Glossary
| Term | Definition |
|---|---|
| Securities and Exchange Commission (SEC) |
A federal agency with a mandate to protect investors; to maintain fair, orderly, and efficient markets; and to facilitate capital formation. The SEC acts as one of the primary regulatory agencies for the investment industry.
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| Self-Directed IRA |
An individual retirement arrangement in which the account holder can direct the investment of funds, subject to certain conditions and limits.
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| Share |
A unit of ownership in a corporation or financial asset.
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| Split-Dollar Plan |
An arrangement under which an employer and employee share the obligations and benefits of a life insurance policy.
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| Spousal IRA |
An individual retirement arrangement under which an IRA is established for a non-working spouse and is funded with contributions from the working spouse. Spousal and non-spousal IRAs are subject to combined annual contribution limits and must meet certain requirements. Once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59_, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.
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| Stock Certificate |
A legal document that certifies ownership of a specific number of shares of stock in a corporation. In many transactions, the stockholder is registered electronically, and no certificate is issued.
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| Stock Purchase Plan |
A program under which an employer offers its employees the opportunity to buy stock at a favorable price, often through payroll deduction.
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