Call
An issuer's right to redeem a bond or a preferred share before it matures. A bond will usually be called when interest rates fall so significantly that the issuer can save money by floating new bonds at lower rates.
Capital Gains
Profit realized from the sale of securities, property or other assets. How much the IRS taxes gain depends on how long the security is held. Gains from stocks held for less than 12 months are considered short-term capital gains, which are taxed at the regular income-tax rate. That can be as high as 39.6%. But if a stock is held for more than one year, the gains tax will be a maximum of 20%.
Cash Equivalents
Instruments and investments of high enough liquidity and safety that they are virtually as good as cash. A highly liquid security with a known market value and maturity. Ex. Treasury Bill
Ceiling
The highest level allowable for certain financial transactions.
i.e.: stock price, bond interest rate
Certificate of Deposit (CDs)
A certificate issued by a bank that shows that a specified sum of money has been deposited. The certificate guarantees to repay your principal—the amount you deposited—with interest on a specific maturity date. Often there are significant penalties for early withdrawal of your money.
Certified Check
A check that a bank guarantees to pay, which becomes a legal obligation for that bank. The funds drawn to cover the check are immediately withdrawn from the depositor’s account.
Closing Costs
The expenses involved in selling real estate. Namely from transferring the property from seller to buyer which include lawyer’s fees, survey charges, and insurance.
Collateral
Property such as stock that borrowers are required to turn over to lenders if they are unable to repay a loan. Hard assets such plant, property and equipment can be repossessed and liquidated.
Commission
A fee paid to the broker, middleman, or sales representative for selling a number of a certain commodity. Usually calculated as a certain percentage from the total value of whatever is sold.
Commodities
Goods ranging from items such as agricultural products to raw materials that can either be sold on the market for immediate delivery or on the commodities exchanges for later delivery. Commodities are often viewed as a counter-balance against inflation because their price rises with the general price of consumer goods and services.
http://www.videojug.com/interview/commodities-2
Concession
A price reduction or rebate from an established price or charge.
Consumer credit
Money loaned to individuals, usually on an unsecured basis that requires monthly repayment. Bank loans, credit cards and installment credit are examples of consumer credit.
Consumer Goods
Goods that are bought for personal and household use as opposed to capital goods which are goods purchased for the production of capital and augmentation of business such as machinery.
Corporate bonds
A corporate bond is an instrument of debt that is issued by a private or public corporation. These bonds are rated by credit rating agencies such as Standard & Poor's and Moody’s. The assigned ratings which are represented as letters (AAA, AA, A etc) are based on a company's ability to pay its debts over time, and help determine the interest rate that the company has to pay. Bonds with ratings below BBB are considered high yield (“junk”) bonds because they pay higher interest rates, but have the greatest risk of failure.
Corporation
A legal business entity chartered by either the Federal Government or a state, recognized as a separate and distinct legal entity from those who own it. It is therefore regarded as a person in a court of law allowed to own property, incur debts, or sue. Three distinct features of a corporation are that: owners can only lose what they invest; the transfer of ownership is easily done through the transfer and sale of shares in the corporation, and a continuation of its existence.
http://www.videojug.com/interview/setting-up-a-corporation
Cost of Living
The level of prices of goods and services that represent a benchmark for a reasonable standard of living.
Cost of Living Adjustment (COLA)
For people on a fixed income and wages, or living off of government benefits or pensions, a Cost of Living Adjustment (COLA) is used to add percentages to their income in order to counteract the effects of inflation. Because the fixed value of their income stays the same as the price of goods increase during inflation, a COLA is necessary to maintain a fair balance between income and the cost of goods and services.
http://www.truveo.com/Retired-teachers-rally-for-cost-of-living/id/3521659275
Credit Limit
The maximum amount of credit that a customer of a store, bank, etc., is authorized to use.
For credit cards, it is defined as the maximum amount of credit that a client is authorized to use.
Credit Score
A number that represents an individuals financial creditability, in other words, his or her ability and likelihood to pay off a debt in a timely manner. A credit score is ranged from 300 to 850 by FICO, with 850 being the favorable end of the spectrum.
http://www.videojug.com/interview/credit-score-basics
Currency
A country's official unit of money. In overseas invesentments, currency risks can be problematic. Currency fluctuations can have an adverse effect on stock prices. While stocks in the chosen country could be doing very well, a decline in the value of the currency's exchange rate to the dollar could eliminate any gains made.