A securities market is an arrangement for buying and selling of securities. A negotiable certificate of deposit is a certificate of deposit issued by a large bank, where this certificate can be traded among investors. Eurodollar certificates of deposits are CDs denominated in U.S. dollars and are issued by U.S. banks in foreign countries. Capital market securities are long-term securities issued by corporations and governments.
Equity is the ownership interest in a business enterprise.
Preferred dividends are generally fixed or stated, whereas common dividends are paid at the discretion of the board of directors. Indebtedness is a loan of funds, usually for a specific period of time. Notes and bonds are promises to repay borrowed funds and to make periodic interest payments. Debentures are debt backed only by the general credit of the issuer. Interest on U.S. government debt is not taxed by the states.