Glossary
| Term | Definition |
|---|---|
| Partnership |
A contract under which two or more individuals manage and operate a business venture.
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| Policy Loan |
A loan made by an insurance company to a policyholder. Policy loans are secured by the cash value of a life insurance policy. Withdrawals of earnings are fully taxable at ordinary income tax rates. If you are under age 59_ when you make the withdrawal, you may also be subject to a 10% federal income tax penalty. Also, withdrawals may reduce the benefits and value of the contract.
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| Policy Rider |
A provision to a life insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost.
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| Policyholder |
The person or entity who holds an insurance policy; usually the client in whose name an insurance policy is written.
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| Portfolio |
The combined investments of an individual investor or mutual fund.
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| Power of Attorney |
A legal document that grants one person authority to act for another person in specific legal or financial matters in the event that said individual becomes incapacitated.
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| Prenuptial Agreement |
A contract entered into by those contemplating marriage that sets forth how their individual property will be divided should they ultimately divorce.
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| Principal |
The original amount invested in a security, excluding earnings; the face value of a bond; or the remaining amount owed on a loan, separate from interest.
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| Profit-Sharing Plan |
A defined-contribution plan under which employees share in company profits. The funds within the plan accumulate tax deferred.
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| Property |
Anything over which a person or business has legal title. Property may be held in common or privately owned.
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| Prospectus |
A legal document that provides the information an investor needs to make an informed decision about an investment offered for sale to the public. Prospectuses are required by and filed with the Securities and Exchange Commission.
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