Call date. Date on which a bond may be redeemed before maturity.

Capital (or principal). Initial amount of money invested, excluding any subsequent earnings.

Capital appreciation. Increase in the value of an asset such as a stock, bond, commodity or real estate.

Capital gain distribution. A distribution to shareholders of net capital gain realized by a fund from the sale of fund securities. Distribution amounts are reported to shareholders on Form 1099-DIV.

Cash contribution. A contribution consisting of cash, paid by check or electronic transfer, made by donors to their donor-advised fund account.

CD (certificate of deposit). Short-term debt instrument issued by banks that usually pays fixed interest. Unlike mutual funds, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $100,000.

Charitable beneficiary. Charitable organization identified by the donor to receive either all the remaining assets of the donor-advised fund account or 5% of the account annually upon the death of all the original donors.

Charitable organization. An institution established for the public good or to help the needy. Most charitable organizations are considered exempt organizations by the Internal Revenue Service.

Closed-end fund. A type of fund that has a fixed number of shares, usually listed on a major stock exchange. Unlike open-end mutual funds, closed-end funds do not stand ready to issue and redeem shares on a continuous basis.

Common stock. Represents ownership in a public corporation. Owners typically are entitled to vote and receive dividends. These securities generally have the most potential for capital appreciation, but their rights are subordinated in the event of a company liquidation or bankruptcy.

Convertible security. Corporate security (usually preferred stock or bond) that is exchangeable for another form of security (usually common stock) at a predetermined price.

Corporate dividends received deduction (DRD). A federal deduction taken by corporate shareholders for 70% of the dividends they receive from an unrelated domestic corporation. The percentage of ordinary income dividends qualifying for the corporate DRD can be found in the Tax Designation section of your fund's annual report and on the Tax Information page for your fund in the online Tax Center.

Cost basis. The acquisition cost of fund shares, including any sales charges, reinvested dividends, and distributions used to purchase additional fund shares. Your cost basis may be affected by wash sales, if any.

Cost basis statement (CBS). An annual statement issued by Franklin Templeton that reports cost basis and capital gain or loss on fund shares sold or exchanged during the tax year using the average basis-single category method.

Cumulative total return. Usually calculated in the same manner as standardized average annual total return, except these figures, which represent the total change in value of an investment over the stated periods, generally do not reflect any sales charges.