An equity share, also known as an ordinary share, represents an ownership interest in a company, granting the holder voting rights, dividends, and a claim on assets upon liquidation.
In accounting and finance, an instrument refers to any document or financial asset that represents some form of value, usually a legal document that records a right to pay a sum of money or property. Common examples include promissory notes, checks, bonds, and other financial securities.
The term 'negotiable' has multiple meanings in the contexts of finance, business, and law. It can refer to assets or instruments that can be transferred or sold, as well as mutual agreements or conditions that parties can discuss to reach a satisfactory resolution.
No-par stock is issued without a par value stated in the corporate charter or on the stock certificate. It is also known as no-par-value stock.
Over-the-Counter (OTC) trading refers to financial securities that are traded through a dealer network rather than through formal exchanges such as the New York Stock Exchange (NYSE).
The redemption price is the predetermined value at which a bond or preferred stock can be repurchased or redeemed by the issuer before its maturity date, commonly referred to as the call price.
A stripped coupon refers to a small minimum trading unit of a larger security, where the principal amount and the interest payments have been separated and sold as individual zero-coupon securities.
STRIPS (Separate Trading of Registered Interest and Principal of Securities) are zero-coupon bonds created by separating the interest and principal components of a bond or note and selling them individually.
Treasury Inflation-Protected Securities (TIPS) are U.S. Treasury securities designed to help investors protect against inflation. The principal of TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index (CPI).
