A call is a right to buy a specified number of shares at a specified price by a fixed date.

An increase in a capital asset's value that is realized when the asset sells for more than the purchase price.

A market in which securities are traded and includes the stock and bond markets. Companies and governments use capital markets to raise funds for their operations. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities.

 

• Central Bank of Trinidad and Tobago (CBTT) - The Central Bank of Trinidad and Tobago's purpose is the promotion of such monetary, credit and exchange policies as would foster monetary and financial stability and public confidence and be favourable to the economy of Trinidad and Tobago.

A type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment. Their money is invested on a pooled basis by an investment manager in return for a fee. A collective investment scheme may also be called a mutual fund. A collective investment scheme provides almost absolute control of the investment to the company pooling and investing the money.

A market in which securities are traded and includes the stock and bond markets. Companies and governments use capital markets to raise funds for their operations. Investors purchase securities in the capital markets in order to extract a return and earn profit on the securities.

 

• Central Bank of Trinidad and Tobago (CBTT) - The Central Bank of Trinidad and Tobago's purpose is the promotion of such monetary, credit and exchange policies as would foster monetary and financial stability and public confidence and be favourable to the economy of Trinidad and Tobago.

Interest calculated on the initial principal and also on the accumulated interest of previous periods of an investment.

• It is when the interest you earn on an investment is added to form the new base on which future interest accumulates.

Compounding is the process by which an investment's interest earnings are re-invested and added to the principal. The interest in the next period is determined based on the principal as well as on the previously re-invested interest. Therefore, the interest on the investment also earns interest.

An act or instance of breaking a law or regulation or of nonfulfillment of an obligation or promise.

A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures.

• Annual interest paid on a bond, usually in semi-annual tranches. Coupon payments are expressed as a percentage of the face value (par) of a bond.

The interest rate on a bond which is calculated by dividing the bond's coupon payment by its face value.

• The coupon rate is the interest rate that the issuer of a bond or other debt security promises to pay during the term of a loan.