Study sets matching "banking investing"

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Study sets matching "banking investing"

Banking and Investing
Why do people use checking accounts?
What are the parts of a check?
Endorsement
Blank endorsement
- reduces need to carry large amounts of cash... - convenience... -…
1. Date... 2. Payee... 3. Dollar amount in numbers... 4. Dollar amount…
In banking terms, signature on the back of a check that trans…
To receive cash... - only sign your name
Why do people use checking accounts?
- reduces need to carry large amounts of cash... - convenience... -…
What are the parts of a check?
1. Date... 2. Payee... 3. Dollar amount in numbers... 4. Dollar amount…
31 terms
Banking and Investing
Why do people use checking accounts?
What are the parts of a check?
Endorsement
Payee
- reduces need to carry large amounts of cash... - convenience... -…
1. Date... 2. Payee... 3. Dollar amount in numbers... 4. Dollar amount…
In banking terms, signature on the back of a check that trans…
Person who the check is written to
Why do people use checking accounts?
- reduces need to carry large amounts of cash... - convenience... -…
What are the parts of a check?
1. Date... 2. Payee... 3. Dollar amount in numbers... 4. Dollar amount…
25 terms
Investing and Banking
Common Stock
Saving bonds
Prospectus
Electronic Funds Transfer
Stocks that shares entitling their holder to dividends that v…
debt securities issued by the U.S. Department of the Treasury…
a printed document that advertises or describes a company in…
Movement of money electronically from one financial instituti…
Common Stock
Stocks that shares entitling their holder to dividends that v…
Saving bonds
debt securities issued by the U.S. Department of the Treasury…
35 terms
Banking and Investing
certified check
cashier's check
money order
traveler's check
personal check certified by the bank by using a stamp
bank guarantees to pay the amount on the check, more secure
a way to spend money (like a check) to someone, best for peop…
functions as cash, best used when traveling
certified check
personal check certified by the bank by using a stamp
cashier's check
bank guarantees to pay the amount on the check, more secure
5 terms
Investing and banking
Interest
Assets
Liabilities
Principle
money paid on principle
things owned
things owed
money borrowed
Interest
money paid on principle
Assets
things owned
18 terms
banking/investing
liquidity
federal Reserve
inflation
deflation
a markets ability to facilitate an asset being sold quickly w…
central banking system of the United States.
is a sustained increase in the general price level of goods a…
occurs when the inflation rate falls below 0% (a negative inf…
liquidity
a markets ability to facilitate an asset being sold quickly w…
federal Reserve
central banking system of the United States.
banking/investing
liquidity
federal reserve
inflaton
deflation
Ability to easily convert financial assets into cash without…
A national banking system, established in 1913, that controls…
an economic condition in which it takes more and more money t…
A situation in which prices are declining
liquidity
Ability to easily convert financial assets into cash without…
federal reserve
A national banking system, established in 1913, that controls…
18 terms
Banking/Investing
liquidity
Federal Reserve
Inflation
Deflation
Availability of resources to meet short-term cash requirements.
A quasi-governmental organization formed to regulate the mone…
A continuous rise in the price of goods and services
A situation in which prices are declining
liquidity
Availability of resources to meet short-term cash requirements.
Federal Reserve
A quasi-governmental organization formed to regulate the mone…
banking/investing
Liquidity
Federal Reserve
Inflation
Deflation
How Easy You Can Get Your Money
A quasi-governmental organization formed to regulate the mone…
A general and progressive increase in prices
A situation in which prices are declining
Liquidity
How Easy You Can Get Your Money
Federal Reserve
A quasi-governmental organization formed to regulate the mone…
18 terms
Banking/ Investing
liquidity
federal reserve
inflation
deflation
Easy to access; cash-checking-savings-CD-investments.
The country's central banking system, which is responsible fo…
A general increase in prices and fall in the purchasing value…
Reduction of the general level of prices in an economy.
liquidity
Easy to access; cash-checking-savings-CD-investments.
federal reserve
The country's central banking system, which is responsible fo…
18 terms
Banking/Investing
Liquidity
Federal Reserve
Inflation
Deflation
How quickly and easily an asset can be converted into cash
(WW) 1913 , independent agency in the federal executive branc…
A continuous rise in the price of goods and services
A decrease in the general level of prices.
