INVESTMENT JARGONS AND WHAT THEY MEAN (PART 3)
CAPITAL LOSS
The amount by which the proceeds from a sale of a security are less than its purchase price.

For example:
If Kwame again bought 1,000 Unilever shares on 4th January 2021 at a price of GHS 8.29 per share. If he sells all his shares on 10th March 2021 at a price of GHS 7.47 per share. Assuming there are no fees charged, the capital loss of Kwame will be (7.47*1,000) – (8.29*1,000)
= 7,470 – 8,290
= -820gh

This means that the capital loss for Kwame is GHS 820
INTEREST RATE

The fixed amount of money that an issuer agrees to pay an investor. It is most often a percentage of the face value of an investment.

Example
You want to buy a house in the next 5 years and you make an investment that pays you 10% per annum. The 10% you earn is what the investment company is paying as interest on the investment you have made.