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42 Cards in this Set
- Front
- Back
The shared ownership of the business
|
Stock |
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The use of assets for earning income or profit
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Investment |
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The proportion of dividends to shares |
Dividend Share |
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A part of business profit
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Dividend |
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The current selling price of a stock |
Market Value |
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Where inventory can be purchased or sold |
Stock Market |
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The per share amount listed on the company certificate is divided by the company and remains consistent over time. |
Par Value |
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The annual dividend per share |
Stock Yield Ratio |
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The rate per coupon payment period |
Coupon Rate |
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Loans provided to an organization with a promise to payback with interest |
Bonds |
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Give their owners a priority claim whenever a company pays dividends or distributes assets to shareholders |
Preferred Stocks |
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Is a class of stocks that represents equity ownerships in a corporation |
Common Stocks |
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It gives the issuer the opportunity to repurchase the bonds prior to maturity |
Call option |
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Specify __________________ on which par value must be paid
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Maturity Date |
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Payment at the maturity of the bond also called par value or maturity value |
Face Value |
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The interest payment paid to the bond holder |
Coupon |
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Short term issues that mature within one year |
Money market |
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The rate required in the market on a bond |
Yield to Maturity |
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Bonds that mature in installment |
Serial bonds |
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Intermediate term issues that mature between one and ten years |
Notes |
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A type of bond that makes no coupon payments but instead is issues at a considerable discount to par value |
Zero coupon bonds |
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That mature at a single specified future date |
Term Bonds |
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Is the amount paid for the use of another amount of money called the principal amount or simply principal |
Interest |
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Is the unit of time which the principal is loaned, or the length of time the principal is borrowed |
Term |
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Refers to the amount earned for one year calculated by multiplying the principal by the interest rate |
Simple Interest |
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It is expressed in terms of percent and is debates ans stated as rate of the principal involved per annum |
Interest |
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Is also the amount earned for one year calculated by multiplying the principal by the interest rate |
Compound Interest |
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Is the base in which interest is computed |
Principal |
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Is the multiplier expressed as percent of the principal to be paid each term |
Interest Rate |
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The original principal minus the compound amount |
Compound Interest |
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The accumulated amount of a given principal at the end of a given time interval |
Compound Amount |
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y |
Current Yield of Bond (Pv) (r) / (Pp)
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So |
Total Amount of Devidend (P) (St) |
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t = |
time I/(Pv) (r) |
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Pv |
Par Value I/ (r) (t) |
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r |
Interest Rate (Pp) (y) / (Pv) |
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Pv |
Par Value (Pp) (y)/(r) |
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(P) |
Devided Per Share So/St |
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I = |
Periodic Interest (Pv) (r) (t)
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Pp |
Purchased Price (Pv) (r)/ (y) |
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r = |
rate I/ (Pv) (t) |
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St |
Total Number of Shares So/P |