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38 Cards in this Set
- Front
- Back
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Investment |
Redirecting resources
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Financial System
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transfer of money between savers and borrowers
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Financial Asset
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Claim on property or income
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Financial Intermediary
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Institution that channels funds
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Mutual Fund
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Pools savings of many individuals and invests
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Diversification
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Spreading out investments
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Portfolio
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Collection of financial assets
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Prospectus
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Investment report
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Return
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Money above and beyond the money initially invested
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Coupon Rate
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Interest rate
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Maturity
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The time payment to a bondholder is due
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Par Value
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Amount an investor pays to buy a bond. will be repaid.
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Yield
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Rate of return on a bond if tge bond were held to maturity
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Savings bond
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bond issued by the US government
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Municipal Bond
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Bond issued by a state or local government
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Corporate Bond
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Bond that a corporation issues
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SEC
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independent agency regulates financial markets and investment companies
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Junk Bond
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A lower rated bond
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Capital Market |
Market which money is lent for longer than a year |
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Money Market |
Market which money is lent for less than a year |
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Primary Market |
Market for selling financial assets redeemed by the original holder |
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Secondary Market |
Market for reselling financial assets
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Share |
Portion of stock |
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Equities |
Ownership in a corporation |
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Capital Gain |
A financial gain for the seller |
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Capital Loss |
A financial loss for the seller |
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Stock Split |
Division of a single share into more than one share |
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Stockbroker |
Links buyers and sellers of stock |
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Brokerage Firm |
A business that specializes in trading stocks |
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Stock Exchange |
Market for buying and selling stock |
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OTC Market |
Electronic marketplace for stocks and bonds |
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Nasdaq |
OTC Securities |
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Futures |
Contracts to buy or sell at a specific date at a price specified today |
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Options |
Contracts that give investors the choice to buy or sell stock |
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Call Option |
Option to buy shares of stocks in the future |
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Put Option |
Option to sell shares in the future |
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Bull Market |
Rise in the stock market |
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Bear Market |
Drop in the stock market |
