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Bear market. A prolonged period of falling securities prices.

Beta. A measure of a fund's volatility in relation to the stock market, as measured by a stated index. By definition, the beta of the stated index is 1; a fund with a higher beta has been more volatile than the index, and a fund with a lower beta has been less volatile than the index.

Blue chip. Common stock of a nationally known company that has a long record of profit, growth, and dividend payment; and a reputation for quality management, products, and services.

Book value. Net asset value of a company's securities. Book value can be a guide in selecting underpriced stocks and is an indication of the ultimate value of securities in liquidation.

Bond. Debt security or IOU issued by a government entity or corporation, which generally pays a stated rate of interest, and plans to return the principal amount of the loan on the maturity date. Unlike stockholders, bondholders do not have corporate ownership privileges.

Bourse. French term for stock exchange.

Bull market. Term used to describe a prolonged rise in the price of securities.

Call date. Date on which a bond may be redeemed before maturity.

Capital (or principal). Initial amount of money invested, excluding any subsequent earnings.

Capital appreciation. Increase in the value of an asset such as a stock, bond, commodity or real estate.

Capital gain or loss. Net profits or losses from the sale of securities in the fund's portfolio. Short-term gains or losses are generated on securities held 12 months or less; long-term gains or losses pertain to securities held for more than 12 months.

Capital gains distribution. Mutual fund's distribution to its shareholders of the profits derived from the sale of stocks or bonds in the fund's portfolio.

Cash contribution. A contribution consisting of cash, paid by check or electronic transfer, made by donors to their donor-advised fund account.

CD (certificate of deposit). Short-term debt instrument issued by banks that usually pays fixed interest in exchange for a deposit of funds. Investors are exposed to the credit risk and should pay attention to the financial standing of the issuing bank.

Closed-end fund. A type of fund that has a fixed number of shares, usually listed on a major stock exchange. Unlike open-end mutual funds, closed-end funds do not stand ready to issue and redeem shares on a continuous basis.

Common stock. Represents ownership in a public corporation. Owners typically are entitled to vote and receive dividends. These securities generally have the most potential for capital appreciation, but their rights are subordinated in the event of a company liquidation or bankruptcy.

Convertible security. Corporate security (usually preferred stock or bond) that is exchangeable for another form of security (usually common stock) at a predetermined price.

Cost basis. The acquisition cost of fund shares including any sales charges, reinvested dividends and distributions used to purchase additional fund shares.

Central Provident Fund (CPF). It was set up in 1955 to provide financial security for workers in their retirement or when they are no longer able to work. Over the years, it has evolved into a comprehensive social-security savings scheme, which not only takes care of a member's retirement, home ownership and healthcare needs, but also provides financial protection to CPF members and their families through its insurance schemes. The CPF Board is the trustee of members'CPF savings.

Cumulative total return. Usually calculated in the same manner as standardized average annual total return, except that these figures represent the total change in value of an investment over the stated periods and do not reflect any sales charges.

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