\chapter{Preliminaries}
\label{ch:prelimin}

\section{Financial Definitions}

Throughout this paper, some financial terms are used.  Below is provided a list of terms with definitions, also, what each measures in a financial aspect.
\vspace{.25in}
When a corporation offers a stock or bond for sale, or a government offers a bond, the security is known as an \textbf{issue}, and the company or government is the \textbf{issuer.}

\begin{itemize}
\item \underline{Bonds:} A debt instrument issued for a period with the purpose of raising capital by borrowing for the issuer. 
\item \underline{Default:} The inability of a borrower to pay the interest or principal on a debt when it is due
\item \underline{Liquidity:} The asset's ability to be \textit{easily} converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value
\end{itemize}

