Home > Glossary > Blend Fund

Meaning / Definition of

Blend Fund

Categories: Mutual Funds, Stocks, Bonds and Treasuries,

A mutual fund whose assets are composed of a combination of stocks, bonds, and money market securities, rather than just one or two of these asset classes. This enables investors to diversify their holdings with a single fund. Since blend funds vary considerably in composition is difficult to make generalizations about their performance or risk level, but usually they are somewhat less risky than stock mutual funds and somewhat more risky than bond funds or money market mutual funds. also called hybrid funds.

Featured term of the day

Definition / Meaning of

Circuit Breaker

Categories: Investing and Trading,

After the stock market crash of 1987, stock and commodities exchanges established a system of trigger-point rules known as circuit breakers. They temporarily restrict trading in stocks, stock options, and stock index futures when prices fall too far, too fast.Currently, trading on the new york stock exchange (NYSE) is halted when the dow jones industrial average (DJIA) drops 10% any time before 2:30 p.m., sooner if the drop is 20%. But trading could resume, depending on the time of day the loss occurs. However, if the DJIA drops 30% at any point in the day, trading ends for the day. The actual number of points the DJIA would need to drop to hit the trigger is set four times a year, at the end of each quarter, based on the average value of the DJIA in the previous month.The only time the circuit breakers have been triggered was on October 27, 1997, when the DJIA fell 554 points, or 7.2%, and the shut-down level was lower. In fact, the DJIA has dropped as much as 10% in a single day only three times in its history.

Most popular terms

1. Americans With Disabilities Act (ADA) Of 1990
2. Cash Forward Contract
3. Community Reinvestment Act Of 1977
4. Floating Excess Policy
5. Charitable Remainder Trust
6. Target Date Fund
7. National Association Of Securities Dealers Automated Quotations System
8. Health Savings Account (HSA)
9. Weighted Stock Index
10. Tracking Stock

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital