INDIVIDUAL INVESTOR Definition

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INDIVIDUAL INVESTOR is a person that buys or sells securities for his/her own account. The individual investor is also called a retail investor or retail shareholder.

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DERIVATIVE CONTRACT is, generally, a financial contract the value of which is derived from the values of one or more underlying assets, reference rates, or indices of asset values, or credit-related events. Derivative contracts include interest rate, foreign exchange rate, equity, precious metals, commodity, and credit contracts, and any other instruments that pose similar risks. See DERIVATIVE.

PURCHASE DISCOUNT is a reduction in the purchase price, allowed if payment is made within a specified period.

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