The terms provided in this section are intended to empower the user to interact with a trained/licensed individual in an informed manner. The terms are not designed to replace the service of these individuals. The ECSRC strongly recommends that the user seeks professional advice before taking action on any investment matter.

Financial Planning 

A comprehensive evaluation of an investor's current and future financial state is undertaken during financial planning.

Future Value 

The future value concept is the reverse of the?present value?method. Future value refers to the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Holding Period 

Holding period refers to the length of time an asset is held by its owner.

Indenture Agreement 

An indenture is a formal agreement, also called a Deed of Trust, between an issuer of bonds and the bond holder.

Internal Rate of Return 

The internal rate of return is a discount rate at which the present value of all future payments would equal the present price of an investment.


An issuer is a legal entity that has the power to issue and distribute a security (debt, equity, etc.).


A liability is a claim on the assets of a company or individual, excluding ownership equity.

Lump sum 

A lump sum is a large payment of money received, or made, at one point in time instead of in periodic payments.


When referring to debt securities, maturity signifies reaching the date at which a debt instrument is due and payable.

Net Worth 

Net worth represents the amount by which assets exceed liabilities.

Par Value 

In terms of common stocks, par value may represent: 1) the original investment behind each share of stock; or 2) the assigned value derived from the dollar accounting value of common stock on a company's balance sheet.


Any measure calculated on a per-dollar-invested basis, such as the holding period yield indicates the percentage return of each dollar invested.

Personal Balance Sheet 

A personal balance sheet is an individual's account of his/her assets and liabilities at a stated point in time.

Present Value 

Present value refers to the value today of a future payment or stream of payments, discounted at some compound interest or discount rate.


To redeem an investment in stocks or bonds means to exchange or cash in your holdings for money.


A security is an investment instrument that signifies an ownership position in a corporation, a creditor relationship with a corporation or government body or rights to ownership.

Shares (also referred to as stocks) 

A share or stock is a financial instrument in the form of equity ownership.


The tenor of an investment refers to the period of time during which the conditions or terms of the contractual agreement are to be carried out.


Generally, yield refers to the return on an investor's capital investment.

Yield to Call 

Yield to call is the yield on a bond assuming the bond will be redeemed by the issuer at the first?call date?specified in the?indenture agreement.

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