Bonds │ Business Communication │ Vocabulary


Important Vocabulary

  • Investors: Providers of funds
  • Issuing bonds: Borrowing money
  • Principal: The amount of a loan
  • Maturity: Date at which the money will be returned
  • Pension funds: Retirement money
  • Buy-and-hold investors: Keep their bonds till maturity
  • Non-payment: Default
  • Price appreciation: Fall in interest rates
  • Price depreciation: Rise in interest rates
  • Capital gains: Profits on the sale of assets

  • Equity financing: Issuing shares
  • Debt financing: Issuing bonds
  • Bearer certificate: A security whose owner is not registered with the issuer
  • Liquid: Easily sold (turned into cash)
  • Par: Nominal or face value (100%)
  • Coupon: The rate of interest paid by a fixed interest security
  • Yield: The rate of income an investor receives taking into account a security's current price

-- 𓐴𓐴𓐴 --

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Extracted From:

MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (Second). Cambridge University Press.

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