500 Stock Index has a coefficient of 1. Any stock with a Beta greater than 1 is more likely to rise and fall with more volatility than the general market, and a Beta of less than 1 is more likely to rise and fall with less volatility than the general market. Therefore, the bid price is the highest price an investor is willing to pay for the given security. Bond A bond is a debt instrument issued for a period of time with the purpose of raising capital by borrowing from purchasers. When you purchase a bond, you are essentially lending the issuing party your money.
Some bonds are interest bearing and pay the interest periodically.
Government, municipal, and corporate bonds are all available through Morgan Stanley Online. Option Contract A call is an option contract that gives the holder the right to buy a certain quantity of shares of a specified security at a specified price within a specific time period. If you write, or sell, a call without owning the equivalent amount of the underlying stock, that is called an uncovered call. If you write the call and you do own the equivalent amount, then it is called a covered call. A CD pays a contractual rate of interest over a specified period of time.