Liquidity
How quickly and easily an asset can be converted into cash
Federal Reserve
(WW) 1913 , independent agency in the federal executive branc…
25 terms
Banking & Investing
Common Stock
Savings Bonds
Prospectus
Electronic Funds Transfer
Stock that ordinarily has no preference in the matter of divi…
Debt securities issued by the U.S. Department of the Treasury…
A printed document that advertises or describes a school, com…
Electronic transfer of money from one bank account to another…
Common Stock
Stock that ordinarily has no preference in the matter of divi…
Savings Bonds
Debt securities issued by the U.S. Department of the Treasury…
12 terms
Banking, Insurance, & Investing (Money & Banking)
Depository Institution
Non Depository Institution
Deposit
Commercial Bank
- Financial Institution that accept deposit are known as depo…
- Financial Institution that offer other services, but do not…
- A deposit is a sum of money placed or kept in a bank accoun…
- Financial Institution that provides services, such as accep…
Depository Institution
- Financial Institution that accept deposit are known as depo…
Non Depository Institution
- Financial Institution that offer other services, but do not…
20 terms
Banking, Insurance, Investing (Investment Basics)
Investing
SEC
NYSE
NASDAQ
- the commitment of money or capital to purchase financial in…
- Securities and Exchange Commission an independent federal a…
- Established in 1792 on Wall Street in New York City, this s…
-National Association of Securities Dealers Automated Quotati…
Investing
- the commitment of money or capital to purchase financial in…
SEC
- Securities and Exchange Commission an independent federal a…
20 terms
Banking and Investing
Central Bank
Commercial Bank
Internet Bank
Interstate Bank
Financial Institution that oversees a nations monetary system…
Financial Institution owned by investors that focuses on busi…
Has no physical bank branch
The expansion of banking across state lines.
Central Bank
Financial Institution that oversees a nations monetary system…
Commercial Bank
Financial Institution owned by investors that focuses on busi…
27 terms
Banking and Investing
Compound returns
Retirement Plans
401k and 403b
Traditional IRA
earn money by re investing
401k, 403b, IRA (roth), IRA (traditional)
earned through your employers, contributions made before tax,…
don't pay taxes on that money until you retire
Compound returns
earn money by re investing
Retirement Plans
401k, 403b, IRA (roth), IRA (traditional)
banking and investing
Liquidely
Federal Reserve
Inflation
deflation
is how easily you can get your money
A quasi-governmental organization formed to regulate the mone…
A general and progressive increase in prices
A situation in which prices are declining
Liquidely
is how easily you can get your money
Federal Reserve
A quasi-governmental organization formed to regulate the mone…
25 terms
Banking and Investing
Common Stock
Savings Bonds
prospectus
electronic funds transfer
shares entitling their holder to dividends that vary in amoun…
a bond issued by the government and sold to the general publi…
a printed document that advertises or describes a school, com…
is the electronic transfer of money from one bank account to…
Common Stock
shares entitling their holder to dividends that vary in amoun…
Savings Bonds
a bond issued by the government and sold to the general publi…
25 terms
Banking and Investing
Common Stock
Saving Bonds
Prospectus
Electronic Funds transfer
Shares intitling their holder to dividence that vary in amoun…
An affordable, safe and convenient way for Americans to save.
Printed document that advertises or describes a school, comme…
The electronic transfer of money from one bank account to ano…
Common Stock
Shares intitling their holder to dividence that vary in amoun…
Saving Bonds
An affordable, safe and convenient way for Americans to save.
