Mutual fundA mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in the UK. Mutual funds are often classified by their principal investments: money market funds, bond or fixed income funds, stock or equity funds, or hybrid funds.
Money market fundA money market fund (also called a money market mutual fund) is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of dividends. Although they are not insured against loss, actual losses have been quite rare in practice.
Closed-end fundA closed-end fund is an investment vehicle fund that raises capital by issuing a fixed number of shares at its inception, and then invests that capital in financial assets such as stocks and bonds. After inception it is closed to new capital, although fund managers sometimes employ leverage. Investors can buy and sell the existing shares in secondary markets. In the United States, closed-end funds sold publicly must be registered under both the Securities Act of 1933 and the Investment Company Act of 1940.
VotingVoting is a method by which a group, such as a meeting or an electorate, convenes together for the purpose of making a collective decision or expressing an opinion usually following discussions, debates or election campaigns. Democracies elect holders of high office by voting. Residents of a jurisdiction represented by an elected official are called "constituents", and the constituents who choose to cast a ballot for their chosen candidate are called "voters.
Fund of fundsA "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.
Single non-transferable voteSingle non-transferable vote or SNTV is an electoral system used to elect multiple winners. It is a generalization of first-past-the-post, applied to multi-member districts with each voter casting just one vote. Unlike FPTP, which is a single-winner system, in SNTV multiple winners are elected, typically in electoral districts; additionally, unlike FPTP, SNTV produces mixed representation and makes it unlikely for a single party to take all the seats in a city or a set area, which can happen under FPTP.
Instant-runoff votingInstant-runoff voting (IRV) is an electoral system that uses ranked voting. Its purpose is to elect the majority choice in single-member districts in which there are more than two candidates and thus help ensure majority rule. It is a single-winner version of single transferable voting. Formerly the term "instant-runoff voting" was used for what many people now call contingent voting or supplementary vote.
Compulsory votingCompulsory voting, also called universal civic duty voting or mandatory voting, is the requirement that registered voters participate in an election. In practice, one only needs to check-in at a polling place, submit a blank ballot, or provide an excused reason, such as disability, illness, age, travel, a natural disaster, or religious objections. 21 countries, including 11 in Latin America, had compulsory voting laws as of January 2023, with the countries enforcing their laws having much higher turnout (high 80's vs.
Ranked votingThe term ranked voting, also known as preferential voting or ranked choice voting, pertains to any voting system where voters use a rank to order candidates or options—in a sequence from first, second, third, and onwards—on their ballots. Ranked voting systems vary based on the ballot marking process, how preferences are tabulated and counted, the number of seats available for election, and whether voters are allowed to rank candidates equally.
Contingent voteThe contingent vote is an electoral system used to elect a single representative in which a candidate requires a majority of votes to win. It is a variation of instant-runoff voting (IRV). Under the contingent vote, the voter ranks the candidates in order of preference, and the first preference votes are counted. If no candidate has a majority (more than half the votes cast), then all but the two leading candidates are eliminated and the votes received by the eliminated candidates are distributed among the two remaining candidates according to voters' preferences.
Single transferable voteThe single transferable vote (STV) is a multi-winner electoral system in which each voter casts a single vote in the form of a ranked-choice ballot. Voters have the option to rank candidates, and their vote may be transferred according to alternate preferences if their preferred candidate is eliminated or elected with surplus votes, so that their vote is used to elect someone they prefer over others in the running. STV aims to approach proportional representation based on votes cast in the district where it is used, so that each vote is worth about the same as another.
Spoilt voteIn voting, a ballot is considered spoilt, spoiled, void, null, informal, invalid or stray if a law declares or an election authority determines that it is invalid and thus not included in the vote count. This may occur accidentally or deliberately. The total number of spoilt votes in a United States election has been called the residual vote. In Australia, such votes are generally referred to as informal votes, and in Canada they are referred to as rejected votes. In some jurisdictions spoilt votes are counted and reported.
Index fundAn index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can replicate the performance ("track") of a specified basket of underlying investments. While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as "reluctant regulators" when determining which companies are suitable for an index.
One man, one vote"One man, one vote", or "one person, one vote", expresses the principle of equal representation in voting. This slogan is used by advocates of democracy and political equality, especially with regard to electoral reforms like universal suffrage and proportional representation. The violation of equal representation in the various systems of proportional representation can be measured with the Loosemore–Hanby index, the Gallagher index, or the amount of wasted vote.
Exchange-traded fundAn exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, futures contracts, and/or commodities such as gold bars. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. Many ETFs provide some level of diversification compared to owning an individual stock.
Cardinal votingCardinal voting refers to any electoral system which allows the voter to give each candidate an independent evaluation, typically a rating or grade. These are also referred to as "rated" (ratings ballot), "evaluative", "graded", or "absolute" voting systems. Cardinal methods (based on cardinal utility) and ordinal methods (based on ordinal utility) are two main categories of modern voting systems, along with plurality voting. There are several voting systems that allow independent ratings of each candidate.
Proxy votingProxy voting is a form of voting whereby a member of a decision-making body may delegate their voting power to a representative, to enable a vote in absence. The representative may be another member of the same body, or external. A person so designated is called a "proxy" and the person designating them is called a "principal". Proxy appointments can be used to form a voting bloc that can exercise greater influence in deliberations or negotiations.
Score votingScore voting or range voting is an electoral system for single-seat elections, in which voters give each candidate a score, the scores are added (or averaged), and the candidate with the highest total is elected. It has been described by various other names including evaluative voting, utilitarian voting, interval measure voting, the point system, ratings summation, 0-99 voting, average voting and utility voting. It is a type of cardinal voting electoral system, and aims to implement the utilitarian social choice rule.
Two-round systemThe two-round system (TRS), also known as runoff voting, second ballot, or ballotage, is a voting method used to elect a single candidate, where voters cast a single vote for their preferred candidate. It generally ensures a majoritarian result, not a simple-plurality result as under first past the post. Under the two-round election system, the election process usually proceeds to a second round only if in the first round no candidate received a simple majority (more than 50%) of votes cast, or some other lower prescribed percentage.
Block votingBlock voting or bloc voting refers to electoral systems in which multiple candidates are elected at once and a group (voting bloc) of voters can force the system to elect only their preferred candidates. Block voting may be used at large (in a single district with multiple winners) or in several multi-member districts. Most types of block voting fall under the multiple non-transferable vote type of system; these terms are sometimes used synonymously.
