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The 3 Simple Rules of Investing by George Peacock, Carol Fabbri, Kwok L. Tsui, Michael Edesess

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GLOSSARY

401(k) plan A “defined contribution” employee pension plan in which participants contribute a pretax amount (possibly matched—up to a percentage—by the employer) and choose among investment choices offered by the plan.

403(b) plan Similar to a 401(k) plan but offered to employees of educational and nonprofit organizations.

Accredited investor “An accredited investor can be an individual or an institution. An individual accredited investor is one who has a net worth of at least $1 million or has had income of at least $200,000 for each of the last two years (or joint income with a spouse of $300,000).” See www.sec.gov/answers/accred.htm for details.

Active management Investment managers who pick stocks (or bonds in the case of bond funds) ...

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