13 terms
Banking and Investing
What is the Federal Reserve
Fractional Reserve Banking
Everyone asks for money back
3 types of deposites made to banks
- Nations central bank ... - Keeps a share of their money
- Bank keep 10% of your money in savings ... - Loans out the rest
The bank would have to scramble to find money
- Checkable... - Savings... -Time
What is the Federal Reserve
- Nations central bank ... - Keeps a share of their money
Fractional Reserve Banking
- Bank keep 10% of your money in savings ... - Loans out the rest
investing and banking
Which best describes how an investor m…
Which best describes the role that gov…
Since stocks can be traded online, whi…
Which can be traded in a commodities m…
not selling
they both receive capital
not markets regulate tr
oil
Which best describes how an investor m…
not selling
Which best describes the role that gov…
they both receive capital
Investment Banking
Leveraged Buyout (LBO)
Crack Spread
Contango
Backwardation
The acquisition of another company using a significant amount…
The "crack spread" is the difference between cost of crude oi…
"Contango" is when the prices along a futures curve rises suc…
Backwardation is the opposite of a contango. It occurs when p…
Leveraged Buyout (LBO)
The acquisition of another company using a significant amount…
Crack Spread
The "crack spread" is the difference between cost of crude oi…
75 terms
Investment Banking
Comparable Companies Analysis
Target
EV/EBITDA
P/E
Method for valuing companies
Collection of assets
Enterprises value to earnings before interest, taxes, depreci…
Price to earnings
Comparable Companies Analysis
Method for valuing companies
Target
Collection of assets
55 terms
Investment Banking
Accretion
Affirmative Covenants
Auction
Blind Pool
Adjustment of the difference between the price of the bond bo…
Things the borrower promises to do.
A system where potential buyers place competitive bids on ass…
A limited partnership or stock offering with no stated invest…
Accretion
Adjustment of the difference between the price of the bond bo…
Affirmative Covenants
Things the borrower promises to do.
investment banking
Income statement formula
Balance sheet formula
Statement of cashflows formula
Retained earnings formula
Revenues - COGS - Expenses = NI
Assets = liabilities + shareholders equity
Beginning cash + CF from operations + CF from investing + CF…
NI-Dividends = RE
Income statement formula
Revenues - COGS - Expenses = NI
Balance sheet formula
Assets = liabilities + shareholders equity
Investment Banking
Walk me through the 3 financial statem…
Income Statement: What are the major l…
How would you get started on projectin…
Balance Sheet: What are the major line…
The 3 financial statements are the Income Statement, the Bala…
Revenue, COGS, SG&A, Operating Income, Pretax Income, Net Inc…
Pull 10-K and equity research reports. Earnings presentations…
Cash, Accounts Receivable, Inventory, PPE, Accounts Payable,…
Walk me through the 3 financial statem…
The 3 financial statements are the Income Statement, the Bala…
Income Statement: What are the major l…
Revenue, COGS, SG&A, Operating Income, Pretax Income, Net Inc…
51 terms
Investment Banking
Tell me about yourself
Walk me through your resume
Why Investment Banking?
Why Bank XYZ?
Growing up, I was always interested in science and technology…
I was born and raised in India, where I got my bachelors in E…
My entire professional career has been in the silicon valley,…
Goldman Sachs, its about the people I have met and the dedica…
Tell me about yourself
Growing up, I was always interested in science and technology…
Walk me through your resume
I was born and raised in India, where I got my bachelors in E…
Investment Banking
Leveraged Buyout (LBO)
Crack Spread
Contango
Backwardation
The acquisition of another company using a significant amount…
The "crack spread" is the difference between cost of crude oi…
"Contango" is when the prices along a futures curve rises suc…
Backwardation is the opposite of a contango. It occurs when p…
Leveraged Buyout (LBO)
The acquisition of another company using a significant amount…
Crack Spread
The "crack spread" is the difference between cost of crude oi…
36 terms
Banking, Savings, and Investing
1913
1929
1930's
In 1933 President Roosevelt announced…
Congress created the Federal Reserve System, or Fed as the na…
The banking industry was over extended when the great depress…
Run on the banks: a rush by depositors to withdraw their fund…
A bank holiday: a brief period during which every bank in the…
1913
Congress created the Federal Reserve System, or Fed as the na…
1929
The banking industry was over extended when the great depress…
Banking and Investing
Savings account
Certificate of deposit
Money market deposit accounts
Money market mutual fund
Insured by FDIC or NCUA... May have limited number of transactio…
Insured by FDIC
minimum balances are higher than savings ... atm feature ... Insure…
liquid... not insured!!
