Investor Definitions

LISTING STANDARDS

Before a company’s stock can begin trading on an exchange, the company must meet certain minimum financial and non-financial requirements,…

5 years ago

LIQUIDITY (OR MARKETABILITY)

Liquidity generally refers to how easily or quickly a security can be bought or sold in a secondary market. Liquid…

5 years ago

LIMIT ORDERS

A limit order is an order to buy or sell a security at a specific price. A buy limit order…

5 years ago

LIFECYCLE FUNDS

A diversified mutual fund that automatically shifts towards a more conservative mix of investments as it approaches a particular year…

5 years ago

LIABILITY/DEBT

An amount owed to a person or organization for borrowed funds. Loans, notes, bonds, and mortgages are forms of debt.…

5 years ago

LATE PAYMENT OF INTEREST ON BONDS

Investors sometimes complain to the SEC staff about late payments of interest owed to them on their bonds. The SEC, however,…

5 years ago

LARGE CAP, MID CAP, SMALL CAP

Terms used to describe a company’s size and market value (market capitalization).

5 years ago

ISSUER

The entity obligated to pay principal and interest on a bond.

5 years ago

INVESTMENT-GRADE BOND (OR HIGH-GRADE BOND)

Bonds that are believed to have a lower risk of default and receive higher ratings by the credit rating agencies,…

5 years ago

INVESTMENT COMPANY

A company that issues and invests in securities. The three types of investment companies are mutual funds, closed-end funds, and…

5 years ago