Financial Literacy

Credit in accounting is a journal entry with the ability to decrease an asset or expense but increase capital, liability or revenue.

The coupon rate is a static variable in the bond market. It’s the interest paid by the bond. Most bonds pay out their coupons on a semi-annual basis.

The bid price is the highest price a buyer is willing to pay for an investment. This converges with the sellers ask price.

Ask price is the lowest price an owner is willing to sell any given asset, such as stock. This is the opposite of the actual bid.

An annual financial report is an audited report of a corporation or mutual fund’s condition and performance that is given to shareholders every year.

Bond amortization is known as the gradual decrease of value of an intangible asset over the span of its estimated useful life.

Investment allocation amount is the authorization to incur expenses or liabilities for a specific amount and in a particular time period.

Investment yield is the percentage of return on capital represented by the investment income expressed as a percentage of the price.