Investing Glossary: C

call option: A contract that gives the holder the right to buy a particular asset at a specified price at any time prior to the expiration of the option.

callable bond: A bond that the issuer can redeem before its maturity date. The bondholder is often paid a premium when the bond is called.

candlestick: A chart that shows the daily high, low, opening, and closing prices for a security over a specified time period.

capital gain: The profit from the sale of an investment at a price that’s higher than the purchase price.

certificate of deposit; CD : An interest-bearing investment issued by a bank. CDs are typically available with maturities ranging from three months to five years.

churning: Buying and selling securities by a broker for the sole purpose of generating commissions.

covered call: A call option written by an investor who already owns the underlying shares. If you write a covered call and the option is exercised by the holder, then you would just deliver the stock to the holder.