Shares
Shares, also referred to as stocks, are commonly a
share of ownership in a corporation.
Options
A contract giving an investor a right
to buy,
call options, or sell,
put options, a fixed amount of
shares of a given stock at a specified price within a limited
time period.
Covered Call
A short call option position
in which the writer owns the number of shares of the underlying
stock represented by the option contracts.
Debentures
A
debenture is a loan secured on specific assets owned by a company
and is repaid if a company runs into difficulties.
Dividends
A portion of a company's profit
paid out to holders of common and preferred shares, the amount
having been decided on by the company's board of directors.
Bonds
a bond is simply an IOU. It is an
agreement under which a sum is repaid to an investor after an agreed
period of time.
Mutual Funds
These
are open-end funds that are not listed for trading on a stock
exchange and are issued by companies which use their capital to
invest in other companies.
Hedge Funds
These
funds are usually used by wealthy private investors or institutions
and restricted by law to no more than 100 investors.
Futures Contracts
A contract which
requires the delivery of a commodity or currency at a specified
value and date in the future.
Warrants
A warrant entitles the holder
to buy or sell a certain additional quantity of an underlying
security at an agreed-upon price.
