Intro to business chapter 31

Security

Tradable do u,net that shows evidence of debt or ownership

Capital loss

Amount lost when an asset is sold for less than what it was paid for.

Yield

Amount of money an investment earns.

Corporate bonds

Bonds issued by corporations.

Bond

Certificate issued by government promising to pay back borrowed money at a fixed rate of interest on one date.

Investing

Committing money or capital in order to gain a financial return.

Bond discount

Difference between the amount you pay and its face value.

Preferred stock

Gives owner the advantage of receiving cash dividends before stockholders.

Municipal bonds

Offer lowest interest rate, sold to finance city, town, or projects.

Capital gain

Profit made from the sale of a financial asset.

Common stock

Provides the most basic form of corporate ownership.

Coupon rate

Rate of interest on a bond.

Savings bonds

Registered Bonds that are sold in denominations of 50 to 1000

SEC

Securities and exchange commission.

Stock

Share of ownership in a corporation.

Dividends

Share of profits given to stock holders.