Investor Glossary - BondsInsightful stock market charts - Click here

 # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z     
Bonds
Home » Bonds
accrued interest
Accrued interest is the interest that is due on a bond since its last interest payment was made. A  more...
http://www.investorglossary.com/accrued-interest.htm

AMEX
AMEX is the American Stock Exchange. AMEX is sometimes called the Curb, a name that refers to its roots  more...
http://www.investorglossary.com/amex.htm

asset-backed security
An asset-backed security (ABS) is a bond backed by a pool of financial assets which may include credit card payments,  more...
http://www.investorglossary.com/asset-backed-security.htm

balanced fund
A balanced fund is a mutual fund that invests in stocks, bonds, and money market investments (cash). The proportion of  more...
http://www.investorglossary.com/balanced-fund.htm

bellwether
A bellwether stock is a stock that is generally viewed an an indicator of overall market or sector direction. IBM,  more...
http://www.investorglossary.com/bellwether.htm

benchmark interest rate
The benchmark interest rate is the lowest interest rate that an investor will accept for a non-Treasury investment. The  more...
http://www.investorglossary.com/benchmark-interest-rate.htm

bid
In practical terms, the bid is the available price at which an investor can sell shares of stock. The ask  more...
http://www.investorglossary.com/bid.htm

bid/ask spread
The bid/ask spread is the difference between the price sellers are asking for and the price that buyers are willing  more...
http://www.investorglossary.com/bid-ask-spread.htm

bonds
A bond is a financial instrument that is purchased by an investor (bondholder) and entitles the bondholder to receive payment  more...
http://www.investorglossary.com/bonds.htm

call
A call is a type of option contract. A call option gives the call owner the right (but not  more...
http://www.investorglossary.com/call.htm

call price
The call price is the price at which an issuer of a security can redeem that security. The call  more...
http://www.investorglossary.com/call-price.htm

capitalization
The market capitalization (market cap) of a company is the stock price multiplied by the number of shares outstanding. Capitalization  more...
http://www.investorglossary.com/capitalization.htm

cash equivalents
Cash equivalents are investments that are so liquid and so safe that they are nearly the same as cash. Statement  more...
http://www.investorglossary.com/cash-equivalents.htm

cash reserves
A company’s cash reserves are the funds available to meet its needs for cash, especially unanticipated needs. What level  more...
http://www.investorglossary.com/cash-reserves.htm

commercial paper
Commercial paper is a debt instrument issued by well-established companies to meet short-term financing needs. Commercial paper calls for the  more...
http://www.investorglossary.com/commercial-paper.htm

convertible bond
A convertible bond is a debt instrument that holders can convert into a fixed number of shares at a specified  more...
http://www.investorglossary.com/convertible-bond.htm

current market value
The current market value of a stock is its most recent trade. Since the current market value of a stock  more...
http://www.investorglossary.com/current-market-value.htm

current yield
Current yield is equal to a bond’s annual interest payment divided by its current market price. A bond with  more...
http://www.investorglossary.com/current-yield.htm

CUSIP
CUSIP is an abbreviation for Committee on Uniform Securities Identification Procedures of the American Bankers Association. CUSIP numbers are  more...
http://www.investorglossary.com/cusip.htm

debt
In business, a debt is an obligation of one party to pay another, usually as repayment for money borrowed.  more...
http://www.investorglossary.com/debt.htm

debt capital
Debt capital is funds supplied by lenders that is part of a firm's capital structure. Debt capital usually refers to  more...
http://www.investorglossary.com/debt-capital.htm

debt financing
Debt financing refers to the borrowing of funds in order to finance a purchase, acquisition or expansion. Debt financing  more...
http://www.investorglossary.com/debt-financing.htm

debt instrument
A debt instrument is a contractural or written assurance to repay a debt. A debt instrument can be a  more...
http://www.investorglossary.com/debt-instrument.htm

debt limit
A debt limit is the maximum amount of debt which a government is allowed take on. A governmental debt  more...
http://www.investorglossary.com/debt-limit.htm

debt market
The debt market is the market for trading debt securities. The debt market thus involves corporate bonds, government bonds, municipal  more...
http://www.investorglossary.com/debt-market.htm

