Skip to main content
Back

Stocks, Bonds, and Mutual Funds definitions

Control buttons has been changed to "navigation" mode.
1/15
  • Bond
    A financial security offering fixed repayment of principal plus interest, with repayment prioritized in bankruptcy.
  • Principal
    The original loan amount invested in a financial security, which is repaid at maturity.
  • Coupon Rate
    The interest rate paid to investors on a bond, representing the return received over time.
  • Maturity Date
    The specific date when a financial security must be repaid, marking the end of its investment period.
  • Bankruptcy
    A legal process where a company’s assets are distributed, with bondholders receiving payment before other stakeholders.
  • Stock
    A financial asset representing partial ownership in a company, entitling holders to profits and growth.
  • Shareholder
    An individual or entity owning part of a company, entitled to a portion of its profits and capital gains.
  • Dividend
    A payment of profit distributed by a corporation to its shareholders, providing regular income.
  • Capital Gain
    The increase in value of a financial asset, realized when sold for more than its purchase price.
  • Retained Earnings
    Profits kept by a company to fund future projects and growth, rather than distributed to shareholders.
  • Mutual Fund
    An investment vehicle pooling money to buy a diversified portfolio of assets, managed by professionals.
  • Diversification
    A risk-reduction strategy involving investment in a variety of assets to minimize exposure to any single risk.
  • Actively Managed Fund
    An investment portfolio overseen by managers who frequently buy and sell assets to maximize returns.
  • Passively Managed Fund
    An investment portfolio tracking a specific index, holding assets with minimal trading for broad market exposure.
  • Financial Intermediary
    An entity facilitating investment by connecting investors with firms, often through pooled funds like mutual funds.