guide to lease buy invest

Call option
Buying a call option gives you the right to buy a fixed quantity of the underlying investment at a specified price, called the strike price, within a specified time period. For example, you might buy a call option on 100 shares of a stock if you expect the market price to increase but prefer not to tie up your money by making the actual purchase. If the price of the stock goes up, you can exercise the option and buy at less than the market price. But if the price doesn't change or it drops, you can simply let the option expire.

Call option | Details |

Callable bond
A callable bond can be redeemed by the issuer before it matures if that provision is included in the terms of the bond agreement, or deed of trust. Bonds are typically called when interest rates fall, and issuers can save money by paying off existing debt and offering new bonds at lower rates. If a bond is called, the issuer may pay the bondholder a premium, or an amount above the par value of the bond.

Callable bond | Details |

Capital
Capital is any asset that is used to generate income or make a long-term investment. For example, the money you use to buy shares in a mutual fund is considered capital. So is the money you use to make a down payment on a house. Businesses use capital, which is often money from loans or earnings, for reinvestment, expansion, and acquisitions.

Capital | Details |

Capital appreciation
Any increase in a capital asset's fair market value is called capital appreciation. For example, if a stock increases in value from $30 a share to $60 a share, it shows capital appreciation. Some stock mutual funds that invest for aggressive growth are called capital appreciation funds.

Capital appreciation | Details |

Capital gain
When you sell an asset at a higher price than you paid for it, the difference is your capital gain. For example, if you buy 100 shares of stock for $20 a share and sell them for $30 a share, you realize a capital gain of $10 a share, or $1,000 in total. If you own the stock for more than a year before selling it, you have a long-term capital gain. If you hold the stock for less than a year, you have a short-term capital gain.

Capital gain | Details |

Cash balance pension
A cash balance pension is an employer sponsored retirement plan that resembles defined benefit plans in some ways and defined contribution plans, such as 401(k)s, in others. As with defined benefit plans, the employer makes a contribution in each employee's name and guarantees a return, typically promising to pay interest at a rate linked to the rate being paid on US Treasury bonds.

Cash balance pension | Details |

Certificate of accrual on Treasury securities
CATS are US Treasury zero coupon bonds that are sold at deep discount to par, or face value. Like other zeros, the interest isn't actually paid during the bond's term but accumulates so that you receive face value at maturity. You can use CATS in your long-term portfolio to provide money for college tuition or retirement, for example.

Certificate of accrual on Treasury securities | Details |

Certificate of deposit (CD)
CDs are time deposits offered by banks and insured by the Federal Deposit Insurance Corporation (FDIC). You generally earn compound interest at a fixed rate, which is determined by the current interest rate and the CD's term, which can range from a week to several years.

Certificate of deposit (CD) | Details |

Closing price
The closing price of a stock, bond, option, or futures contract is the last trading price before the exchange or market on which it is traded closes for the day. With after-hours trading, however, the opening price at the start of the next trading day may be different from the closing price the day before. When a security is valued as part of an estate or charitable gift, its value is set at the closing price on the day of the valuation of the estate.

Closing price | Details |

Collateralized mortgage obligation (CMO)
CMOs are fixed-income investments backed by mortgages or pools of mortgages. Unlike a conventional mortgage-backed security, which has an interest rate and maturity date, the pool of mortgages behind a CMO is subdivided into four tranches, each with a different interest rate and what is known as an average life. Owners of the first three tranches receive regular payment of principal and interest, while the fourth tranche is a zero coupon where interest accrues but is not paid until maturity.

Collateralized mortgage obligation (CMO) | Details |

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