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20 Cards in this Set
- Front
- Back
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The first public offering of a corporation's stock
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INITAL PUBLIC OFFERING (IPO)
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Specialists who assist in the issue and sale of new securities
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INVESTMENT BANKERS
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Large investors-such as pension funds, mutual funds, insurance companies, and banks-that invest their own funds or the funds of others
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INSTITUTIONAL INVESTOR
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A corporate certificate indicating that a person has lent money to a firm
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BOND
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The payment the issuer of the bond makes to the bondholders to pay for use of the borrowed money
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INTEREST
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Exact date the issuer of bond must pay the principal to the bondholder
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MATURITY DATE
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Bonds that are unsecured (i.e., not backed by any collateral such as equipment)
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DEBENTURE BONDS
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A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond
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SINKING FUND
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Shares of ownership in a company
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STOCKS
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Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued
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STOCK CERTIFICATE
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Part of the firm's profits that may be distributed to shareholders as either cash payments of additional shares of stock
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DIVIDENDS
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Stock that gives its owners PREFERENCE in the payment f dividends and an earlier claim on assets than common stockholders if the company is forced out of businsess and its assets sold
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PREFERRED STOCK
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The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm's profits through dividends, if offered by the firm's board of directors
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COMMON STOCK
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An organization whose members can buy and sell (exchange) securities for companies and investors
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STOCK EXCHANGE
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The federal agency that has responsibility for regulating the various exchanges
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SECURITIES AND EXCHANGE COMMISSION (SEC)
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A registered representative who works as a market intermediary to buy and sell securities for clients
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STOCKBROKER
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The positive difference between purchase price of a stock and its sale price
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CAPITAL GAINS
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An action by a company that gives stockholders two or more shares of stock for each one they own
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STOCK SPLIT
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An organization that buys stocks and bonds and then sells shares in those securities to the public
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MUTUAL FUND
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Means buying several different investments alternatives to spread the risk of investing
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DIVERSIFICATION
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