Stock Market Trading 101

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Bond (corporate Treasury or municipal)

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A debt obligation of the company the US Treasury department or city where the borrower receives funds usually an increment of $1000 make semi annual interest payment spaced on the coupon rate and eventually replace the borrowed amount $1000 to the lender at the maturity date of the bond.

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Certificates of deposit CD's

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An investment choice at most banks where you agree to deposit a specific amount of money for a fixed period of time this is called the maturity by agreeing to keep your money at the bank for a certain length of time the bank usually pays you interest rate higher than savings and money market accounts

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ETF

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Exchange traded funds or a cross between mutual funds and stocks. in ETF's are simply a portfolio of stocks or bonds or other investments that trade on a stock exchange just like a regular stock does.

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Money market account

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An account typically found in a bank that usually pays a higher interest rate than savings accounts but limits the number of transactions you can make in a month.

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NAV

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Net asset value of a mutual fund at the end of the business day it is the equivalent of a share price of a stock.

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Stocks

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Stocks are equity investments which means that individuals that own stock shares of a company actually own part of that company.

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Yield Curve

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A graphical representation of the relationship between yield and maturity. Yield or return is on a vertical axis and the maturity on the horizontal axis. Generally the shorter maturity investments have lower yields and the longer maturity investments have higher yields.