Generally income bonds promise to repay principal but to pay interest only when earned. In some cases, unpaid interest on an income bond may accumulate as a claim against the corporation when the bond becomes due. An income bond may also be issued in lieu of preferred stock.
A written agreement under which bonds and debentures are issued, setting forth maturity date, interest rate and other terms.
Member on the floor of the NYSE who executes orders for other brokers having more business at that time than they can handle themselves, or for firms who do not have their exchange member on the floor.
A statistical yardstick expressed in terms of percentages of a base year or years. For instance, the NYSE Composite of all NYSE common stocks is based on 1965 as 50. An index is not an average.
INFLATION-LINKED DEBT SECURITY
A debt security the payments of which are periodically adjusted according to a government published inflation index. See Debt Security
An organization whose primary purpose is to invest its own assets or those held in trust by it for others. Includes pension funds, investment companies, insurance companies, universities and banks.
Payments borrowers pay lenders for the use of their money. A corporation pays interest on its bonds to its bondholders.
Intermarket Trading System (ITS)
An electronic communications network now linking the trading floor of seven registered exchanges and FINRA to foster competition among them in stocks listed on either the NYSE or AMEX and one or more regional exchanges. Through ITS, any broker or market maker on the floor of any participating market can reach out to other participants for an execution whenever the nationwide quote shows a better price is available.
A computer terminal that provides market information - last sale price, quotes, volume, etc. - on a screen or paper tape.
Also known as an underwriter. The middleman between the corporation issuing new securities and the public. The usual practice is for one or more investment bankers to buy outright from a corporation a new issue of stocks or bonds. The group forms a syndicate to sell the securities to individuals and institutions. Investment bankers also distribute very large blocks of stocks or bonds - perhaps held by an estate.
A company or trust that uses its capital to invest in other companies. There are two principal types: the closed-end and the open-end, or mutual fund. Shares in closed-end investment companies, some of which are listed on the New York Stock Exchange, are readily transferable in the open market and are bought and sold like other shares. Capitalization of these companies remains the same unless action is taken to change, which is seldom. Open-end funds sell their own shares to investors, stand ready to buy back their old shares, and are not listed. Open-end funds are so called because their capitalization is not fixed; they issue more shares as people want them.
One whose principal business consists of acting as investment advisor and rendering investment supervisory services.
Generally they are debt securities that are deemed by a credit rating agency as more capable of meeting payment obligations than below investment grade debt securities. They are rated at least BBB-/Baa3 or higher by Standard & Poor's or Moody's respectively, or otherwise similarly rated by another independent credit rating agency, on the basis of creditworthiness or risk of default by the issuer. See Rating Agency, Below Investment Grade, Debt Security.
Responsible for deciding how assets of a Sub-Fund are invested in line with the Sub-Fund's Investment Objective and Policy.
The use of money for the purpose of making more money, to gain income, increase capital, or both.
Individual retirement account. A pension plan with tax advantages. IRAs permit investment through intermediaries like mutual funds, insurance companies and banks, or directly in stocks and bonds through stockbrokers.
Any of a company's securities, or the act of distributing such securities.