These securities pay a specific interest rate over a given period of time, after which the owner receives back his or her initial investment. An increase in an investment's value. The size of the company issuing a stock as measured by its share price times the number of shares outstanding. Cash Available money, cash or currency. A negotiable or transferable receipt payable to a depositor for funds deposited in a bank.
CDs pay interest for a fixed period of time.
Commercial Paper Promissory notes sold to the public by large corporations to meet their short-term needs for funds. Commercial notes can be bought and sold daily with no loss of interest. This liquidity may be an important consideration when assets are invested for shorter periods of time. A major component of any money market fund is commercial paper. Compounding The periodic process by which interest or return is applied not only to one's savings or investment, but also to previous interest or return amounts.