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36 Cards in this Set
- Front
- Back
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security markets
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financial marketplace for stocks and bonds.
2 functions : assist businesses find long term funding. and give investors a place to buy investments |
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initial public offering (IPO)
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1st offering of a corperations stock.
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investment bankers
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specialists who assist in the issue and sale of new securities
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institutional investors
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big orgs like pension funds, mutual funds and insurance companies, that invest their own funds or funds of others
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stock exchange
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and org whose members can buy/ exchange investments (securities)
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over the counter market
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a way to exchange stocks not listed in national exchanges
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NASDAQ
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a nationwide electronic system that links dealers across the nation so they can buy and sell securities
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securities and exchange commission
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fed agency that has responsibility for regulating the various stock exchanges
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prospectus
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condensed version of economic and financial info that a company must file with SEC before issuing stock. must b sent to prospective investors
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stock
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shares of ownership in a company
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bond
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a corporate certificate that says a person has lent money to a firm or a govt
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maturity date
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the exact date the issuer of a bond must pay the principle to the bond holder
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debenture bonds
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unsecured bonds
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sinking fund
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a reserve acct where bong issure puts money so they can eventually pa off bond
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stock broker
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regestered rep who buys and sells stocks for clients
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diversification
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buying dif investments to spread risk of investing
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capital gains
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positive dif between price of stock and its sale price
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stock spilts
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gives stock holders2 or more shares of stock for each they own
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buying stock on margin
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purchasing stock by borrowing some of the purchase cost from a brokerage firm
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junk bonds
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high risk , high interest bonds
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mutual bonds
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and org that buys stocks and bonds and then sells shares in those securities to the public
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exchange-traded funds (ETFs)
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collections of stocks and bonds that are traded on exchanges but are trades more like individual stocks than mutual funds
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THe Dow
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the average of 30 selected stocks.. to give an indication of the direction of the stock market over time
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program trading
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giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid losses
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when stocks go down
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bonds go up
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money
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anything that ppl generally accept as payment for goods and services
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barter
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the direct trading of goods or services for other goods or services
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money supply
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the amount of money the federal reserve bank makes available for ppl to buy goods and services
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M-1
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money that can be accesed quickly and easily (coins, paper money, checks, travelers checks)
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m2
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m1 plus money that may take a little more time to get, savings accts, money markets accts mutual funds, CDs
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pension funds
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amnt of money put aside by a corp to cover retirement costs for members
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non banks
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financial orgs that accept no deposits bu offer many services gven by regular banks
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credit unions
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non profit . offer full variety of banking services to members
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letter of credit
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a promise by the bank to pay the seller a given amnt if cerain conditions are met
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bankers acceptance
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a promise that a bank will pay come specified amnt at a particular time
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international monetary fund
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org that assists the smooth flow of money amoung nations
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