Equity
This type of security represents ownership in a corporation
common stock
These securities have fixed interest payments and are considered debt
Bonds
a contract that gives the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price (the strike price) within a certain timeframe
Option
a type of investment fund that is traded on an exchange like stock
An ETF, or Exchange Traded Fund
a not-for-profit organization that serves as a self-regulatory body for the securities industry in the United States. Their primary goal is to protect investors and maintain the integrity of the U.S. securities markets.
FINRA
a type of security that has characteristics of both debt and equity. It generally offers a fixed dividend payment, similar to bond interest, and priority over common stock in dividend payments and asset distribution during liquidation.
preferred stock
These are pools of mortgages sold to investors, often issued by Ginnie Mae or Freddie Mac.
mortgage-backed securities (MBS)
a financial instrument that gives the holder the right, but not the obligation, to buy a company's stock at a specific price (the strike price) within a set timeframe. Unlike options, these are typically issued by the company itself and are often used to raise capital or incentivize investors. They can be attached to other securities, like bonds, to make them more attractive to investors.
Warrants
a time deposit sold by banks, thrift institutions, and credit unions in the United States, typically differ from savings accounts because they have a specific, fixed term before money can be withdrawn without penalty and generally higher interest rates.
Certificate of Deposit (CD)
The sharing of material non-public information regarding a publicly traded company.
Insider Trading
a distribution of profits by a corporation to its shareholders, after which the stock exchange decreases the price of the stock by the dividend to remove volatility.
dividend
a type of structured financial product that pools together various debt instruments like loans, bonds, and other assets. These assets are then repackaged and sold to investors in different tranches, each with varying levels of risk and return.
Collateralized Debt Obligations (CDO)
a way for a publicly traded company to raise capital by offering existing shareholders the opportunity to buy new shares of stock, typically at a discounted price, before offering them to the general public. These are often transferable, allowing shareholders to sell them if they don't want to exercise their purchase option.
Unsecured, short-term promissory notes issued by corporations to finance their immediate needs
Commercial Paper
Regulation adopted by the SEC, establishes a "best interest" standard for broker-dealers when making recommendations to retail customers concerning securities transactions, investment strategies, and account types
Regulation BI