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Rate of return


Definition: What your investment is earning you, expressed as a percentage of what you have invested, as follows: – Amount of money you earn in one year / Amount of money you have invested – Multiplying the result by 100 to make it into a percentage

Rate of growth


Definition: The degree to which some measure of a company’s performance, such as sales, has increased in a year, expressed as a percentage, as follows: (New value – Old Value) / Old Value * 100  (note: multiplying by 100 turns the result into a percentage)

Quantitative easing (QE)


Definition: Often referred to simply as “QE”, it is an attempt by the Federal Reserve Bank (aka “the Fed”) to stimulate the economy by purchasing financial assets (eg: bonds) that banks own. The Fed hopes that the banks will loan some of this new cash out to people and companies who will spend it and

Put provision


Definition: A feature of a bond that allows it to be turned in to the corporation which issued it for payment of its loan amount (ie, face value) before its scheduled due (ie, maturity) date.

Put option


Definition: The right, but not the obligation, to force another investor to buy one’s shares of a company’s stock for a specific price (ie: the strike price) on or before its expiration date.

Push on a string


Definition: The term used to describe how the Federal Reserve Bank has the power to slow down the economy if it is growing too fast, but not the power to speed it up if it is growing too slowly.



Definition: A company that has previously held an initial public offering (IPO), after which its shares became available for trading among investors who use their brokers to carry out their buying and selling.



Definition: The outstanding balance that remains on a loan. If a loan is only being considered between a borrower and a lender, then it is the amount to be borrowed.

Premium bond


Definition: A bond whose market value has risen above the amount an investor loans to the company in return for receiving the bond. The loan amount goes by many names, including face value and par value, and is usually $1,000. See the definition for bond for an important introduction to bonds.