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20 Cards in this Set
- Front
- Back
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Form 10-K.
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Form 10-K is the annual audited financial report to the SEC. It may be used in lieu of the annual report to shareholders.
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Form 8-K
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Form that is used to report newsworthy events to the SEC, thereby making them available to the public.
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Form 10-Q
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Contains unaudited financial statements for all companies of less than 75 million.
QUARTERLY report that must be filed within 40 days of each. ONLY 3 a year as the 10K takes the place of the 4th quarter |
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Present Value
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PV= FV/ (1+r)^t
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Rule of 72
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divide 72 by interest rate and will tell you how long it will take to double your money.
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Real Rate of Return
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The real rate of return is the actual return less the inflation rate as measured by the CPI.
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If interest rates fall, which of the following bonds would be most affected?
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Thus, long-term bonds with low coupons will react more to rate changes than other bonds. Conversely, short-term bonds with high coupons will react the least to changes in interest rates.
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NPV and IRR important facts
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YTM of a bond reflects its IRR
The investment is a good one if it has a positive NPV NPV is generally considered more important than IRR |
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Beta
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Measures the volatility of a given stock or portfolio relative to the overall stock market.
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Standard Deviation
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Is a measure of the volatility of an investments projected returns
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risk free rate = what?
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the 90 day treasury bill rate
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Duration: Def. and general Characteristics
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Time in years it takes for a bond to pay for itself
The lower the coupon the greater the bonds duration Longer the bonds maturity the greater the bonds duration. For coupon bonds, duration is less than the bonds maturity. |
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Business Risk
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Is the highest for investors whose portfolios contain stock in only one issuer or in lower rated bonds.
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Large Cap
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S&P 500
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Mid Cap
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S&P 400
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Small Cap
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Russell 2000
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International Stocks
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EAFE
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Forward Contract
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Forward contracts are customized between the parties and traded OTC, which makes them less liquid.
Forward contracts do not require margin. |
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Future Contracts
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A type of derivative
Futures are exchange-traded, therefore, are more liquid and transparent. Futures require daily margining. |
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discounted cash flow
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The total value of an investment's anticipated cash flows in today's dollars
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