A feature of a bond that denotes the amount of interest due and the date that the payment will be made.

A "convertible security" is a security—usually a bond or a preferred stock—that can be converted into a different security—typically shares of the company's common stock. In most cases, the holder of the convertible determines whether and when to convert. In other cases, the company has the right to determine when the conversion occurs.

One one-hundredth (.01) of a percentage point. For example, eight percent is equal to 800 basis points.

Interest earned on a security but not yet paid to the investor.

Bonds that can be redeemed or paid off by the issuer prior to the bond's maturity date.

The investor sells one bond and uses the proceeds to buy another bond, often at the same price.

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The risk that principal repayment will occur earlier than scheduled, forcing the investor to reinvest at lower prevailing rates.

The unscheduled partial or complete payment of the principal amount outstanding on a loan, such as a mortgage, before it is due.

Liquidity generally refers to how easily or quickly a security can be bought or sold in a secondary market. Liquid investments can be sold readily and without paying a hefty fee to get money when it is needed.

A stock’s liquidity generally refers to how rapidly shares of a stock can be bought or sold without substantially impacting the stock price. Stocks with low liquidity may be difficult to sell and may cause you to take a bigger loss if you cannot sell the shares when you want to.

The entity obligated to pay principal and interest on a bond.