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30 Cards in this Set
- Front
- Back
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Securites
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Stock, bond, or money market instrument that represents an obligation on the part of the issuer.
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Primacy Market
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Market where new securities issues are first sold to investors
Issuer receieves the proceeds from the sale |
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Investment Banker
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Some who handles new issues of securities
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Secondary Market
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Subsequent owners trade stocks and/ or bonds
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IPO (Initial Public Offering)-
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First sale of a stock
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Common stock
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shares ownership in a corp.
has claims to dividens and capital gains, gets to vote on major decisions, residual claims on assets |
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Preferred Stock-
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Preference in payment of dividens, preference in claims on assets but no voting rights
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STOCK VALUE
Par Value |
Value printed on stock certificate and on balance sheet
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STOCK VALUE
Market Value |
Price the stock is currently selling as
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STOCK VALUE
Book Value |
Taking assets minus liabilities minus the value of preffered stock
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Bond Rating
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AAA least risky bond investments
Junk Bond- very risky investment |
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DOW
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stock market average based on market prices of 30 industrial, 20 transportation, and 15 utility
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Insider Trading
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ILLEGAL securities trading, based on info not available to general public
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Two Ways to make Money on Stocks
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Capital Gain
Dividens |
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Accounting-
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measuring, interpreting, and communicating financial information for internal and external descision making
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Internal
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managers, owners, board of directors, union officials, employees
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External
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potential investors, bankers or creditors, IRS
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Accounting Positions
Public Accountant |
provides accounting services to businesses for a fee
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Accounting Positions
Private Accountant |
works in the accounting department of an orginization
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Accounting Positions
Government Accounting |
(CPA) education, experiance, have to pass CPA Test
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Accounting Equation
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Assets = Liabilities + owners equilty
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Assets
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anything of value owned or leased by the company
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Liabilites
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Anything we owe to creditors
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owners equity
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investment by owners (stock holders and upfront owners) and retained earnings (profits not payed out in dividens)
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balance sheet
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shows financial position of company on a particular day
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Income statement
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shows a company's financial performance over a period of time
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Finance
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business function of planning, obtaining, and managing a company's funds to accomplish its objectives in the most effective possible way
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Financial manager
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employee responsible for developing and implementing the firms financial plan and for determining the most appropriate sources and uses of funds
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Chief Financial officer
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top finance executive of a corp usually reports to the firms ceo
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bonds
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certificates of indebtedness sold to raise long term funds for a corporation or government agency.
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