ABA (American Banking Association) routing number

See defintion under Transit or Routing code.

Age of Majority

See Account Types - Custodial.

Account Status

Depending on the current state of your MyStockFund brokerage account, MSFS will assign a status to your account. You can view your account status from your Member Home page. The account status controls your online account activities in which you can participate. For example, once you open a MyStockFund brokerage account, you may access the Member site, set up your AutoVest Schedule, research stocks, etc. However, you will not be able to engage in MyStockFund transactions such as purchasing or selling stocks until your account and Cash Link are both "Active." You will be notified via email that your account and Cash Link have been activated.

For more information about a specific status, see: Pending, Active, Restricted, or Closed.

Account Types

Custodial - an account set up by an adult for the benefit of a minor. The child becomes the sole owner and has full rights to the account when he/she reaches the age of majority in that state. The age of majority is usually 21, except in the following states where it is currently 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA. Consult the laws in your state for more information.

Joint - an account co-owned by two or more individuals.

Individual - an account owned by one individual. The individual must be of legal age to open an account. Legal age varies by state, but it is typically 21 except in the following states where it is 18: AK, CA, DC, KY, LA, ME, MI, NV, SC, SD, VA.

Corporate - an account set up by a corporation.

Investment Club - an account owned by an investment club that is managed by one authorized agent.

Partnership - an account owned by a partnership with a designated authorized agent for the group.

Trust - a brokerage account set up under legal arrangement of a trust.

Automated Clearing House (ACH) transfer

An electronic funds transfer. MyStockFund uses ACH to fund stock purchases, collect the annual subscription fee, and can use ACH to withdraw funds from your MyStockFund cash account into your checking or savings account. Most financial institutions, credit unions and other financial institutions participate in the ACH network and are therefore able to send funds this way, but it's best to check with your financial institution before authorizing an ACH transaction.

AutoVest Schedule

AutoVest is a tool that helps you build your portfolio over time with regular automatic investments in your favorite securities. You may invest as little as $10.00 (or as much as you’d like) in each security and schedule a “plan purchase” on a weekly or monthly basis. This helps you to dollar cost average your investments while making it simple to diversify. You may edit your AutoVest Schedule at any time to change with your budget and financial objectives. For your convenience, AutoVest purchases are funded automatically through Cash Link! Cash Link will automatically debit your financial institution one day prior of your scheduled investment(s).

Active Status

Your account will be set to an "Active" status once you have completed the application process and your Cash Link has been activated. Registration for Investment Club, Corporate, Partnership and Trust accounts require additional authorization before an account can be activated. You will be notified via email if your account requires additional authorization as well as an email that your Cash Link has been activated.


Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, inventory, a house, a car, or other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock and retained earnings.

Available Cash

"Available Cash" is the term used for available funds that have not yet been committed to any pending purchases or withdrawals. Available cash can be used for One-time Plan Purchases, Real-time purchases or may be withdrawn from your account at any time. All cash in your account will automatically be invested into an insured interest bearing account. Each account will be paid a rate of interest, which may fluctuate daily depending on market conditions. Interest will accrue from the date of deposit to the last full day before the date of withdrawal and is compounded and credited monthly. There is no minimum period that money must remain on deposit and consequently, there is no penalty for withdrawals of your entire balance or any part thereof at any time without notice.

 Backup Withholding

A tax-collection method whereby a percentage of your income (31%) is deducted by the payer and sent to the Internal Revenue Service. You are subject to backup withholding if:

  1. You do not provide your taxpayer identification number in the required manner.
  2. You provide an incorrect taxpayer identification number.
  3. You did not certified, when required, that you were not subject to backup withholding.
  4. The IRS notifies the payer to start withholding because you did not report all of your interest or dividend income. As part of the Registration process, you indicated whether or not you were subject to backup withholdings.


In a securities transaction, the individual or firm authorized to act as your agent. Your broker arranges the transaction, confirming the security, the price and the number of shares to be bought or sold.

