definition of investment terms
Many of the following definition of
investment terms are used somewhere on this site, and all are
used out there in the fast paced world of investing, whether it
is a tax free investing or municipal bonds investing or other
types of investing. Think of this as your place to get up to
speed on financial and investing jargon! This investment
glossary and definition of investment terms is for your
Interest - Interest earned since the last interest
payment date. Accrued interest on bonds purchased in the
secondary market is payable by the buyer of a bond to the
seller. Municipal bonds trade "plus accrued
Tax - A tax based on the value (or assessed value) of
Tax - (or AMT) A federal tax aimed at ensuring that
wealthy individuals, trusts, estates and corporations pay at
least some income tax.
AMT Bond -
(or AMT-Exposed Bond) A private activity bond issued after
August 7, 1986, the interest from which is a preference item to
be included in calculations of personal alternative minimum
- A shorthand reference to 1/100 of 1 percent (.01%) of
- A bond that has no identification as to ownership. Interest
is payable upon receipt of detached semiannual coupons. Bearer
bond issuance was terminated in 1983.
Bond - A
debt contract, bearing interest, which promises to pay a
principal amount due on a specific date.
Note - A municipal note issued in anticipation of
later issuance of bonds, usually from the proceeds of the sale
of the bonds anticipated or of renewal notes.
Bond - A bond that is held by a depository which
remits interest and principal payments to owners as due.
Beneficial ownership is evidenced by book entry only. Today,
most bonds are issued in book entry form.