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25 Cards in this Set
- Front
- Back
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Financial Capital
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Money
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Real Capital
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Long-term Plant and Equipment
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Capital Structure Theory
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Study of relative importance of debt and equity.
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Inflation
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Increase of Prices
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Disinflation
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Slowing down of price increases
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Credit Default Swaps CDS
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A financial swap agreement in which the seller agrees to compensate the buyer in the event of a loan default.
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Sole Proprietorship
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Represents a single person ownership, simplicity of decision making, and low organizational and operating costs.
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Partnership
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A form of partnership in which two or more partners are involved.
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Articles of Partnership
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An agreement between partners.
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Limited Liability Partnership
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A special form of partnership to limit liability for most of the partners.
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Corporation
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A form of ownership in which a separate legal entity is created.
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Articles of Incorporation
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Vehicle in which a corporation is formed.
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Sub-chapter S Corporation
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Income is taxed only once as direct income to the stockholders.
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Agency Theory
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Examines the relationship between the owners and managers of a firm.
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Institutional Investors
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Large investors such and pension or mutual funds.
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Shareholder Wealth Maximization
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Process of achieving the highest possible value for a firm in the marketplace.
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Insider Trading
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Using information not available to the public in order to profit from trading in a company's common stock.
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Financial Markets
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A place for interaction between lenders and borrowers regarding people, institutions and corporations.
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Public Financial Markets
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Markets in which national, state, and local government raise money for highways, education, welfare, and other public activities.
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Corporate Financial Markets
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Markets in which corporations raise money.
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Money Markets
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Competitive markets for securities with maturities of one year or less.
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Capital Markets
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Competitive markets for equity securities or debt securities with maturities of more than one year.
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Primary Markets
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The market for the raising of new funds opposed to trading securities already in existence.
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Secondary Markets
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The market for securities that have already been issued.
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Restructuring
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Process that can take many forms in a corporation, such as changes in the capital structure due to changes in the liabilities and equity on a balance sheet.
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