invts - midterm vocabulary

A security that is reliant upon an underlying asset or group of assets

An asset that is directily useful for producing a good or service

Investment in a company, firm, or security that is not publicaly traded

Gives the buyer the option to buy a stock at a certain price point within a specific period

A product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum investment untouched for a predetermined period of time

Investments that mature between two and 10 years, with bi-annual interest payments, but relatively low yields

Provides investors with a diversified portfolio of investments across various asset classes

Where investors buy and sell securities they already own

Investment that provides a return in the form of constant periodic interest payments and the eventual return of principal at maturity

Gives the buyer the option to sell a stock at a certain price point within a specific period

A conflict of interest inherent in any relationship where one party is expected to act in another's best interests

A bond's annual coupons divided by its current price

A security that makes no periodic payments and is sold at a deep discount from face value.

Where specific investments are made with the goal of outperforming an investment benchmark index or target return

Move funds from parties with excess capital to parties needing funds