• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/26

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

26 Cards in this Set

  • Front
  • Back

Money Market

Very short-term, highly liquid, relatively low-risk debt instruments

U.S. Treasury Bills (T-Bills)

Short-term government securities issued at a discount from face value and returning the face amount at maturity

Certiface of Deposit (CD)

A bank time deposit: Interest and principal paid back on certain date

Commercial Paper(CP)

Short-Term unsecured debt issued by large corporations

Bankers' acceptance

An order to a bank by a customer to pay a sum of money at a future date



Eurodollars

Dollar-denominated deposits at foreign banks or foreign branches of American banks



Repurchase Agreements (Repos)

Short-term sales of government securities with an agreement to repurchase the securities at a higher price



Federal Funds

Funds in the accounts of commercial banks at the Federal Reserve Bank

LIBOR(London Interbank Offer Rate)



Lending rat among banks in the London Market

Treasury Notes or Bonds

Debt obligations of the federal government with original maturities of one year or more

Inflation-Protected Treasury Bonds (TIPS)

Principal amount is adjusted in proportion to increases in the CPI

Municipal Bond (Munis)

Tax-exempt bonds issued by state and local government

Equivalent Taxable Yield of Tax-Exempt Bond

r(1-t)=rm

Corporate Bonds

Long-term debt issued by private corporations typically paying semiannual coupons and returning the face value of the bond at maturity

Common Stocks

Ownership shares in a publicly held corporation.


Shareholders have voting rights and may receive dividends.

Characteristics of Common Stock

1. Residual claim: stockholders are the last in line of all those who have a claim on assets and income of the corporation


2. Limited Liability: you lose what you invested



Preferred Stock

Nonvoting shares in a corporation, usually paying a fixed stream of dividends

ADRs

traded in U.S. markets that represent ownership in shares of a foreign company

Dow Jones Industrial Average (DJIA)

30 large blue-chip corporations




computed since 1896




Measures performance on a portfolio that holds one share of each stock so it is a price-weighted average

Standard & Poor's Composite 500 (S&P 500)

500 firms




Market Value-weighted index

Equally Weighted Indexes

An index computed from a simple average of returns

Foreign Stock Indexes

FTSE, Nikkei, DAX, Hang Seng

Derivative Assets

A security with a payoff that depends on the prices of other securities

Call Option

The right to buy an asset at a specified price on or before a specified expiration date

Put Option

The right to sell an asset at a specified price on or before a specified expiration date

Futures Contract

Obliges traders to purchase or sell an asset at an agreed-upon price at a specified future date