Broker Assisted Trade

MyStockFund Securities offers market orders placed via phone. ORDERS MUST BE PLACED DURING MARKET HOURS, MONDAY-FRIDAY, 9:30AM - 4:00PM ET, EXCEPT HOLIDAYS.

Capital Gains/Losses

The difference between what you sold an asset for and what you paid for it. If the difference is positive, you have a capital gain; if it's negative, you have a loss.

Short-term Gain - if you owned the asset for one year or less, any gain (or loss) is classified as a short-term gain or loss.

Long-term Gain - if you owned the asset for more than one year, any gain (or loss) is classified as a long-term gain or loss.

Cash (on deposit)

Any cash on deposit in your account will automatically be invested into an insured interest bearing account. Each account will be paid a rate of interest, which may fluctuate daily depending on market conditions. Interest will accrue from the date of deposit to the last full day before the date of withdrawal and is compounded and credited monthly. There is no minimum period that money must remain on deposit and consequently, there is no penalty for withdrawals of your entire balance or any part thereof at any time without notice.

Cash Link

Cash Link is a service feature that electronically links your savings or checking account directly to your MyStockFund account via ACH (Automated Clearing House) transfer. An active Cash Link is needed to activate your AutoVest Schedule and helps you to take full advantage of our service. In addition to AutoVest purchases, you can make convenient electronic Instant Deposits, or set up automatic Recurring Deposits for future real-time market orders or One-time Plan Purchases. You may create or edit your Cash Link at any time through Personal Account Information. It may take up to six business days to activate a new Cash Link.

Clearing Agent

In a securities transaction, the firm that handles the actual transfer of funds and securities. Legent Clearing Corp. performs this role for MyStockFund Securities, Inc.

Closed Status

For your account to be in a "Closed" status, MyStockFund Securities must receive a signed Close Account Form from the account holder(s). You will be able to access your account until all cash and/or securities in your account have been liquidated or transferred to another financial institution.

Consumer Price Index (CPI)

An indicator of whether individuals are paying more or less for the goods and services they need to maintain their homes. The CPI is one measure of inflationary pressures.

Committed Cash

Committed Cash is the term used for funds that have been committed from Available Cash for pending One-time Plan Purchases or a withdrawal that hasn’t been processed yet.

Cost Basis

The original cost of an asset, which is usually the price you paid for it. When you sell securities, you need to determine the original cost so you can calculate any capital gain or loss.


The most common from of business organization that is chartered by a state and given many legal rights as a separate entity from its owners.

Corporate Action

Changes in companies that affect their listings on stock exchanges. Examples of corporate actions are new issues, defunct issues, mergers and name changes.


A security's identifying number. The nine digits are assigned by Committee on Uniform Security Identification Procedures (CUSIP). The first six digits identify the issuer, such as a company, while the last three digits reveal exactly what kind of security it is, such as a particular kind of stock or bond. It's good to have CUSIP numbers handy when you're transferring shares of stock or if you've lost your certificates.

Credit Union

Non-profit, member-owned, financial cooperatives operated entirely by and for members. When you deposit money in a credit union, you become a member of the union because your deposit is considered partial ownership in the organization.

Depository Trust Company

A central repository through which members electronically transfer stock certificates. The DTC is a member of the Federal Reserve System and is owned by most of the brokerage houses on Wall Street and the NYSE.

Discount Rate

In calculations of a company's intrinsic value, the term "discount rate" refers to the gain you'd need to realize to make your investment in a given stock worth the associated risk ("opportunity costs").


Investing in many different securities and asset classes as a way of reducing total portfolio risk. When you have a diversified portfolio, gains or losses from one security may be offset by the performance of other securities


For stock investors, a distribution of company profits. Not all companies declare dividends. Many instead reinvest profits to grow the business.

