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15 Cards in this Set
- Front
- Back
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security
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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
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stock
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an equity (ownership) interest in a corporation, measured in units of shares
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bond
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a certificate that evidences a corporate (or government) debt. It is a security that involves no ownvership interest in the issuing entity
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bond indenture
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a contract between the issuer of a bond and the bondholder
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common stock
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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
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preferred stock
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classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporations dissolution
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red herring
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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
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tombstone ad
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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
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accredited investor
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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
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SEC rule 10b-5
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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
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insider trading
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the purchase or sale of securities on the basis of info that has not been made available to the public
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tippee
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a person who receives inside info
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bounty payment
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a reward (payment) given to a person or persons who perform a certain service, such as informing legal authorities of illegal actions
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investment company
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a compnay that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio
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mutual fund
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a specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio
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