debt/equity ratio
The debt/equity ratio is a capitalization ratio. The debt/equity ratio equals the sum of company’s bonds plus preferred stock  more...
http://www.investorglossary.com/debt-equity-ratio.htm

debtholder
A debtholder is the investor who holds a debt instrument, most commonly a bond. With bonds, the terms bondholder  more...
http://www.investorglossary.com/debtholder.htm

debtor
A debtor is a person or entity that is owes money to another person or entity (the creditor). A  more...
http://www.investorglossary.com/debtor.htm

denomination
The word denomination has three distinct but closely related uses in a financial context. First, in a given currency,  more...
http://www.investorglossary.com/denomination.htm

derivative
A derivative, or derivative security, is an asset whose price is based on the value of an underlying asset.  more...
http://www.investorglossary.com/derivative.htm

discount
A discount is a difference between the price paid for an asset and the specified list price of a good  more...
http://www.investorglossary.com/discount.htm

downgrade
A downgrade is a reduction in the rating awarded a debt or equity security. A major credit agency downgrades the  more...
http://www.investorglossary.com/downgrade.htm

Dutch auction
Dutch auction, started in Netherlands' farms, is a descending price auction for multiple identical items. A true Dutch auction starts  more...
http://www.investorglossary.com/dutch-auction.htm

equity risk premium
Equity risk premium is a premium return of the stock market that it above the rate of Treasury bills. By  more...
http://www.investorglossary.com/equity-risk-premium.htm

face value
Face value is the nominal, or stated, amount of security. The face value of a bond is the amount the  more...
http://www.investorglossary.com/face-value.htm

Fannie Mae
Fannie Mae, or the Federal National Mortgage Association, is one of the primary purchasers of eligible home loans from issuers.  more...
http://www.investorglossary.com/fannie-mae.htm

Federal Home Loan Mortgage Corporation
The Federal Home Loan Mortgage Corporation (FHLMC) is a public company (NYSE:FRE) chartered by congress in 1970 to stabilize mortgage  more...
http://www.investorglossary.com/federal-home-loan-mortgage-corporation.htm

Federal National Mortgage Association
The Federal National Mortgage Association, or Fannie Mae, is one of the primary purchasers of eligible home loans from issuers.  more...
http://www.investorglossary.com/federal-national-mortgage-association.htm

flat yield curve
A flat yield curve has a small spread between short and long-term rates. The flat yield curve implies that  more...
http://www.investorglossary.com/flat-yield-curve.htm

flight to quality
Flight to quality refers to investors moving investments into low-risk securities during times of economic or political uncertainty. Flight  more...
http://www.investorglossary.com/flight-to-quality.htm

in escrow
An item of value is in escrow when that item is transferred to a third party (an escrow agent) for  more...
http://www.investorglossary.com/in-escrow.htm

inflation-indexed security
An inflation-indexed security is a stock or bond whose return is promised to be higher than the rate of inflation.  more...
http://www.investorglossary.com/inflation-indexed-security.htm

intrinsic value
The actual value of a security, as opposed to its market or book value, is the intrinsic value of  more...
http://www.investorglossary.com/intrinsic-value.htm

inverted yield curve
An inverted yield curve is one where the most long-term rate is not highest. A completely inverted yield curve  more...
http://www.investorglossary.com/inverted-yield-curve.htm

junk bond
A junk bond is any bond that is rated below investment grade (BB or lower) by Moody’s or Standard &  more...
http://www.investorglossary.com/junk-bond.htm

Long Bond
In the US, is the thirty-year Treasury bond is often called the long bond. The US Treasury stopped issuing  more...
http://www.investorglossary.com/long-bond.htm

long position
A long position in the stock market means that an investor has purchased a stock with the expectation that its  more...
http://www.investorglossary.com/long-position.htm

market capitalization
Market capitalization is the number of shares outstanding times the stock price. In other words, market capitalization is the dollar  more...
http://www.investorglossary.com/market-capitalization.htm

money market
The money market is the market for short-term financial instruments. Money market instruments include Treasury bills, bankers acceptances, commercial  more...
http://www.investorglossary.com/money-market.htm

money market mutual fund
A money market mutual fund is a mutual fund that invests in short-term money market investments, such as US Treasury  more...
http://www.investorglossary.com/money-market-mutual-fund.htm

