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12 Cards in this Set
- Front
- Back
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A method for a corporation to borrow money from an individual.
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Bonds
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A method for a corporation to obtain capital that involves borrowing money from a lender and repaying it with interest through installments over a short period of time.
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Loan
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A method for a corporation to obtain capital through selling shares of ownership.
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Stock
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An individual who buys stocks and bonds is referred to as.
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Investor
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Principle of a loan
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The money borrowed
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Principle
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Original amount lent, borrowed or invested.
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What is the duty of the Security and Exchange Commission?
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To regulate the stock exchange and disclose truthful financial information.
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What are the 5 types of risks when investing?
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Financial Risk, Liquidity Risk, Inflation Risk, Fraud Risk, Market Risk.
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What are the types of ownership?
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Sole Proprietorship, Partnership, Limited Partnership, and Corporation.
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What are the types of corporations, how do they function?
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Open Corporation- Company sells stock, people can invest. Corporation is required by law to disclose its financial corporation.
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What is buying on the Margin?
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Using the stock on your portfolio as a collateral for borrowing money from your broker.
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Short Selling
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When one borrows stock from a brokerage firm to sell on the market, and then hope to buy the stock back at a lower price to earn a profit.
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