GLOSSARY OF FINANCIAL & INVESTMENT TERMS
A-B C-D E-F G-H I-J K-L M-N O-P Q-R S-T U-V W-X Y-Z
Options |
An options contract gives the buyer the right, without obligation to buy or sell (put or call) an asset at a specified “strike price” within a specified period of time. |
| Permanent Insurance | There are various types of permanent, or cash value, insurance policies—including whole life, universal life, variable life, and variable universal life policies—that enable you to build up tax-deferred cash value in addition to guaranteeing the payment of a death benefit to your beneficiaries. These policies all have different features, and are generally designed and priced for you to keep over a long period of time. The cash values can be affected by the insurer’s mortality rates, policy charges or expenses, and other factors, such as dividend yield, interest rate credited or investment performance. |
| Preferred Stock | A class of stock issued by a corporation that differs from common stock in a variety of ways: (1) Dividends are calculated at a fixed rate and are payable before common stock dividends; (2) Preferred stock holders do not have voting rights; and (3) In the event of the company’s bankruptcy or liquidation, preferred stock-holders are paid off before common stockholders. |
Prime Interest Rate |
The rate charged by banks on short-term loans to large commercial customers with the highest credit rating. |
Private Equity: |
Privately negotiated investments with equity or equity-like features in companies that are not publicly traded or are otherwise illiquid. |
