Important Vocabulary
- Investors: Providers of funds
- Issuing bonds: Borrowing money
- Principal: The amount of a loan
- Maturity: The date on 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
Extracted From
MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.
