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30 Cards in this Set

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