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20 Cards in this Set
- Front
- Back
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Authorized |
# of shares that are printed |
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Issued |
# of shares sold |
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Treasury |
# of shares sold and bought back |
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Outstanding |
# of shares sold and not bought back |
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Preferred stock Can be: |
Has a guaranteed dividend Can be cumulative or non cumulative |
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Common stock |
# of shares times pars Have vote / bod decides if they get a divided |
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Treasury stock Is a: |
Negative number Contra equity account |
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Companies raise funds by |
Selling stock -ownership -dividends
Issuing bonds Interest payments (tax deductible) No ownership |
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Types of Bonds |
Debentures Secured Term or single payment Serial bonds Callable bonds Redeemable bonds Convertible bonds |
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Debentures or junk bonds |
Unsecured |
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Secured |
Pledge specific assets |
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Single payment bonds |
All the bonds will be repaid on the same day |
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Serial bonds |
Bonds that will mature over a period of time and will be repaid in a series of payments |
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Callable bonds |
Bonds that can be repurchased or called by the issuer of the bond |
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Redeemable bond |
Means that the holder of the bond gets to decide whether to sell it back early or keep it until it matures |
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Market rate is known as |
The effective rate or the bond yield |
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Financial leverage |
Using increased risk to amplify expected return |
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Financial instrument |
A contract we can trade in a market. It represents an asset to one entity and a liability or equity to the other. |
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What are the two main types of financial instruments |
Derivatives or cash instruments |
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Common stock |
A residual income security |
