Certificate of Deposit (CD)

Certificate of Deposit (CD)

  • Posted: Feb 23, 2015
  • By:
  • Comments: Comments Off on Certificate of Deposit (CD)
Share This
« Back to Glossary Index

A negotiable certificate in bearer form issued by a commercial bank as evidence of a deposit with that bank which states the maturity value, maturity rate and interest rate payable. CDs vary in size with maturities ranging from a few weeks to several years. CDs may normally be redeemed before maturity only by sale on the secondary market but may also be redeemed back to issuing bank through payment of a penalty.

« Back to Glossary Index

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry