A bond issue, all or part of which may be redeemed by the issuing corporation under specified conditions before maturity. The term also applies to preferred shares that may be redeemed by the issuing corporation.
Capital gain or capital loss
Profit or loss from the sale of a capital asset. The capital gains provisions of the tax law are complicated. You should consult your tax advisor for specific information.
All shares representing ownership of a business, including preferred and common.
Total amount of the various securities issued by a corporation. may include bonds, debentures, preferred and common stock, and surplus. Bonds and debentures are usually carried on the books of the issuing company in terms of their par or face value. Preferred and common shares may be carried in terms of par or stated value. Stated value may be an arbitrary figure decided upon by the director or may represent the amount received by the company from the sale of the securities at the time of issuance.
Security that can be readily converted into cash such as short-term government bonds like treasury bills; bank certificates of deposit; money market funds and other money market instruments. See Money Market Instrument
Reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions and not paid out in actual dollars and cents.
A transaction on the floor of the stock exchange that calls for delivery of the securities the same day. In "regular way" trade, the seller is to deliver on the third business day, except for bonds, which are the next day.
Certificate of deposit (CD)
A money market instrument characterized by its set date of maturity and interest rate. There are two basic types of CDs: traditional and negotiable. Traditional bank CDs typically incur an early-withdrawal penalty, while negotiable CDs have secondary market liquidity with investors receiving more or less than the original amount depending on market conditions.
The actual piece of paper that is evidence of ownership of stock in a corporation. Watermarked paper is finely engraved with delicate etchings to discourage forgery.
CLOSED END INVESTMENT FUNDS
A collective investment scheme which issues a fixed number of shares.
Chinese offshore renminbi accessible outside the Peoples Republic of China (PRC) traded in Hong Kong. The government of the PRC introduced this currency in July 2010 to encourage trade and investment with entities outside the PRC. The value of CNY and may be different.
Chinese onshore renminbi accessible within the Peoples Republic of China (PRC).
Property or assets that are offered to secure a debt security. This will act as security to the lender in case the borrower fails to meet his obligations.
Securities or other property pledged by a borrower to secure repayment of a loan.
Debt instruments issued by companies to meet short-term financing needs.
An agent who executes the public's orders for the purchase or sale of securities or commodities.
The broker's basic fee for purchasing or selling securities or property as an agent.
Physical goods that fall into one of two categories: hard commodities such as metals ( e.g. gold, copper, lead, uranium), diamonds, oil and gas; and soft commodities such as agricultural products, wool, cotton and foodstuff (e.g. cocoa, sugar, coffee).
Securities that represent an ownership interest in a corporation. If the company has also issued preferred stock, both common and preferred have ownership rights. Common stockholders assume the greater risk, but generally exercise the greater control and may gain the greater award in the form of dividends and capital appreciation. The terms common stock and capital stock are often used interchangeably when the company has no preferred stock.
A member of the exchange who trades in stocks on the floor for an account in which there is an interest. Also known as a registered trader.
A corporation that has diversified its operations usually by acquiring enterprises in widely varied industries.
Consolidated balance sheet
A balance sheet showing the financial condition of a corporation and its subsidiaries.
The ticker tape reporting transactions in NYSE-listed securities that take place on the NYSE or any of the participating regional stock exchanges and other markets. Similarly, transactions in AMEX-listed securities, and certain other securities listed on regional stock exchanges, are reported on a separate tape.
CONTINGENT CONVERTIBLE BOND
A type of convertible security where a bond will be exchanged for a set number of shares, usually of the issuing company, at a predefined price should a specific event occur. Such events include the share price of the issuer falling to a particular level for a certain period of time or the issuers core tier 1 capital ratio (the issuers capital versus the risk asset weighted assets on the issuers balance sheet) falling to a particular level.
Type of investment (e.g. a bond) that can be exchanged for a set number of shares usually of the issuing company, at a predetermined price or date.
A bond, debenture or preferred share that may be exchanged by the owner for common stock or another security, usually of the same company, in accordance with the terms of the issue.
A statistical measure of how two assets move in relation to each other.
A securities firm, bank or other financial organization that regularly performs services for another in a place or market to which the other does not have direct access. Securities firms may have correspondents in foreign countries or on exchanges of which they are not members. Correspondents are frequently linked by private wires. Member organizations of the NYSE with offices in New York may also act as correspondents for out-of-town member organizations that do not maintain New York offices.
Bond with interest coupons attached. The coupons are clipped as they come due and presented by the holder for payment of interest.
A bond backed by assets such as a pool of mortgages that remain on the issuer's balance sheet. The holder of the covered bond is exposed not only to the non-repayment of the debts but also to the financial health of the issuer.
Investment strategy that seeks to benefit from investing in credit related strategies. This could be on a relative value or directional (i.e. buying securities considered undervalued and selling short securities considered overvalued) approach in credit oriented instruments.
A stock having a provision that if one or more dividends are omitted, the omitted dividends must be paid before dividends may be paid on the company's common stock.
A method of voting for corporate directors that enables the shareholders to multiply the number of their shares by the number of directorships being voted on and to cast the total for one director or a selected group of directors. A 10-share holder normally casts 10 votes for each of, say, 12 nominees to the board of directors. One thus has 120 votes. Under the cumulative voting principle, one may do that or may cast 120 (10 x 12) votes for only one nominee, 60 for two, 40 for three, or any other distribution one chooses. is required under the corporate laws of some states and is permitted in most others.
CURRENCY FINANCIAL DERIVATIVE INSTRUMENT
A type of financial derivative instrument where the underlying asset is a currency or exchange rate, such as a currency futures contract. See Financial Derivative Instrument
Active currency management with the aim of generating additional returns.
Those assets of a company that are reasonably expected to be realized in cash, sold or consumed during one year. These include cash, U.S. Government bonds, receivables and money due usually within one year, as well as inventories.
Money owed and payable by a company, usually within one year.