The Retirement Corporation of America


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Balanced Mutual Fund

A mutual fund whose objective is a balance of stocks and bonds. Such funds tend to be less volatile than stock-only funds.

Bear Market
When the stock market appears to be declining overall, it is said to be a bear market.

A person named in a life insurance policy, annuity, will, trust, or other agreement to receive a financial benefit upon the death of the owner. A beneficiary can be an individual, company, organization, and so on.

Blue Chip Stock
The common stock of a company with a long history of profitability and consistent dividend payments.

A bond is evidence of a loan that an investor makes to a corporation or a government body in exchange for regular interest payments and the return of the principal sum at a future date. Bonds are usually issued in multiples of $1,000. Companies issue corporate bonds to raise money for capital expenditures, operations, and acquisitions. Unlike stockholders, bondholders don't receive ownership rights in the corporation.

Bond Rating
An evaluation, by a rating agency, of the quality and safety of a bond. The rating is based on the issuer's financial condition and ability to meet scheduled interest and principal repayments. Typically an AAA rating is best and a D is the worst.

Bull Market
When the stock market appears to be advancing overall, it is said to be a bull market.