Dividend Per Share

The amount of the dividend stated on a per-share basis. If a company declares a dividend per share of $0.05 and you own 100 shares, you'll receive a $5 dividend distribution.

Dividend Reinvestment Plan (DRIP)

Buying more shares in a company by automatically reinvesting any dividends.

Dividend Yield

Dividends earned expressed as a percent of the stocks price. To calculate a stock's dividend yield, divide the amount of the dividend earned by the stock's purchase price.

Dollar-Based Purchases

Ability to buy stock for a defined dollar amount (e.g., $10 or $15) instead of based on the number of shares (e.g., 10 shares of IBM).

Dollar Cost Averaging

A method of buying shares at regular intervals regardless of the stock's price. Since you're buying at a range of prices, you effectively average your cost basis.


Dormant - Status given to a security previously added to your AutoVest Schedule through a one time or Real-time purchase. You may edit or delete this security at any time.

Dow Jones Industrial Average (DJIA)

A stock performance benchmark comprised of 30 large, primarily industrial companies that are widely owned and actively traded.

Earnings Per Share

Company profits after deducting for taxes and certain other payments stated on a per-share basis. For example, a company with annual earnings of $50 million and $100 million outstanding shares reports earnings per share of $0.50.

Electronic Funds Transfer

See "Automated Clearing House (ACH) Transfer"


The electronic transfer of a signature.

Equity Ownership

When you own part of something, you have equity in it. Stockholders, unlike bondholders, have an ownership interest in the company. So, for example, when you own 50 shares of Company XYZ's stock, that is your equity in the corporation. Accordingly, stocks are sometimes referred to as equity securities or equities.

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) represent shares of ownership in either fund, unit investment trusts, or depository receipts that hold portfolios of common stocks which closely track the performance and dividend yield of specific index, either broad market, sector or international. ETFs give investors the opportunity to buy or sell an entire portfolio of stocks in a single security, as easily as buying or selling a share of stock. They offer a wide range of investment opportunities. While similar to an index mutual fund, ETFs differ from mutual funds in significant ways. Unlike Index mutual funds, ETFs are priced and can be bought and sold throughout the trading day.


Federal Deposit Insurance Corporation. A federal agency that insures deposits in member financial institutions up to $100,000. Cash and Money Market balances in your MyStockFund brokerage account are insured by the FDIC.

Federal Funds Rate

The rate financial institutions charge each other on overnight loans, typically to meet reserve requirements.

Federal Reserve

The U.S. central bank. The Federal Reserve sets monetary policy, oversees financial institutions and seeks to maintain financial stability.

Fractional Share

A fractional share of a security is a partial share. MyStockFund allows members to purchase securities in specific dollar amounts which usually results in the purchase of fractional shares. One-time Plan Purchases and AutoVest purchases feature fractional share investing. Real-time market orders are placed in whole shares only.

Gross Domestic Product (GDP)

A measure of the U.S. economy's total output of goods and services.

Individual Retirement Account (IRA)

A type of investment account designed to stimulate personal retirement savings by offering tax benefits.

Initial Public Offering (IPO)

A company's first public issuance of stock.


Compensation for the use or forbearance of money.

Investment Club

An organization that is formed when a group of friends, neighbors, business associates, or others pool their money to invest in stock or other securities. The club may or may not have a written agreement, a charter, or bylaws. Usually the group operates informally with members pledging to pay a regular amount into the club monthly. Some clubs have a committee that gathers information on securities, selects the most promising securities, and recommends that the club invest in them. Other clubs rotate these responsibilities among all their members. Most clubs require all members to vote for or against all investments, sales, trades, and other transactions.

Investment Interest

The interest you paid or accrued on money you borrowed that is allocable to property held for investment

IRS 1099-Div

Lists the amount of interest income earned for the year. MyStockFund is required to report this amount to the IRS. You'll receive a copy of this form early in the year. You'll want to refer to it when you prepare your tax return. Interest income is generally taxable to non-retirement account investors.


iShares are a family of ETFs. Like stocks they are liquid, and are like index funds in that they offer the benefits of diversification, market tracking and relatively low expenses. Each share represents a portfolio of securities designed to closely track one specific market index.

