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Debenture
A debenture is an unsecured bond. Most bonds issued by corporations are debentures, which are backed by its reputation rather than by any collateral, such as the company's buildings or its inventory. Although debentures sound riskier than secured bonds, they aren't when they're issued by well-established companies with good credit ratings
Debt-to-equity ratio : A company's debt-to-equity ratio indicates the extent to which the company is leveraged, or financed by credit. A higher ratio is a sign of greater leverage. You find a company's debt-to-equity ratio by dividing its total long-term debt by its total assets minus its total debt. You can find these figures in the company's income statement, provided in its annual report.
Derivatives
"Derivatives are financial products, such as futures contracts and options.. Most of derivatives’ value is based on the value of an underlying security, commodity, or other financial instrument.
An equity option’s value is determined by the relationship between its strike price and the value of the underlying stock, the time until expiration, and the stock's volatility. Listed derivatives are traded on organized exchanges or markets. Other derivatives are traded over-the-counter (OTC) and in private transactions."
Diversification
"Diversification is an investment strategy in which you spread your investment among different sectors, industries, and securities within a number of asset classes. A well-diversified stock portfolio, for example, might include small, medium, and large cap domestic stocks, stocks in multiple sectors or industries, and even international stocks.
The goal is to protect the value of your overall portfolio in case a single security or market sector takes a serious downturn. Diversification can help insulate your portfolio against market and management risks without significantly reducing the level of return you want. But finding the diversification mix that's right for your portfolio depends on your age, your assets, your tolerance for risk,and your investment goals. Also one should be careful about over diversification. "
Dividend yield
If you own dividend-paying stocks, you figure the current dividend yield on your investment by dividing the dividend being paid on each share by the share's current market price. For example, if a stock whose market price is $35 pays a dividend of 75 cents per share, the dividend yield is 2.14% ($0.75 ÷ $35 = .0214, or 2.14%). Yields for all dividend-paying stocks are reported regularly in newspaper stock tables and on financial websites.Dividend yield increases as the price per share drops and drops as the share price increases. But it does not tell you what you're earning based on your original investment or the income you can expect to earn in the future. However, some investors seeking current income or following a particular investment strategy look for high-yielding stocks.
Duration
"As the term suggests, it is expressed in the form of number of years and measures a bond's sensitivity to change in interest rates. To be specific, it measures the change in market value of security due to 1% change in interest rates.
Unlike the maturity date, which tells you when the issuer has promised to repay your principal, duration, which takes the bond’s interest payments into account, helps you to evaluate how volatile the bond’s price will be over time. Basically, the longer the duration - expressed in years - the more volatile the price. So a 1% change in interest rates will have less effect on the price of a bond with a duration of 2 than it will on the price of a bond with a duration of 5."
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