INVESTMENT JARGONS AND WHAT THEY MEAN (PART 3)
The amount by which the proceeds from a sale of a security are less than its purchase price.
If Kwame again bought 1,000 Unilever shares on 4th January 2021 at a price of GHS 8.29 per share. If he sells all his shares on 10th March 2021 at a price of GHS 7.47 per share. Assuming there are no fees charged, the capital loss of Kwame will be (7.47*1,000) – (8.29*1,000)
= 7,470 – 8,290
This means that the capital loss for Kwame is GHS 820
The fixed amount of money that an issuer agrees to pay an investor. It is most often a percentage of the face value of an investment.
You want to buy a house in the next 5 years and you make an investment that pays you 10% per annum. The 10% you earn is what the investment company is paying as interest on the investment you have made.