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12 Cards in this Set

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A method for a corporation to borrow money from an individual.
Bonds
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.
Loan
A method for a corporation to obtain capital through selling shares of ownership.
Stock
An individual who buys stocks and bonds is referred to as.
Investor
Principle of a loan
The money borrowed
Principle
Original amount lent, borrowed or invested.
What is the duty of the Security and Exchange Commission?
To regulate the stock exchange and disclose truthful financial information.
What are the 5 types of risks when investing?
Financial Risk, Liquidity Risk, Inflation Risk, Fraud Risk, Market Risk.
What are the types of ownership?
Sole Proprietorship, Partnership, Limited Partnership, and Corporation.
What are the types of corporations, how do they function?
Open Corporation- Company sells stock, people can invest. Corporation is required by law to disclose its financial corporation.
What is buying on the Margin?
Using the stock on your portfolio as a collateral for borrowing money from your broker.
Short Selling
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.