Sterling Savings Bank - Investment GLossary

Investment Glossary

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Annuity Appreciation Bond Certificate of Deposit Compound Interest Cumulative Rate of Return Deflation Depreciation Equities Fixed-Income Securities Government Bonds Inflation Interest Market-Valued Account Maturity Money Market Fund Mutual Fund Portfolio Principal Return on Assets Risk Securities Yield Yield to Average Life Yield to Call Yield to Maturity	Annuity An investment from which one receives income for a lifetime or specific number of years. Appreciation Increase in the value of an investment over time. Bond A certificate of debt issued by a company or the government. Bonds generally pay a specified amount of interest for a specified time period and repay at maturity. Certificate of Deposit A bank deposit that pays a specified rate of interest for a certain period of time. Compound Interest Computed by applying the stated percentage rate both to the original amount invested and to the accumulated interest of previous periods. Cumulative Rate of Return The total return on an investment over a specified time period. Deflation The increase of purchasing power due to a general decrease in the prices of goods and services. Depreciation Decrease in the value of an investment over time. Equities Investments in which the investors obtain a portion of ownership. Fixed-Income Securities A security that pays a fixed rate of return, such as a bond. Government Bonds Obligations of the U.S. government, regarded as among the highest-grade issues in existence in terms of safety of principal. 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 that you receive from a bond, certificate of deposit, or other form of IOU. Market-Valued Account An investment account whose value fluctuates with the market prices of the specific securities within the account's portfolio and which offers no guarantee of principal and interest. Maturity The date on which the principal amount of a loan or bond comes due and the investor's principal must be paid back. Money Market Fund A mutual fund invested in short-term securities that are easily turned into cash. Mutual Fund A mutual fund is a professionally managed pool of securities. A mutual fund offers the advantages of diversification-U.S. stocks and/or bonds in domestic funds, global funds (a combination of U.S. and foreign stocks and/or bonds) and international funds. Portfolio The group of individual securities held by a person or an institution. Principal The face value or par value of a debt instrument that is separate from interest. Return on Assets Measures the after-tax and after-debt service profitability of a company. Risk Uncertainty regarding the expected rate of return on and/or principal value of an investment. Securities Any instruments that represent equity ownership or debt obligation. Yield The return on an investment from dividends or interest expressed as a percentage of either cost at purchase or the current price. Yield to Average Life Used instead of yield to maturity or yield to call where bonds are retired systematically during the life of the issue as in the case of a sinking fund with contractual requirements. Yield to Call Yield on a bond assuming it will be redeemed by the issuer at the first call date specified in the indenture agreement. Yield to Maturity The rate of return an investor will receive for a long-term, interest-bearing investment (such as a bond) if held to maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments.
Investment and Insurance Products are offered through FINTEGRA FINANCIAL SOLUTIONS, an independent registered broker/dealer, member FINRA/SIPC, Office of Supervisory Jurisdiction phone 763.585.0503. Sterling Savings Bank and FINTEGRA FINANCIAL SOLUTIONS are not affiliated. Harbor Financial Consultants are Registered Representatives of Fintegra. Investment and Insurance Products: Are NOT Insured by Any Government Agency Are NOT Bank Deposits Carry NO Financial Institution Guarantee Are NOT FDIC Insured May Lose Value Fintegra Registered Representatives are registered to conduct securities business and licensed to conduct insurance business in their respective states of business. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only, and does not constitute an offer to sell, or a solicitation of an offer to purchase, brokerage services to persons outside of the U.S.

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