Share Financial Glossary
What is it? A legal document that makes its holder a part owner of the company that issues the share.Finance Term Definition Added By: Ellie
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Other Similar Finance Terms:
Financial Term deposit notes is A form of bank obligation that is similar to a deposit. Deposit notes are typically issued with terms from two to five years. Like CDs, deposit notes are issued for specified terms at either specified rates or specified rate formulas. Unlike CDs, deposit notes are sold in a predetermined amount for a predetermined time period. The deposit note terms are usually described in an offering circular similar to an offering of securities. For investors, the primary difference between bank CDs and bank deposit notes is the way in which interest is calculated. Like many government agency securities and corporate bonds, interest rates for deposit notes are typically calculated using accrual methods that assume a 360-day year comprised of months that all have 30 days. Deposit notes may be rated by a nationally recognized statistical rating organization (NRSRO).Financial Term Load is A commission paid by an investor to a broker for the purchase or sale of a mutual fund.
Financial Term Discounting is The inverse of compounding. This process is used to determine the present value of a cash flow.
Financial Term Prepayment Penalty is A penalty under a note, mortgagor deed of trust imposed when the loan is paid before it is due.
Financial Term Option is The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. For stock options, the amount is usually 100 shares. Also called option contract.