Security: related pages
Equity
The stake a businesses owners have in it; assets minus liabilities.
Bonds
A bond is a security that pays interest. The majority of bonds have a fixed life at the end of which the principal is returned.
Hybrid security
A hybrid security or hybrid instrument is a security that has characteristics of both debt and equity.
Gilts
British government bonds. A very wide range of gilts are in issue at any given time.
Eurobonds
Bonds issued in a currency other than the issuer’s home currency. Usually outside the issuer’s home country as bearer bonds.
PIBS (permanent interest bearing shares)
Securities issued by building societies that pay fixed interest. Often not redeemable.
Preference shares
Shares that pay fixed dividends: payment of both dividends and capital takes priority over that of ordinary shares.
Strips
A type of stop loss order that essentially becomes a limit order once a price threshold is crossed.
Commercial paper
Unsecured short term corporate debt.
Ordinary shares
The most common form of equity. Shares with equal entitlements to share in profits and to vote.
Convertible bonds
Bonds which can be exchanged for shares on or before maturity.
Asset backed securities
Debt securities secured against specific cash flows.
Catastrophe bonds
Securities whose value falls if certain events take place. An alternative to insurance and a way of securitising insurance.
Copyright Graeme Pietersz © 2005-2019