STOCK-AND-BONDS-PDF.-4_20241029_191438_0000

Stock

Stocks represent ownership in a company and their prices fluctuate daily based on supply and demand.

Bonds

Bonds are loans made to companies or governments that guarantee repayment of the principal plus interest payments.

Dividend

A share in the company's profit paid to shareholders.

Market Value

The current price of a stock at which it can be sold.

Coupon

Periodic interest payment that the bondholder receives during the time between purchase date and maturity date.

Par Value

The per share amount payable on the maturity date of a bond.

Stock Yield Ratio

Ratio of the annual dividend per share to the market value per share.

Equity Financing

A form of raising money by allowing investors to be part owners of the company.

Debt Financing

A form of raising money by borrowing from investors.

Stock Market Index

A measure of a portion of the stock market, indicating the performance of selected companies.

Face Value

The nominal value of a bond as stated on the bond certificate.

Coupon Rate

The rate per coupon payment period of a bond.

Fair Price of a Bond

Present value of all cash inflows to the bondholder.

Volume

The number of shares of stock sold for the day.

Stock Market

A place where stocks can be bought or sold.

Investment Risk

The uncertainty involved in the ability to earn returns on investments.

Coupon Rate

The percentage rate used to calculate the coupon payment of a bond.

Price of a Bond

The market price at which a bond is bought or sold, which may differ from its face value.

Market Value

The price at which a bond can be bought or sold in the market.

Dividend per Share

The total dividend payments divided by the number of outstanding shares.

Stock Market

A platform for buying and selling shares of publicly traded companies.