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32 Cards in this Set
- Front
- Back
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Coupon Rate- (A component of a bond)
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the interest rate that a bond issuer will pay to a bondholder
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Maturity ( A conmponent of a bond)
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the time at which payment to a bondholder is due.
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Par Value ( A component of a bond)
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the amount an investor pays to purchase a bond and that will be repaid to the investor at maturity.
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yield
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the annual rate if return on a bond if the bond were held to maturity.
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Saving Bond (Type of Bond)
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low-denomination bond issued by the U.S government
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Municipal Bond (type of bond)
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a bond issued by a state or local government or municipality to finance such improvements as highways, libraries, state buildings, parks and schools.
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Corporate Bond (Type of bond)
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a bond that a corporation issues to raise money to expand its business.
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Securities and Exchange Commission
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an independent agency of the government that regulates financial markets and investment companies.
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junk bond
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a lower-rated, potentially higher-paying bond
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capital market
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MARKET IN WHICH MONEY IS LENT FOR PERIODS LONGER THAN A YEAR.
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MONEY MARKET
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MARKET IN WHICH MONEY IS LENT FOR PERIODS LESS THAN A YEAR.
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primary market
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market for selling financial assets that can only be redeemed by the original holder.
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secondary market
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market for reselling financial assets.
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share
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a portion of stock
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equities
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claims of ownership in a corporation
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capital gain
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the difference between a higher selling price and a lower purchase price, resulting in a financial gain to the seller.
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capital loss
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the difference between a lower selling price and a higher purchase price. resulting in financial loss to the seller.
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stock split
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the division of a single share of stock into more than one share
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stockbroker
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a person who links buyers and sellers of stock.
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brokeage firm
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a business that specializes in trading stocks.
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stock exchange
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a market for buying and selling stocks.
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OTC market
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an electronic marketplace for stocks and bonds
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NASDAQ
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American market for OTC securities
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futures
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contracts to buy or sell at a specific date in the future at a price specified today.
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Options
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contracts that give investors the choice to buy or sell stock, and other financial assets
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call option
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the option to buy shares of stock at a specified time in the future.
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put option
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the option to sell shares of stock at a specified time in the future.
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Bull market
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a steady rise in the market over a period of time
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bear market
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a steady drop in the stock market over a period of time
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The Dow
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index that shows how certain stocks have traded
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Great Clash
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the collapse of the stock market in 1929
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speculation
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the practice of making high-risk investments with borrowed money in hopes of getting a big return.
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