Legal Change in Ownership

A per stock transfer in ownership of a security to someone else. Necessary when the legal status of the brokerage account or account holder(s) change.

Legent Clearing LLC

Legent has a strong history in the securities clearing business. Located in Omaha, NE, their experienced personnel provide securities trade execution, clearing and settlement, maintain records, and assist MSFS with any other clearing function. It's a member of the New York Stock Exchange (NYSE) and other principal exchanges, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corporation.


The conversion of a security to cash, typically through the sale of that security. Also called “sell-out.”

Market Order

A market order is an order to buy or sell a stock immediately at the best available current price. A market order guarantees execution.

Market Capitalization

A measure of a company's total stock market value. Calculated by multiplying the company's share price by the number of shares outstanding.


An online investment service that allows investors to make incremental purchases in stocks over time, in an affordable and convenient way.


Financial Industry Regulatory Authority. A self regulatory, nonprofit securities industry organization responsible for the operation and regulation of the NASDAQ stock market and the American Stock Exchange.

NASDAQ Composite

A stock performance index that represents the performance of all stocks traded on the NASDAQ over-the-counter market, currently more than 5,000 issues.


National Credit Union Share Insurance Fund. Deposits in credit unions are insured to $100,000 by NCUSIF, which is administered by the National Credit Union Administration (NCUA). Like the FDIC Bank Insurance Fund, the NCUSIF is backed by the full faith and credit of the USA. All funding for the NCUSIF is made by insured credit unions.

Non-Sufficient Funds (NSF)

A state in which the funds in an account are not sufficient to fulfill the obligation of the account holder.


You may inactivate recurring purchases to a security indefinitely by changing the frequency to "Paused" in your AutoVest Schedule. You may re-activate recurring purchases by choosing a monthly or weekly frequency through the edit process.


An unincorporated organization with two or more members that is formed for federal tax purposes so that its members carry on a trade, business, financial operation, or venture and divide its profits.

Pending Status

Signifies that MyStockFund Securities requires additional information before we can activate your account. This may be due to an incomplete registration (such as a missing signature), or something specific to your account application. You will receive correspondence from MyStockFund Securities explaining exactly what information we need to receive prior to activating your account. For more information, see account status.

Plan Purchase

A Plan Purchase is a scheduled buy order placed through AutoVest or the One-time Plan purchase process. MyStockFund aggregates our members’ fractional share or dollar based orders and goes to market once per week during our weekly Plan Purchase cycle (every Thursday). By placing buy orders in this manner, MyStockFund is able to pass the savings off to you. Plan Purchases are priced according to your respective Investing Plan. Investing in this manner is a great way to keep your commission costs down while making it simple to dollar-cost average and diversify over time.

Price/Earnings Ratio (P/E)

Stock price divided by earnings per share. A stock's P/E is an indication of how much investors are willing to pay for the stock's earnings potential.

Real Time

Notification or action that is performed immediately, with no delay.

Restricted Status

If your account status is "Restricted," MyStockFund Securities has found it necessary to interrupt your use of the service. Please contact member care as soon as possible for additional information. While in this status, you will not be able to utilize the MyStockFund service. For more information, see Account Status.

Russell Index

Various stock performance indices calculated by the Frank Russell Company. The Russell 3000 is comprised of the 3,000 largest U.S. companies. The Russell 1000 represents the 1,000 largest of these and the Russell 2000 includes the smallest 2,000 of these.

S&P 500

A stock performance index that represents the performance of 500 stocks selected the Standard & Poor's Corporation. Index holdings are organized under four main sector headings: industrials, utilities, financial and transportation.


In investments, an asset such as a stock or bond.

