The amount originally paid for a bond and the amount repaid at maturity. Also see Face Value.

An index fund - Investment fund designed to match the returns on a stock market index.

Bonds with no stated maturity date.

An investment scam which promises exceptionally high rates of returns in a short period of time. A Ponzi schemer will only ask you to invest in something. You won't be asked to take any more action other than handing over your money. He or she will claim to take care of the rest and give you your returns later. The scheme uses new investors' monies to repay previous investors. The scheme inevitably collapses when the promoter runs out of new investors to repay the previous investors.

Combining of assets of different entities, i.e., two or more counties, for efficient investment purposes while maintaining separate accounting trails.

A collection of investments held by an individual or an institution. A portfolio includes financial instruments such as bonds, stocks, cash or mutual funds. The portfolio may be held directly by an investor or it can be managed by a financial professional.

A class of shares that usually does not give the investor voting rights. Preference shares take priority over ordinary shares in the payment of dividends and in the event of a liquidation (selling off of the company's assets).

The amount by which the price of a bond or stock exceeds its original value (par value).

The current value of a future cash flows discounted at an appropriate interest rate or rates.

The amount that is borrowed or lent; the amount of funds originally invested in a security; the Face Value of a bond.

A written promise or pledge by one party to make fixed periodic payments to another party in full by a specific date.

A formal document that provides details about an investment offering for sale to the public. This information would allow an investor to make an informed investment decision.

A shareholder vote on matters that require shareholder's approval.

A company, any of who issued shares are or were part of a distribution, or an offer, to the public.

An option that gives the holder the right, but not the obligation to sell an underlying asset to another party at a fixed price over a specific period of time.

An investment scam which promises exceptionally high rates of returns in a short period of time. New investors are usually asked to bring in new investors into the fold. The scheme uses new investors' monies to repay previous investors. These schemes are sometimes erroneously referred to as pyramid schemes because they start off with a promoter and add successively broader levels, giving the scheme a triangular or pyramid shape. However, there is a subtle difference between the two. The scheme inevitably collapses when the promoter runs out of new investors to repay the previous investors.