Examlex
The common logical mistake of interpreting association as causation:
Callable Bonds
Bonds that are subject to redemption (buy back) at a stated dollar amount prior to maturity at the option of the issuer.
Common Stock
Shares of ownership in a corporation, giving holders voting rights and a portion of the company's profits through dividends.
Convertible Bonds
Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.
Interest
The cost of borrowing money, represented as a percentage of the principal, paid by the borrower to the lender for the use of the funds.
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