Posted on 2009/07/03, 15:52, by Michael Denaro.
Definition of Investing in Cash (Money) Market
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos).
The money market is used by [...]
Posted on 2009/07/03, 15:40, by Michael Denaro.
Definition of Investment in Bonds
Bond – a debt security pursuant to which an investor loans money to an entity (corporate or governmental) for a defined period of time at a specified interest rate.
Bonds are commonly referred to as fixed-income securities.
Coupon rate may be fixed (usually) or variable (e.g. tied to LIBOR). Most bonds have a [...]
Posted on 2009/07/03, 15:13, by Michael Denaro.
Definition of Investment in Stock Market
Stock, Share, Equity – a security representing ownership in a corporation a claim on a share of the corporation’s assets and earnings.
Common stock usually gives the owner a right to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a priority [...]
Posted on 2009/04/06, 23:01, by Michael Denaro.