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22 Cards in this Set
- Front
- Back
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Initial Public Offering (IPO) |
The first offering of a firm's shares to the public (http://ipo.investcom.com) |
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Primary Market |
A market in which newly issued securities are traded |
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Secondary Market |
A market in which existing securities such as debt securities are traded. |
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Institutional Investors |
Professionals responsible for managing large pools of money, such as pension funds, on behalf of their clients. |
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Individual Investors |
Individuals who invest funds in securities |
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Day Traders |
Investors who buy stocks and then sell them the same day |
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Growth Stocks |
Shares of firms with substantial growth opportunities |
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Value Stocks |
Stocks of firms that are currently undervalued by the market for reasons other than the performance of the businesses themselves |
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Income Stocks |
Stocks that provide investors with periodic income in the form of dividends |
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Value of Stock per Share |
= Market Value of Firm / Number of Shares Outstanding (http://www.google.ca/finance) |
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Common Stock |
A certificate issued by a firm to raise funds that represents partial ownership in the firm |
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Preferred Stock |
A certificate issued by a firm to raise funds that entitles shareholders to first priority to receive dividends |
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Range of Returns |
Returns of a specific investment over a given period |
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Standard Deviation |
The degree of volatility in an investment's returns over time. |
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Risk Premium |
An additional return beyond the risk-free rate you could earn from an investment. |
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Default |
Occurs when a company borrows money through the issuance of debt securities and does not pay either the interest or the principal. |
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Asset Allocation |
The process of allocating money across financial assets (such as mutual funds, stocks, and bonds) with the objective of achieving a desired return while maintaining risk at a tolerable level |
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Portfolio |
A set of multiple investments in different assets |
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Insider Information |
Non-public information known by employees and other professionals that is not known by outsiders. It is illegal to use insider information. |
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Correlation |
A mathematical measure that describes how two securities' prices move in relation to one another |
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Income Trust |
A flow-through investment vehicle that generates income and capital gains for investors |
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Real Estate Investment Trust |
An income trust that pools funds from individuals and use that money to invest in real estate |
