PF ch. 22
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15 terms
Terms | Definitions |
|---|---|
 Cooperations | Business with many owner called stockholders |
| Taxable Income | The amount of gross income that remains after normal business expenses are deducted, upon which taxes are based |
| Stocks | Shares ownership in a cooperation |
| Bonds | Certificates issued by a business that indicate the buyer has lent the business money; written pledges issued by governments and cooperations to repay a specific amount of money with interest at a certain time in return for lending them the money |
| Underwriting Commission | An amount of money paid to an investment banker for helping a business distribute stocks or bonds |
| Commercial Loans | Loans made to business rather than individuals |
| Maturity Value | The total amount that must be repaid on a loan, including the principal borrowed and the interest owed |
| Prime Rate | The lowest rate of interest availible for commercial loans at a given time |
| Treasury Bill | A bill that can be purchased from the federal Gov. in various amounts and that pays interest. It is actually a loan to the Gov.. Also known as the "T-Bill" |
| Discount | The difference between the face value and the maturity value of a bond or Treasury Bill |
| Face Value | The amount of money printed on a bond or Treasury Bill that you receive on its maturity date |
| Yield | Rate of return on a stock, a bond or treasury bill, or savings account earned by an investor after a certain period of time |
| commercial paper | A promissory note issued by various companies that pay interest. They are actually loans to a company |
| merge | to combine one business with another business to form a new business |
| growth expenses | Expenses from expanding a business, such as construction fees and consultation fees |
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