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investment

Investment Dictionary: the I in Investing

by J. Hamilton Fraser on September 4, 2010

Investment generally means the utilization of resources, particularly money, for future revenues. In every business, regardless of its type, size, or any category, the word investment will always be their common denominator.

Below are some of the common words located in the investment dictionary and investment tips.

  • Income bond – this usually guarantee to pay back principal with the condition to recompense interest only when earned. In the absence of preferred stock, an income bond may be issued.
  • Indenture – it refers to the written formal agreement between two or more parties. Indicated in this agreement are the issuance of bond and the date, which the bonds will mature, the interest rates, and other terms and conditions.
  • Independent broker – an individual who performs orders for other brokers as well as for other companies.
  • Index – refers to the statistical benchmark stated in terms of percentages of a base year or years. Additionally, an index is not similar to average.
  • Institutional investor – in investment dictionary, it refers to an institution whose principal function is to invest its own assets for others. Examples of these institutional investors include pension funds, investment corporations, insurance firms, universities, and banks.
  • Interest – Payments borrowers pay lenders for the use of their money. A corporation pays interest on its bonds to its bondholders.
  • Interrogation device – A computer terminal that provides market information – last sale price, quotes, volume, etc. – on a screen or paper tape.
  • Investment banker – more commonly known as an underwriter in investment dictionary, the investment banker serves as intermediary between the company issuing new securities and the public. It agrees to buy at a fixed price any unsold portion of an issue of securities.
  • Investment Company – as its names suggests, it refers to a company that utilizes its capital to invest in other firms. It also refers to a company that holds securities in other companies entirely for investment.
  • Investment counsel – refers to a person or organization whose primary dealings consist of playing as role of investment advisor and providing investment management assistance.
  • IRA – stands for individual retirement account. It is a financial plan that allows employees to invest money for retirement and pay no tax on the amount invested either at the time of investment or after retirement.

Other than those mentioned above, there are still way more terms in investment dictionary that anyone should be aware of. These are just a handful of terms that are useful for understanding the language of the business. Nevertheless, knowing these few words in the investment dictionary is definitely an advantage.

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Stock Market Advice – Your Surefire Guide to Trading Revenue

January 14, 2010

Are you looking for a stock market advice? First and foremost, you must understand that the stock market is not a place for people looking for ways to generate money overnight. The great thing is that even if you are not guaranteed to obtain revenues instantaneously, choosing the most excellent stock will surely diversify your [...]

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