Investment Terms and Concepts

Mutual Fund Fees – Broward County, Florida FINRA Arbitration and Litigation Attorney

Published on: July 31, 2012 | By Russell L. Forkey, P.A.

Understanding fees and costs associated with mutual funds:

What are the fees and costs associated with purchasing, owning and selling mutual funds. The purpose of this post is to provide the reader with general comments on this subject. Please be advised that this information is being provided for educational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning the contents of this post, you should consult with a qualified professional.

As with any business, running a mutual fund involves costs. Funds pass along these costs to investors by charging fees and expenses. Fees and expenses vary from fund to fund. A fund with high costs must perform better than a low-cost fund to generate the same returns for you.

How to Buy and Sell Mutual Funds – Palm Beach County, Florida FINRA Arbitration and Litigation Attorney

Published on: July 31, 2012 | By Russell L. Forkey, P.A.

How to buy and sell mutual funds

This post is designed to provide the reader with information relative to the methods that an investor might pick to buy and sell mutual fund shares. This information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning the contents of this post, you should contact a qualified professional.

Investors buy mutual fund shares from the fund itself or through a broker for the fund, rather than from other investors. The price that investors pay for the mutual fund is the fund’s per share net asset value plus any fees charged at the time of purchase, such as sales loads.

Benefits and Risks of Mutual Funds – Florida FINRA Arbitration and Litigation Attorney

Published on: July 31, 2012 | By Russell L. Forkey, P.A.

What are some of the benefits and risks of mutual funds?

The purpose of this post is to provide the reader with a general description of certain risks and rewards associated with investing in mutual funds. Please keep in mind that this information is being provided for educational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If you have any questions concerning this post, you should seek qualified professional assistance.

Mutual funds offer professional investment management and potential diversification. They also offer three ways to earn money:

Mutual Fund Types – South Florida Broker/Dealer Mismanagement and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: July 29, 2012 | By Russell L. Forkey, P.A.

Types of mutual funds.

Generally, there are a few basic types of mutual funds that are available for the members of the general public to invest in. The purpose of this post is to provide general information relative thereto. This post is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions relative to this post, you should contact a qualified professional

Generally, mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds. Each type has different features, risks, and rewards. The specific description of each will be contained in the original prospectus for the fund and any subsequent supplements. Please make sure that you refer to these documents prior to making any investment in any type of mutual fund.

Mutual Funds – Why Do People Buy Them? Florida Broker Misconduct FINRA Arbitration Attorney

Published on: July 29, 2012 | By Russell L. Forkey, P.A.

Mutual funds are a common vehicle in today’s investment world. Here are a few reason why People buy them.

However, please keep in mind that this information is being provided for educational purposes only. Therefore, it is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions relative to this post, you should consult with a qualified professional.

Mutual funds have and continue to be a popular choice among investors because they generally offer the following features:

Broker/Dealer Securities Fraud, Mismanagement, and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: July 22, 2012 | By Russell L. Forkey, P.A.

Bid and Asked and Bid-Asked Spread:

The purpose of this post is to provide the reader with a general description of the terms “bid and asked” and “bid and asked spread.” This post is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, the information provided herein should not be relied upon as legal or investment advice. If you have any questions concerning the contents hereof, you should contact a qualified professional.

The asked price is the price at which a security or commodity is offered for sale on an exchange or in the over-the-counter market. Generally, it is the lowest round lot price at which a dealer will sell. As it relates to mutual funds, it is the per-share price at which a mutual fund shares are offered to the public, usually the net asset value per share plus a sales charge, if any.

Firm Commitment – Best Effort Offerings: South Florida Securities and Investment Fraud and Mismanagement Attorney

Published on: July 22, 2012 | By Russell L. Forkey, P.A.

Firm Commitment – Best Effort Offerings:

The purpose of this post is to provide the reader with a general understanding of what the difference is between a firm commitment and a best efforts offering of securities to the public. This information is being provided for educational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post, you should contact a qualified professional.

A firm commitment is an agreement between and investment banker and an issuer of securities to be offered to the public. The underwriters, as the investment bankers are called in this situation, make their profit on the difference between the purchase price – determined through either competitive bidding or negotiation – and the public offering price. A firm commitment underwriting is distinguished from a conditional arrangement for distribution of new securities, such as a best efforts or standby commitment. The word underwriting is frequently misused with respect to these conditional arrangements.

Financial Planner Fraud, Negligence and Breach of Fiduciary Litigation and FINRA Arbitration Attorney

Published on: July 22, 2012 | By Russell L. Forkey, P.A.

Financial Planner:

A financial planner is a professional who compiles and analyzes personal financial data and prepares a a proposed program to meet the financial needs and objectives of his client. The purpose of this post is to provide the reader with a general description of the type of individuals that may provide financial planning and how they are compensated. This information is being provided for educational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post, you should contacted a qualified professional.

Conceptually, a financial planner can be an accountant, banker, lawyer, insurance agent, real estate agent or securities broker. They should have knowledge and experience in various areas such as estate planning, retirement planning, taxes, insurance, family budgeting, debt management and investments. However, in evaluating the the background of the professional that you are considering, don’t lose site of your goal. Don’t seek or take advice from someone that is not qualified or experienced in the area that you are seeking advice. For example, what does a banker know about a will or trust? What does a lawyer know about investments?

Broker – Dealer Recommendations – Boca Raton, Florida Broker Misconduct, Negligence and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: July 1, 2012 | By Russell L. Forkey, P.A.

Formal Broker/Dealer Recommendations:

How does your account executive decide what securities to recommend to you? What factors does your account executive take into consideration in making buy, hold or sell recommendations to you? These are simple questions. However, the answer could have a significant impact on the profitability of your account.

There are two basic methods that can be used. In the extreme, the recommendations can either be generated by an account executive that is schooled in some type of analytical discipline or the account executive makes his selection from formal research generated by his or her firm. In recent years, we have seen a migration toward firm generated research. Consequently, this post focuses on the latter. Please keep in mind that this information is being provided for education purposes only. Thus, it is not designed to be complete in all material respects. It should not be relied upon as providing legal or investment advice. If you have any questions concerning this post, you should contact a qualified professional.

Basic Types of Stock Options – Broker Dealer and Investment Advisor Negligence and Misconduct FINRA Arbitration and Litigation Attorney

Published on: June 30, 2012 | By Russell L. Forkey, P.A.

Basic Types of Options:

July, 2012:

There are varied terms and concepts that relate to option trading activity. Here are a few. However, please keep in mind that the purpose of this post is to provide the reader with general information concerning this information. Remember that the information provided herein is not designed to be complete in all material respects and does not identify all option related terms that apply to option trading activity. Consequently, if you have any questions concerning its content, you should contact a qualified professional.