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13 Cards in this Set

  • Front
  • Back
Financial engineering
Creation of new securities or financial processes.
Sole proprietorship
A business owned by a single individual.
Capital markets
Financial markets where long-term debt and equity securities are bought and sold.
Agency problem
The possibility of conflicts of interest between the shareholders and management of a firm.
Working capital managemen
Planning and managing the firm's current assets and liabilities.
Capital structure
The mix of debt and equity maintained by a firm.
Regulatory dialectic
The pressures financial institutions and regulatory bodies exert on each other.
Derivative securities
Options, futures, and other securities whose value derives from the price of another, underlying, asset.
Capital budgeting
The process of planning and managing a firm's investment in long-term assets.
A business created as a distinct legal entity owned by one or more individuals or entities.
What long-term investments should the firm take?
Capital Budgeting Decision
How should the firm manage its everyday financial activities?
Capital Management Decision
Where will the firm get the long-term financing to pay for the investment?
Capital Structure Decisison