(1) An asset that can be sold or transferred to another party for money or as settlement of an obligation. (2) A certificate that is transferable by delivery and in the case of a registered certificate has been endorsed and guaranteed.

The value of a mutual fund's holding less any liabilities. The NAV is calculated for most funds after the close of the exchanges and markets each day. It is calculated by taking the closing market value of all securities owned plus other assets such as cash, subtracting all liabilities and, then dividing by the total number of shares outstanding.

One designated to act for another in his or her place. For example a person (e.g.. bank official) or company (e.g.. investment dealer) into whose name securities or other properties are transferred by agreement of the beneficial owner.

A public officer whose function it is to administer oaths, to attest, certify and validate and give credit, by his/her hand as well as an official seal, that certain documents are authentic. Documents may include wills and contracts.

The prospectus, advertisement or other document, which contains the investment and distribution policy and all other information in respect of the Unit Trust, as, required by the Rules and is calculated to invite offers by the public to invest in the Unit Trust.

Commonly referred to as a mutual fund. These funds are in a continuous process of issuing shares/ units on demand and redeeming shares/ units on demand. Hence the term: open-end fund. The shares/ units do not trade on a market. The number of shares/ units outstanding varies each time the net asset valuation calculation is carried out, which is daily for most open-ended funds.

See Face Value.

The combined holdings of more than one cash equivalent security, bond, stock, commodity, or any other assets by an individual investor or institutional investor

Authority given (usually in a legal document) to an individual to act on another individual's behalf in matters concerning his/ her affairs in general or under certain circumstances.

For a mutual fund - the net asset value per share/ unit calculated on a specific day.

Current price per share / Earning per share. This formula shows a company’s earnings versus its share price.
Principal The face value that has been borrowed (amount of a debt security) or invested (amount of deposit), on which interest is earned, that has to be repaid to the investor.

The amount remaining after all costs (direct and indirect) are deducted from the income of a business or from the amount realized on sale.

A legal document in which a corporation or other legal entity offers a new issue of securities to the investing public. The prospectus, which is compiled in accordance with the regulators' requirements, describes in detail the issuer, its business, the securities being offered, the use of the proceeds, management, a set of financial statements etc.

(1) Generally, a person authorized to act or speak or substitute for another. (2) Written permission (or power of attorney) granted by a shareholder to someone else, to represent him/ her at a shareholders' meeting, and vote on his/ her behalf. (3) An alternate term for an attorney.

The act of buying mutual fund units or securities.

An option contract which gives the buyer the right to sell the underlying security to the writer at a fixed price prior to an agreed-upon expiry date. Put options are usually purchased by investors who believe the underlying security may go down.

Means any person who makes Contributions or on whose behalf Contributions are made into the Pension Fund, and held in an identifiable Individual Pension Account managed by the Pension Fund Manager.

The coupon rate (as in bond or debenture) or annual dividend (as in preferred or common share) divided by the purchase price.

The after-inflation interest rate generally approximated by taking the difference between the interest rate and the year over-year percent change in the Consumer Price Index.

Defined as two consecutive quarters of decline in real Gross Domestic Product. It may also be defined by several quarters of virtually zero net growth.

(1) Repayment of a debt security or preferred share prior to or at maturity by an issuer, at a specified price (usually at a premium). (2) Mutual fund units are redeemed at the net asset value, when a unit holder's holdings are sold.

They are responsible for keeping track of investors who own the units of the mutual funds. They may process purchase, switch and redemption orders, issue investor account statements and issue annual tax reporting information.

means the functions with regard to:
a) Maintaining the Register;
b) Receiving application for redemption and transfer/ transmission of Units directly from Holder or legal representatives or through Distributor;
c) Processing requests for issue, redemption, transfer and transmission of Units and requests for recording of pledge or for recording of changes in information/ particulars/ data with regard to the Holders;
d) Issuing Account Statement to Holders;
e) Issuing Certificates including Certificates in lieu of undistributed income to Holders;
f) Dispatching income distribution warrants and allocating Units to Holders on re-investment of dividends.
g) Canceling old Certificates on redemption or replacement.
h) Maintaining record of lien/ pledge/ charge.
i) Keeping record of change of addresses/ other particulars of the Holders.

Mutual funds provide a service that allows unit holders to purchase more units of the fund with the proceeds from interest and dividend income, usually at no additional cost (no sales charge).

A company's profit not paid out in the form of dividends. They are retained by the company to help finance future expansion and form part of shareholder's equity.

The profit earned from an investment.

The potential of loss on an investment due to a number of factors, listed below:
a) Credit Risk - Potential that an investment (specifically fixed-income securities) will go down when assigned a negative rating (downgraded) by a reputable credit rating service.
b) Default Risk - Risk associated with an issuer of a debt instrument that may not have the financial ability to meet regular interest payments or is incapable of repaying the debt at maturity.
c) Equity Investment Risk - Risk resulting from changes in a specific company or industry developments and prospects, as well as changes in interest rates, economic conditions and stock market news.
d) Interest Rate Risk - Risk resulting from increased interest rates in the market place, that the income earned from an original investment will not be worth as much as the going market rates.
e) Liquidity Risk - Inability to sell a security reasonably quickly at the prevailing market price or convert an asset into cash as quickly as possible.
f) Political Risk - Potential for changes in government to impact the value of an investment. It may also include policy changes made by governments.

Means the NBFC Rules 2003, which governs the operation of the mutual funds.

Means any age between sixty and seventy years or such age as may be prescribed in the Rules from time to time, which the Participant selects for retirement, in accordance with the provisions of the Rules.

Means the date on which the retirement of a Participant from the Pension Fund becomes effective.

An individual, firm, corporate or other entity appointed by the Management Company to identify, solicit and assist investors in investing in the scheme.

The sales charge or commission not exceeding 5% of the net asset value, which may be included in the Offer Price of certain classes of Units or deducted from the Net Asset Value in order to determine the Redemption Price of certain classes of Units

The Securities and Exchange Commission of Pakistan, established under section 3 of the Securities and Exchange commission of Pakistan Act, 1997.

Completing a trade between brokers acting as agents or between a salesperson and the client. A trade is settled when the required payment is made for securities purchased or the correct documentation has been delivered and the client receives the proceeds from the sale.

Part of equity ownership in a corporation.

Ownership interest of common and preferred stockholders in a company. That is, it represents the difference between the assets and liabilities of a company.

These funds invest in securities which are shariah compliant.

Sale by an investor of borrowed shares, obtained through a broker. The investor's expectation is that the market price of the security will decline in value and that the shares will be repurchased at a lower price (cover his/ her short position), and thus make a profit.

(1) The difference between the bid and ask price of a security. (2) The difference in yields between two bonds or debentures. (3) The buying and selling of puts or calls on the same underlying security, but with different strike prices and/ or expiration dates.

A securities firm or an employee of such a firm who is licensed to trade securities. The broker does not own the securities that are bought or sold, but acts as an agent for the buyer or seller and charges a commission for the service.