mortgage bond
A mortgage bond is a debt obligation secured by a mortgage on a commercial or residential property. A mortgage bond  more...
http://www.investorglossary.com/mortgage-bond.htm

mortgage-backed security
A mortgage-backed security (MBS) is a security based upon a pool of underlying mortgage loans. For instance, 500 thirty  more...
http://www.investorglossary.com/mortgage-backed-security.htm

municipal bond
A municipal bond is a bond issued by a city, county, or state government. A government body issues a municipal  more...
http://www.investorglossary.com/municipal-bond.htm

negative yield curve
A negative yield curve has short-term rates, or yields, higher than the most long-term yields. A negative yield curve  more...
http://www.investorglossary.com/negative-yield-curve.htm

New York Stock Exchange
The New York Stock Exchange (NYSE) is a for-profit organization that enables trading and listing of securities on the stock  more...
http://www.investorglossary.com/new-york-stock-exchange.htm

normal yield curve
The normal yield curve is a yield curve with interest rates gradually rising as the term increases. The shape  more...
http://www.investorglossary.com/normal-yield-curve.htm

OTC Bulletin Board
The OTC Bulletin Board is an automated trading system managed by the National Association of Security Dealers (NASD).  more...
http://www.investorglossary.com/otc-bulletin-board.htm

par value
Par value is the face or stated value of a security. For common stock, par value is merely a  more...
http://www.investorglossary.com/par-value.htm

phantom income
Phantom income is any income that is reportable as taxable income but that does not generate cash flow for the  more...
http://www.investorglossary.com/phantom-income.htm

public offering
A public offering is an invitation to participate in a debt or equity offering that extends to the public.  more...
http://www.investorglossary.com/public-offering.htm

quote
In the financial markets, a quote is the price at which a security is trading, has recently traded, or both.  more...
http://www.investorglossary.com/quote.htm

rating service
A rating service is an organization that provides assessments of various entities for an interested audience, such as investors.  more...
http://www.investorglossary.com/rating-service.htm

sentiment
Sentiment is a measure of the bearishness or bullishness of market participants. Major market turning points can be accompanied by  more...
http://www.investorglossary.com/sentiment.htm

stock buyback
A stock buyback occurs when a company repurchase their own shares from the marketplace. Companies may decide on a stock  more...
http://www.investorglossary.com/stock-buyback.htm

TIPS
TIPS are Treasury Inflation Protected Securities. As with other notes and bonds, holders of TIPS receive periodic interest payments and  more...
http://www.investorglossary.com/tips.htm

Treasury Bill
To help finance federal spending, the Treasury sells short term debt securities known as a Treasury bill. A private investor  more...
http://www.investorglossary.com/treasury-bill.htm

Treasury Inflation-Protected Security
A Treasury Inflation-Protected Security (TIPS) is a U.S. Treasury bond whose interest and redemption payments are tied to inflation.  more...
http://www.investorglossary.com/treasury-inflation-protected-security.htm

underlying debt
For municipal bonds, an underlying debt is the debt held by a government entity which exists in the jurisdiction of  more...
http://www.investorglossary.com/underlying-debt.htm

warrant
A warrant, or stock warrant, is a security issued by a corporation that allows the owner to redeem the warrant  more...
http://www.investorglossary.com/warrant.htm

yield
In general, yield is a term that defines a return on a capital investment of various forms. Typically, yield is  more...
http://www.investorglossary.com/yield.htm

yield curve
A yield curve is a plot of the yields of all bonds of the same quality, from lowest to highest  more...
http://www.investorglossary.com/yield-curve.htm

yield spread
The term yield spread is the name given to the difference between two different yields, or rates. What yields  more...
http://www.investorglossary.com/yield-spread.htm

yield to maturity
Yield to maturity, the most widely quoted yield for bonds, measures the total overall return. A bond’s yield to  more...
http://www.investorglossary.com/yield-to-maturity.htm

zero-coupon bond
A zero-coupon bond is a bond that does not pay interest but instead is sold at a discount, i.e., for  more...
http://www.investorglossary.com/zero-coupon-bond.htm

zero-coupon convertible
A bond that has no coupon and is convertible into the common stock of the issuing company is referred to  more...
http://www.investorglossary.com/zero-coupon-convertible.htm

Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2008 Investor Glossary - All rights reserved