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38 Cards in this Set
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- Back
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Before investing in stock, you should definitely check how solvent the company is? Companies with high debts may find it hard to pay their bills. |
Liquidity risk |
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The government changes taxes all the time and hence taxes may increase or decrease in the particular industry where you invested. The changes in taxation can affect the stock price. |
Taxability risk |
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The risk can be escalated if the business is not doing well. |
Business risk |
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The open market or global market interest rates change from time to time. |
Interest Rate Risk |
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There are a number of regulations imposed in the different industries which must also be termed as the risk involved in stocks. |
Regulatory Risk |
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With an increase in inflation, the price of raw material will increase, which can affect the production cost. |
Inflationary Risk |
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Many companies face problems due to social and political risks. |
Social and Political Risk |
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The risk that the company who issued the bond won't be able to pay the interest or repay the principal at maturity and may find it hard to buy/sell goods. |
Credit Risk |
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Many companies who deal across nations or the companies involved in import/export may face a problem with increased dollar price. |
Currency and exchange rate risk |
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It is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he is involved. |
Market risk |
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Is mandated to formulate policies and recommendations on issues concerning the securities market as well as advise congress and other government agencies on all aspects of the securities market. |
Securities and Exchange Commission (SEC) |
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who is the present SEC chairman? |
Emilio Benito Aquino |
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How many years will the SEC chairman will serve? |
Seven years |
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When was Emilio Benito Aquino assumed the office? |
June 7, 2018 |
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In graphics design, the logo is classified as a combination mark in that it fuses an icon and some text into a visual beacon. |
THE SEC LOGO |
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The shape depicts the SEC's core values. It also suggests balance, cohesion and communication. |
Hexagon |
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What are the principal elements of the logo? |
Hexagon, three rising building, and diamond |
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The bars represent the corporations, the SEC, and the investors. |
Three Rising Buildings |
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Each side of the ________ corresponds to the people who make up the agency working together towards the achievement of its mission and vision. |
Diamond |
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What are the subliminal elements of the logo? |
Shield, Gold bars, Philippine flag |
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The logo is reminiscent of a shield symbolizing the protection that the SEC provides to investors. |
Shield |
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The two bars on both sides are shaped as _______ denoting wealth and prosperity. |
Gold bars |
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The three shades of the logo |
Philippine flag |
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What is the official color of SEC |
Green |
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Green signifies..... |
Life, growth and harmony |
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Are securities that represent a debt owed by the issuer to the investor. |
Bonds |
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Periodic interest payment. |
Coupon payment |
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The rate of interest that the issuer must pay. |
Coupon rate |
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What are the long term bonds? |
Agency bonds, Municipal bonds, Corporate bonds. |
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Security issued by government-sponsored enterprises (GSEs ) |
Agency bonds |
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Securities issued by local, county, and state governments. |
Municipal bonds |
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When large corporations need to borrow for long periods of time. |
Corporate bonds |
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Do not have specific assets, backed by "full faith and credit" of the issuer. |
General obligation bonds |
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Backed by a cash flow of a particular revenue generated project. |
Revenue bonds |
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Types of corporate bonds |
Secured bonds, unsecured bonds, junk bonds |
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Ones with collateral attached. Mortgage bonds are used to finance a specific project. |
Secured bonds |
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Debentures are long-term unsecured bonds by the general credit worthiness of the issuer. |
Unsecured bonds |
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When companies ran into financial difficulties, their bond ratings would fall. |
Junk bonds |
