Financial Glossary - S

Salary - An annual amount of compensation, received by workers from an employer, that is pro-rated on a weekly, biweekly, or monthly payment schedule. Salary income is subject to state and federal government income taxes and Social Security tax (FICA), which are generally deducted from a worker's earnings via payroll withholding.

Sales Charge - The amount charged to purchase mutual fund shares.

Savings account - An account established at a bank or credit union for storing money. Interest is paid on deposited money and withdrawals can be made by visiting a bank teller or using an ATM card, if one is available. Minimum deposit amounts may be required in order to avoid fees.

Secured Debt - A debt that is backed by some type of collateral in order to reduced the risk to the lender. An example is a car loan where the car is used as security (collateral) for the loan.

Securities - A term used to refer to stocks and bonds (e.g., tax-exempt securities) in general.

Share - A unit of ownership in a company (common stock) or mutual fund. The value of a share will vary according to market conditions and other factors.

Simplified Employee Pension - A tax-deferred retirement savings plan for self-employed individuals and small business owners.

Social Security - Federal government program that provides retirement and disability benefits to workers and their dependents. Workers pay for Social Security through payroll taxes. Specific information about Social Security benefits and criteria for eligibility can be found at www.ssa.gov.

Spending Plan - A written plan for spending and saving money.

Stock - A type of investment that represents a unit of ownership of a corporation. This ownership is represented by shares of stock, which are a claim on the corporation's assets and earnings.

Updated:E.J.B.