Savings account
Insured by FDIC or NCUA... May have limited number of transactio…
Certificate of deposit
Insured by FDIC
Investment Banking
How does ??? impact the three financia…
If a company incurs $10 (pretax) of de…
A company makes a $100 cash purchase o…
Same question as the previous but the…
Varieties of this question are some of the most common techni…
The most common version of this type of question. Note that t…
First Year: Let's assume that the company's fiscal year ends…
First Year: Income Statement: No depreciation and no interest…
How does ??? impact the three financia…
Varieties of this question are some of the most common techni…
If a company incurs $10 (pretax) of de…
The most common version of this type of question. Note that t…
Banking and Investing
Common stock
Savings Bonds
Prospectus
Credit Union
stock that you typically think of; guarantees voting rights i…
and IOU that guarentees pay. you buy a bond that gives the co…
a printed document that advertises or describes a school, com…
a nonprofit-making money cooperative whose members can borrow…
Common stock
stock that you typically think of; guarantees voting rights i…
Savings Bonds
and IOU that guarentees pay. you buy a bond that gives the co…
10 terms
Money,Banking, Saving and Investing
Commercial Loans
Mortgage Loans
Social Security
Company retirement plans
A debt-based funding arrangement that a business can set up w…
a loan advanced to allow a person to buy a house or other pro…
(FDR) 1935, guaranteed retirement payments for enrolled worke…
traditional 401(k) and roth 401(k)
Commercial Loans
A debt-based funding arrangement that a business can set up w…
Mortgage Loans
a loan advanced to allow a person to buy a house or other pro…
15 terms
Investment Banking
∆CA - ∆CL
NI + D&A - Cap Ex - Increase in Workin…
EBIT * (1-tax rate) + D&A - Cap Ex - I…
(EBITDA - D&A) * (1-tax rate) + D&A -…
Net Working Capital
FCF from NI
FCF from EBIT
FCF from EBITDA
∆CA - ∆CL
Net Working Capital
NI + D&A - Cap Ex - Increase in Workin…
FCF from NI
Investment banking
securities
loan sharking
capital markets
money markets
Investment instruments issued by companies goveernments or ot…
lichwa... ​charge very ​large ​amounts of ​money for ​lending ​…
rynki kapitałowe... Markets where debt or equity securities are…
Markets for short-term debt securities, with a maturity of a…
securities
Investment instruments issued by companies goveernments or ot…
loan sharking
lichwa... ​charge very ​large ​amounts of ​money for ​lending ​…
18 terms
Investment Banking
investment banking
merger
acquisitions
stocks
has 3 main types of activities:... 1. Helping corporate custome…
combination of two or more business enterprises to form a sin…
the purchase of one organization by another. the acquired com…
A type of security that signifies ownership in a corporation…
investment banking
has 3 main types of activities:... 1. Helping corporate custome…
merger
combination of two or more business enterprises to form a sin…
Banking & Investments
Compound Interest
Simple Interest
Risk
Return
An account where you can earn interest on the interest you ha…
When you earn interest only on the amounts you have deposited…
The chance that an investment will decrease in value.
The profit you have the potential to receive from an investme…
Compound Interest
An account where you can earn interest on the interest you ha…
Simple Interest
When you earn interest only on the amounts you have deposited…
40 terms
Investment Banking
Three Financial Statements
Enterprise Value
Widely Used Trading multiples
P/E Ratio
Income Statement, Balance Sheet, Cash Flow Statement
Equity Value + All claims on Debt- cash & cash equivalents... En…
EV multiples: EV/EBITDA, EV/Revenue... EV/EBIT... Equity Value Mult…
Share Price/EPS
Three Financial Statements
Income Statement, Balance Sheet, Cash Flow Statement
Enterprise Value
Equity Value + All claims on Debt- cash & cash equivalents... En…
26 terms
Investment banking
Fixed exchange ratio
Floating exchange ratio
stock for stock offer price per share
cash and stock offer price per share
# of stocks are set and value fluctuates based on share price…
based on constant value, # of shares fluctuate
exchange ratio x acquirer's share price
cash offer per share + [exchange ratio x acquirer's share pri…
Fixed exchange ratio
# of stocks are set and value fluctuates based on share price…
Floating exchange ratio
based on constant value, # of shares fluctuate
19 terms
Financial Literacy - Investing/Banking
Federal Reserve
FDIC
NCUA
Commercial Bank
A national banking system, established in 1913, that controls…
Federal Deposit Insurance Corporation: ... Insured bank deposits…
The National Credit Union Administration (NCUA) is the indepe…
A privately owned financial institution that accepts deposits…
Federal Reserve
A national banking system, established in 1913, that controls…
FDIC
Federal Deposit Insurance Corporation: ... Insured bank deposits…
30 terms
Investment Banking
