The right to purchase a specific number of shares at a stated price within a fixed period of time. For each call option purchased, there is also a seller. This is often someone who owns the related common stock. Accounting definitions vary somewhat, but one calculation is net income plus depreciation and amortization, which are noncash charges against earnings. An investment, often made with a bank, that generally provides a fixed yield for a given period of time, usually six months to five years.
CDs usually carry penalties for early withdrawal of funds.
Also, tax treatment of income from a CD can be a significant consideration. Commercial paper Short-term corporate borrowing that is backed by the general creditworthiness of the issuer rather than by specific assets. Commercial paper is typically sold to financial institutions and mutual funds. Coupon bonds These are payable to the bearer, with title passing by delivery without endorsement. Interest is received by clipping the attached coupons as they mature and presenting them for payment.