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15 Cards in this Set

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  • Back
generally, a tock certificate, bond, note, debenture, warrant, or other document given as evidence of an ownership interst in a corporation or as a promise of repayment by a corporation
an equity (ownership) interest in a corporation, measured in units of shares
a certificate that evidences a corporate (or government) debt. It is a security that involves no ownvership interest in the issuing entity
bond indenture
a contract between the issuer of a bond and the bondholder
common stock
shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control, earnings. and net assets. Shares of common stock are lowest in priority with respect to payment of dividends and distribution of the corporation's assets on dissolution
preferred stock
classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporations dissolution
red herring
a preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with teh SEC. The name derives from the red legend printed across the prospectus stating that the registration has been filed but has not become effective
tombstone ad
an advertisement, historically in a format resembling a tombstone, of a securities offering. The ad tells potential investors where and how they may obtain a prospectus
accredited investor
in the context of securities offerings, "sophisticated" investors, such as banks, insurance companies, investment companies, the issuer's executive officers and directors, and persons whose income or net worth exceeds certain limits
SEC rule 10b-5
a rule of the SEC that makes it unlawful, in connection with the purchase or sale of any security, to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be misleading
insider trading
the purchase or sale of securities on the basis of info that has not been made available to the public
a person who receives inside info
bounty payment
a reward (payment) given to a person or persons who perform a certain service, such as informing legal authorities of illegal actions
investment company
a compnay that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio
mutual fund
a specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio