Capital Gain or Loss to Bond

Capital gain or loss. The difference between the price at which you buy an investment and the price at which you sell it. Adding the capital gain or loss to the income received from the investment yields the total return.
Capital gain distribution. A mutual fund's distribution to shareholders of the profits derived from the sale of stocks and bonds.
Certificate of deposit. Usually called a CD, a certificate of deposit is a short- to medium-term instrument (one month to five years) that is issued by a bank or savings and loan association to pay interest at a rate higher than that paid by a pass book account. CD rates move up and down with general market interest rates. There is usually a penalty for early withdrawal.
Charting. Another name for technical analysis.
Churning. Excessive buying and selling in a customer's account undertaken to generate commissions for the broker.
Closed-end investment company. Also called a closed-end fund, it is a pooled investment fund that issues a set number of shares and then no more. When the initial offering of shares is sold out, the closed-end fund trades on the secondary market at a price determined by investor supply and demand. For contrast, see the definition of mutual fund.
Cold calling. The practice of brokers making unsolicited calls to people they don't know in an attempt to drum up business.
Commercial paper. Short-term IOUs issued by corporations without collateral. They are bought in large quantities by money-market funds.
Common stock. A share of ownership in a corporation, which entitles its owner to all the risks and rewards that go with it. In case of bankruptcy, common stockholders' claims on company assets are inferior to those of bondholders. For contrast, see preferred stock.
Contingent deferred sales charge. Levied by some mutual funds if a customer sells fund shares within a specified number of years. Instead of charging a traditional front-end load of, say, 5%, a brokerage firm may offer the same fund with a contingent deferred sales load. Customers who sell the fund within the first year pay a 5% load. If they sell in the second year, the charge would be 4%, and so on until the sales-charge period ends.
Contrarian. An investor who thinks and acts in opposition to the conventional wisdom. When the majority of investors are bearish, a contrarian is bullish, and vice versa.
Convertible bond. A bond that is exchangeable for a predetermined number of shares of common stock in the same company. The appeal of a convertible is that it gives you a chance to cash in if the stock price of the company soars. Some preferred sto ck is also convertible to common stock.