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Certificate of Deposit (CD)

Certificate of Deposit (CD) refers to a negotiable receipt issued by a bank for funds deposited for a period of time. CDs can be purchased or sold prior to their maturity in a secondary market, making them an interest-earning marketable security.


Certificate of deposit (CD) is an interest-bearing note issued by a commercial bank or brokerage firm; a time deposit that pays a higher than average rate of interest to the investor.

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