What is the premise behind comparable…
Company A and Company B are peer compa…
For spreading a comparable company's f…
Is EBITDA typically reported as a line…
Similar companies provide a highly relevant reference point f…
Company A could have higher profit margins, higher levels of…
The cash flow statement, and, in some cases, it is shown on t…
No. While it may be disclosed in a footnote or supplemental m…
What is the premise behind comparable…
Similar companies provide a highly relevant reference point f…
Company A and Company B are peer compa…
Company A could have higher profit margins, higher levels of…
88 terms
Investment Banking
Acquisition
Bailout
Boutique Investment Firm
Debit Financing
The act of one corporation acquiring another by purchasing it…
A loan or offer of money to a business in order to save it fr…
A small investment firm that specializes in a limited number…
A method of raising capital through the sale of bonds , bills…
Acquisition
The act of one corporation acquiring another by purchasing it…
Bailout
A loan or offer of money to a business in order to save it fr…
investment banking
acquisition
bailout
boutique investment firm
debt financing
The act of one corporation acquiring another by purchasing it…
A loan or offer of money to a business in order to save it fr…
A small investment firm that specializes in a limited number…
debt financing
acquisition
The act of one corporation acquiring another by purchasing it…
bailout
A loan or offer of money to a business in order to save it fr…
121 terms
Investment Banking
Primary Valuation Techniques
Comparable Company Analysis steps
P/E ratio
Trailing P/E
- Cash Flow Model... - Transaction Metrics... - Relative Valuation…
1.) Define a set of publicly traded comparable companies.... 2.…
the ratio for valuing a company that measures its current sha…
- uses last year's earnings... - Preferred when foretasted earni…
Primary Valuation Techniques
- Cash Flow Model... - Transaction Metrics... - Relative Valuation…
Comparable Company Analysis steps
1.) Define a set of publicly traded comparable companies.... 2.…
67 terms
Investment Banking
Traditional investment banking
Sales and trading
research
merchant bank
-raises capital (debt and Equity)... -strategic advising service…
-distribution... -sell and trade stocks... -manage firms risk
-analysis and recommendation for stocks... -includes company cov…
makes direct investments in companies using the firms capital…
Traditional investment banking
-raises capital (debt and Equity)... -strategic advising service…
Sales and trading
-distribution... -sell and trade stocks... -manage firms risk
9 terms
Investment Banking
Balance Sheet identity
Net Working capital
Cash Flow identity
Cash flow from assets
Assets = liabilities + shareholders equity
Current assets - current liabilities
Cash flow from assets = cash flow to creditors + cash flow to…
Cash flow from assets = operating cash flow - net capital spe…
Balance Sheet identity
Assets = liabilities + shareholders equity
Net Working capital
Current assets - current liabilities
Investment banking
Investment bank
Investment bankers
Spread
Market makers
They help companies raise long-term funds from investors by u…
They advise companies and governments on when and how place t…
Difference between issuer's price and dealers' one
They hold an inventory of securities and announce buying (bid…
Investment bank
They help companies raise long-term funds from investors by u…
Investment bankers
They advise companies and governments on when and how place t…
20 terms
Investment Banking
Acquisition
Bailout
Boutique investment firm
Debt financing
The act of one corporation acquiring another by purchasing it…
A loan or offer of money to a business in order to save it fr…
A small investment firm that specializes in a limited number…
A method of raising capital through the sale of bonds, bills,…
Acquisition
The act of one corporation acquiring another by purchasing it…
Bailout
A loan or offer of money to a business in order to save it fr…
20 terms
Investment Banking
Acquistion
Bailout
Boutique investment firm
Debt Financing
The act of one corporation acquiring another by purchasing it…
A loan or offer of money to a business in to save it from ban…
A small investment firm that specializes in a limited number…
A method of raising capital through the sale of bonds , bills…
Acquistion
The act of one corporation acquiring another by purchasing it…
Bailout
A loan or offer of money to a business in to save it from ban…
Investment Banking
Futures
Stock
Shares
Bond
financial contracts obligating the buyer to purchase an asset…
a security that represents ownership in a corporation
units of ownership in a corporation or financial asset that p…
a debt investment in which an investor loans money to an enti…
Futures
financial contracts obligating the buyer to purchase an asset…
Stock
a security that represents ownership in a corporation
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