The interest rate on a bond. It is expressed as a semi-annual rate.
COUPON PAYMENT
The dollar amount of interest paid to an investor. The amount is calculated by multiplying the interest of the bond by its face value.
COUPON
A feature of a bond that denotes the amount of interest due and the date that the payment will be made.
CORPORATE REPORTS
Corporate reports can provide important information for investors by, for example, telling you whether a company is making money or losing money and why. You’ll find this information in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K, and periodic reports of significant events on Form 8-K. It’s usually easy to find… Continue reading CORPORATE REPORTS
CORPORATE GOVERNANCE
A framework which may include rules and regulations, corporate charter and bylaws, formal policies, as well as customs and other processes, that determines the leadership, organization, and direction of a company.
CONVERTIBLE SECURITIES
A “convertible security” is a security—usually a bond or a preferred stock—that can be converted into a different security—typically shares of the company’s common stock. In most cases, the holder of the convertible determines whether and when to convert. In other cases, the company has the right to determine when the conversion occurs. Companies generally… Continue reading CONVERTIBLE SECURITIES
CONVERSION
A feature some funds offer that allows investors to automatically switch from one fund class to another, typically one with lower annual expenses, after a set period of time. The fund’s prospectus or profile will state whether the fund has a conversion feature.
CONTINGENT DEFERRED SALES LOAD
A type of back-end load, the amount of which depends on the length of time the investor holds his or her shares. For example, a contingent deferred sales load might be 5% if an investor holds his or her shares for one year, 4% after two years, and so on until the load disappears completely.
CONSOLIDATED TAPE
The “consolidated tape” is a high-speed, electronic system that reports the latest price and volume data on sales of exchange-listed stocks. The data reflected on the consolidated tape are generated by various market centers, including all National Securities Exchanges and Alternative Trading Systems, and broker-dealers trading off exchanges. Websites that provide updated market information and financial news programs… Continue reading CONSOLIDATED TAPE
COMPOUND INTEREST
Interest paid on principal and on accumulated interest.