Securities and Exchange Commission (SEC)

The U.S. government agency charged with protecting investors. On behalf of investors, the agency requires securities issuers to provide full and fair disclosure. The agency also investigates allegations of fraud.

SEC Filings

10-K — a company's annual report. Includes business and management information plus full, audited balance sheet, income and cash flow statements.

10-Q — a company's quarterly report. Includes unaudited financials.


To transfer ownership of a security in exchange for money.

Settlement Date

Date by which an executed order must be settled, either by a buyer paying for the security with cash, or by a seller delivering the securities and receiving the proceeds of the sale. The settlement date for securities is three business days after a trade is executed.


Certificate representing one unit of ownership in a corporation.


Securities Investor Protection Corporation. SIPC provides members with protection of the assets in their account up to $500,000 of coverage of which up to $100,000 may be cash. While the SIPC does not protect against losses from declining market value of investments, the account protection does apply when an SIPC member firm fails financially and is unable to meet obligations to securities members. MyStockFund Securities is an SIPC member, and therefore all MyStockFund accounts are protected by the SIPC.

Source Account

The account that you have specified to be the source of the funds that will be transferred into your MyStockFund account to pay fees and/or fund the purchase of securities. Also see Automated Clearing House (ACH) and electronic funds transfer (EFT).


An instrument or legal right signifying equity, or an ownership position, in a corporation

Stock Certificate

A paper that certifies your stock ownership. It lists the name of the corporation, the number of shares and the stated value. If you elect to receive stock certificates, your broker cannot trade those shares on your behalf until you return them. For this reason, most stockholders elect not to receive stock certificates.

Stock Exchange

A marketplace where securities are traded.

Stock Index(-ices)

Dow Jones Industrials Average — see Dow Jones Industrials Average above.

NASDAQ Composite — see NASDAQ Composite above.

Russell — see Russell Index above.

Standard & Poor's 500 — see S&P 500 above.

Substitute Form W-9

An IRS form applicable to interest or dividend accounts on which the account holder certifies his/her Tax Identification Number (Social Security Number) and specifies whether he/she is subject to backup withholding.

Suspended Status

If your Cash Link is “Suspended”, MyStockFund Securities is awaiting approval that the financial institution information you have submitted to perform electronic funds transfer (activate the Cash Link capability) is valid. From the time of submission of the information; either during registration or when you made a change; the approval takes at least 6 calendar days.


See ticker symbol

T + 3

The third business day following the execution of the trade of a security.

Ticker Symbol

A stock's trading symbol. For example, Coca-Cola trades as KO.

Total Return

The performance of an asset over a specified period expressed as a percent. It includes price change plus any dividends or interest paid.


Moving assets (including securities) from one investment vehicle or custodian to another.

Transit or Routing Code (ABA)

A nine character number found at the bottom of your checks that helps track and control your funds as they get processed through the banking system.

Transfer of Ownership

Giving assets (including securities) to another individual or organization. Transfers are typically part of an individual's estate planning, tax planning or charitable giving program.


A legal arrangement in which an individual who gives fiduciary control of property to a person or institution for the benefit of beneficiaries.

Uniform Gift to Minors Act (UGMA)

Custodial accounts that are established for a minor. If a parent manages the account, the income will be taxed to parent. Investments are usually restricted by state to life insurance, and certificates of deposit. Gifts may be given to a trust under the $10,000 per person per year exclusion - even to the use of life insurance.

Uniform Transfer to Minors Act (UTMA)

Essentially the same as UGMA except that the UTMA allows a greater use of various investments- mutual funds, partnerships, bonds, stocks, etc. The UTMA may receive assets from a testamentary transfer and get a full step up in basis upon death.

Unrealized Gain/Loss

A gain (or loss) which has occurred but has not been realized through a transaction, such as a stock which has risen in value ( or fallen in value) but is still being held. Calculated by subtracting the valuation of a holding in your account from the average purchase price.


Calculated by multiplying the number of a company's shares held in your account by the market value or price per share.