accrued interest
Accrued interest is the interest that is due on a bond since its last interest payment was made. A more...
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AMEX
AMEX is the American Stock Exchange. AMEX is sometimes called the Curb, a name that refers to its roots more...
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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...
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balanced fund
A balanced fund is a mutual fund that invests in stocks, bonds, and money market investments (cash). The proportion of more...
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bellwether
A bellwether stock is a stock that is generally viewed an an indicator of overall market or sector direction. IBM, more...
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benchmark interest rate
The benchmark interest rate is the lowest interest rate that an investor will accept for a non-Treasury investment. The more...
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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
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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
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bonds
A bond is a financial instrument that is purchased by an investor (bondholder) and entitles the bondholder to receive payment more...
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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
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call price
The call price is the price at which an issuer of a security can redeem that security. The call more...
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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
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cash equivalents
Cash equivalents are investments that are so liquid and so safe that they are nearly the same as cash. Statement more...
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cash reserves
A company’s cash reserves are the funds available to meet its needs for cash, especially unanticipated needs. What level more...
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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
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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
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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
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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
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CUSIP
CUSIP is an abbreviation for Committee on Uniform Securities Identification Procedures of the American Bankers Association. CUSIP numbers are more...
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debt
In business, a debt is an obligation of one party to pay another, usually as repayment for money borrowed. more...
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debt capital
Debt capital is funds supplied by lenders that is part of a firm's capital structure. Debt capital usually refers to more...
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debt financing
Debt financing refers to the borrowing of funds in order to finance a purchase, acquisition or expansion. Debt financing more...
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debt instrument
A debt instrument is a contractural or written assurance to repay a debt. A debt instrument can be a more...
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debt limit
A debt limit is the maximum amount of debt which a government is allowed take on. A governmental debt more...
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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
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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
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debtholder
A debtholder is the investor who holds a debt instrument, most commonly a bond. With bonds, the terms bondholder more...
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debtor
A debtor is a person or entity that is owes money to another person or entity (the creditor). A more...
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denomination
The word denomination has three distinct but closely related uses in a financial context. First, in a given currency, more...
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derivative
A derivative, or derivative security, is an asset whose price is based on the value of an underlying asset. more...
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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
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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
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Dutch auction
Dutch auction, started in Netherlands' farms, is a descending price auction for multiple identical items. A true Dutch auction starts more...
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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
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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
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Fannie Mae
Fannie Mae, or the Federal National Mortgage Association, is one of the primary purchasers of eligible home loans from issuers. more...
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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
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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
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flat yield curve
A flat yield curve has a small spread between short and long-term rates. The flat yield curve implies that more...
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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
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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
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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
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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
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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
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junk bond
A junk bond is any bond that is rated below investment grade (BB or lower) by Moody’s or Standard & more...
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Long Bond
In the US, is the thirty-year Treasury bond is often called the long bond. The US Treasury stopped issuing more...
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long position
A long position in the stock market means that an investor has purchased a stock with the expectation that its more...
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market capitalization
Market capitalization is the number of shares outstanding times the stock price. In other words, market capitalization is the dollar more...
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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
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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
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mortgage bond
A mortgage bond is a debt obligation secured by a mortgage on a commercial or residential property. A mortgage bond more...
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mortgage-backed security
A mortgage-backed security (MBS) is a security based upon a pool of underlying mortgage loans. For instance, 500 thirty more...
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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
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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...
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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
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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
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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
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par value
Par value is the face or stated value of a security. For common stock, par value is merely a more...
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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yield spread
The term yield spread is the name given to the difference between two different yields, or rates. What yields more...
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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
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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
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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
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