Bull CD
Categories: Trading, Banking, Managed Funds, Stocks
A certificate of deposit (CD), linked to a stock index, with an interest rate that increases if the associated index increases in value.
Bovine Securities (BS) wanted to appeal to a more conservative client base. Knowing that risk averse people are more likely to invest in fixed income securities than equities, it decided to issue a Bull CD.
This BS CD was certain to appeal to investors who wanted the thrill of profiting from the stock market while taking on much less risk.
Related or Semi-related Video
![Finance: What's the Difference Between Bear and Bull?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.572_770x433.jpg)
Finance: What's the Difference Between B...159 Views
Finance a la shmoop what's the difference between bear and bull? bear
pessimistic bad growly things coming Negative Nancy boo bear...Bull [Bear walking into water]
awesomesauce life's good you take it by the you know horns alright we're gonna
apply bear and bull to markets here but they apply to a whole lot of things and
a bear market is actually technical nomenclature that refers to sustained or [Bear market definition on 100 dollar bill]
prolonged periods of time where stock prices generally just fall...three
four five six seven eight quarters where the market craps the bed down down down
the bear market pattern is different from just a correction when the market
takes just a short term dump and then well you know quickly recovers yeah like [Bear market graph]
it has a bad quarter or two and then starts climbing again well that's not
the big bad bear that's just a correction a bull market is just the
opposite it goes up up up like this guy in his balloon-powered house and that's [House with balloons travels up a stock value graph]
it both are dangerous in the wild but on Wall Street huh you just have to watch
out for the Bears [Bear chasing a woman]