bondholder someone who owns bonds and receives the interest payments

capital gain a financial gain from buying an asset, like a share of stock or a house, and later selling it at a

higher price

certificate of deposit (CD) a mechanism for a saver to deposit funds at a bank and promise to leave them at

the bank for a time, in exchange for a higher interest rate

checking account a bank account that typically pays little or no interest, but that gives easy access to money,

either by writing a check or by using a “debit card”

compound interest an interest rate calculation on the principal plus the accumulated interest

corporate bond a bond issued by firms that wish to borrow

corporate governance the name economists give to the institutions that are supposed to watch over top

executives in companies that shareholders own

corporation a business owned by shareholders who have limited liability for the company’s debt yet a share of
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