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16 Cards in this Set
- Front
- Back
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Finance 3 major areas
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Investment & financial markets
Financial mgmt of companies Banking stystem |
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Financial assets
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have value because of claims to future cash flows
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Real assets
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Tangible assets, including equiptment, land etc.
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Securities
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aka collateral, or a financial asset…an investment.
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financial market
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a regulated market that brings together borrowers and investors
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a collection of securities is called...
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a portfolio
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companies finance the purchase of assets through...
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bonds (debt financing), common shares (equity financing), lease financing
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The finance dept...
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manages companies money.
provide financial input to decisions. ensure efficient money use. |
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the executive in charge of the finance dept...
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is called the CFO
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raising money and handling financial relationships with outsiders is the responsibility of...
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the treasury dept.
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accounting...
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is the language of finance.
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proprietorships..
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have a difficult time raising money for startup and growth.
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Corporations can raise money through...
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selling shares
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Shareholders….
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receive dividends from the company, and annual reports of progress.
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a stakeholder...
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has a vested interest in a company's well being.
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the conflict of interest between managers and shareholders is known as...
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the agency problem
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