of life insurance policy that is effective for a specific period of time. In general, term life policies provide coverage only (no cash value) and are renewable up to a certain age. |
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| Treasury Bonds | | Certificates of debt issued by the United States government, and backed by its full faith and credit, having a maturity date of between ten and thirty years, with denominations of between $1,000 and $1 million. |
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| Underinsured | | Having too little insurance coverage to adequately provide for the protection of your family or your assets. |
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| Volatility | | With respect to the stock market, the rate at which a stock price increases and decreases over a given period of time. The more rapid the changes in price, the greater the volatility. |
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| Voting Stock | | Stock that enables the owner to vote as a shareholder of the company. |
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| Waiver of Premium | | This is an optional rider on certain life insurance policies that provides for coverage of premium payments should the insured become fully disabled before age 60. |
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| Whole Life Insurance | | A type of life insurance that offers lifetime coverage. In general, whole life policies feature level premiums, stable coverage amounts, and cash value that builds over time. Also referred to as "permanent" life insurance. |
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| Yield | | An investment's rate of return on an annual basis. With long-term savings accounts, such as certificates of deposit, this is often expressed as a percentage, or annual percentage yield (APY). |
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