Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are
backed by claims on property. Collateral trusts bonds are backed by claims on other securities.
Equipment obligation bonds are backed by claims on equipment.
Commercial Paper: Short-term and unsecured promissory notes issued by corporations
with very high credit standings.
Common Stock: Equity investment representing ownership in a corporation; each share
represents a fractional ownership interest in the firm.