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22 Cards in this Set
- Front
- Back
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final prospectus
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the SEC approved prospectus that is distrubted to investors
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underwriting syndicate
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a group of financial institutions that work together to underwrite a security
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accredited investors
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sophisticated investors that meet certain SEC established criteria
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due diligence
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checking the validity of all the important information the firm provided to potential buyers
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market maker
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an investment bank that buys or sells a particular security
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bid-ask spread
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the difference between the price an investment bank will buy a security for and the price it will sell the security for
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street name
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the registered name of the broker that has purchased a security for an investor
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margin trading
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buying securities partly with borrowed money
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full-service broker
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a broker that offers research staff, individual financial planning, and a specific broker dedicated to handling your account
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discount broker
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a broker that simply takes and executes customer's orders and do not, in general, offer investment advice
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proprietary trading
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when an investment bank invests its own funds
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arbitrage
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the act of making money by exploiting price differences of the same security on different markets
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prime broker
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the broker that hedge funds use
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venture capital private equity
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private equity that helps fund different stages of company development
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buyout private equity
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private equity that takes over primary ownership of the company
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commitments
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when an investor agrees to provide up to a given amount of capital for the private equity capital investments as needed
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drawdown
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the investment stake of limited partners that is used for individual equity placements
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carried interest
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the incentive portion of a private equity manager's compensation
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seed financing
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capital used to fund the 'idea' stage of a company's development
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startup financing
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capital used to develop a product and begin marketing
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expansion financing
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capital used to grow the company and expand into other areas
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leveraged buyout (LBO)
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a buyout where a portion of the funds used are borrowed
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