THOUGHT OF THE WEEK
INVESTMENT JARGONS (PART 2)
1. Bond fund - A mutual fund that invests exclusively in bonds.
2. Bull market - Any market in which prices are advancing in an upward trend. In general, someone is bullish if they believe the value of a security or market will rise. The opposite of a bear market.
3. Capital - The funds invested in a company on a long-term basis and obtained by issuing preferred or common stock, by retaining a portion of the company's earnings from date of incorporation and by long-term borrowing.
4. Capital gain - The difference between a security's purchase price and its selling price, when the difference is positive.
5. Capital loss - The amount by which the proceeds from a sale of a security are less than its purchase price.
6. Capitalization - The market value of a company, calculated by multiplying the number of shares outstanding by the price per share.
7. Cash equivalent - A short-term money-market instrument, such as a Treasury bill or repurchase agreement, of such high liquidity and safety that it is easily converted into cash.
8. Common stock - Securities that represent ownership in a corporation; must be issued by a corporation.
9. Corporate bond - A long-term bond issued by a corporation to raise outside capital.....(TO BE CONTINUED)