Definition of Bull CD, Bear CD

Bull CD, Bear CD

A bull cd pays its holder a specified percentage of the increase in return on a specified
market index while guaranteeing a minimum rate of return. A bear cd pays the holder a fraction of any fall in
a given market index.

Bear

An investor who believes a stock or the overall market will decline. A bear market is a prolonged period
of falling stock prices, usually by 20% or more. Related: bull.

Bearer bond

Bonds that are not registered on the books of the issuer. Such bonds are held in physical form by
the owner, who receives interest payments by physically detaching coupons from the bond certificate and
delivering them to the paying agent.

Bear market

Any market in which prices are in a declining trend.

Bear raid

A situation in which large traders sell positions with the intention of driving prices down.

Bull

An investor who thinks the market will rise. Related: bear.

Bull-bear bond

Bond whose principal repayment is linked to the price of another security. The bonds are
issued in two tranches: in the first tranche repayment increases with the price of the other security, and in the
second tranche repayment decreases with the price of the other security.

Bull market

Any market in which prices are in an upward trend.

Bull spread

A spread strategy in which an investor buys an out-of-the-money put option, financing it by
selling an out-of-the money call option on the same underlying.

Bulldog bond

Foreign bond issue made in London.

Bulldog market

The foreign market in the United Kingdom.

Bullet contract

A guaranteed investment contract purchased with a single (one-shot) premium. Related:
Window contract.

Bullet loan

A bank term loan that calls for no amortization.

Bullet strategy

A strategy in which a portfolio is constructed so that the maturities of its securities are highly
concentrated at one point on the yield curve.

Bullish, bearish

Words used to describe investor attitudes. bullish refers to an optimistic outlook while
bearish means a pessimistic outlook.

Certificate of deposit (CD)

Also called a time deposit, this is a certificate issued by a bank or thrift that
indicates a specified sum of money has been deposited. A cd bears a maturity date and a specified interest
rate, and can be issued in any denomination. The duration can be up to five years.

Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.

Euro CDs

cds issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all Euro cds
are issued in London.

Lock-up CDs

cds that are issued with the tacit understanding that the buyer will not trade the certificate.
Quite often, the issuing bank will insist that the certificate be safekept by it to ensure that the understanding is
honored by the buyer.

Variable rate CDs

Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
date, the coupon on the cd is adjusted to reflect current market rates.

Yankee CD

cd issued in the domestic market, typically New York, by a branch of a foreign bank.

bear market

A market in which stock or bond prices are generally
falling.

bull market

A market in which stock or bond prices are generally rising.

Bear Market

A prolonged period of falling stock market prices.

Bull Market

A prolonged period of rising stock market prices.

Certificate of Deposit (CD)

A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit.

OECD

Organization for Economic Cooperation and Development, consisting of most of the world's developed economies.

Staff Accounting Bulletin (SAB)

Interpretations and practices followed by the staff of the Office of the Chief Accountant and the Division of Corporation Finance in administering the disclosure
requirements of the federal securities laws.

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