Study sets matching "finance terms"

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Study sets matching "finance terms"

Finance Terms
Equity
Free Market
Equalization
Taxation
fairness in the amount of revenue and the services provided f…
supply and demand with no government intervention. true capit…
removes some of the disparities in school revenues and expend…
the simple idea of taxing
Equity
fairness in the amount of revenue and the services provided f…
Free Market
supply and demand with no government intervention. true capit…
12 terms
Finance Terms
Income
Expense
Salary
Deduction
Money that you receive from work.
Money that you spend.
Money that you receive for working. This is a flat rate each…
Money that is taken out of your salary BEFORE you receive you…
Income
Money that you receive from work.
Expense
Money that you spend.
32 terms
Finance Terms Chapter 6
Interest Rate
Production Opportunities
IR vs Q
Time preferences for consumption
rental price of money, cost of obtaining/ raising funds
investment opportunities in cash generating assets
supply increases in low risk and decreases in high risk
customers prefer current consumption, in order to give it up…
Interest Rate
rental price of money, cost of obtaining/ raising funds
Production Opportunities
investment opportunities in cash generating assets
13 terms
Finance terms
CAPM line
SML line
Current Bond Yield formula
effective annual rate
deals more with portfolios and the efficient frontier
deals more with an individual security
annual coupon payment/current price of bond
CAPM line
deals more with portfolios and the efficient frontier
SML line
deals more with an individual security
Finance Terms
payroll
income
deductions
sales tax
total amount paid by a company to employees
monies received through employment and investments
monies subtracted from gross salary for taxes, insurance, etc
money added to cost of purchased goods and services that is l…
payroll
total amount paid by a company to employees
income
monies received through employment and investments
20 terms
Finance Terms
Corporation
Stockholders
Board of Directors
Risk
An entity owned by law
The owners of a corporation, whose ownership, or equity, take…
Group elected by the firm's stockholders and typically respon…
The chance that actual outcomes may differ from those expected.
Corporation
An entity owned by law
Stockholders
The owners of a corporation, whose ownership, or equity, take…
Finance Mid term review
impulse purchase
mixed economy
scarcity
collateral
a purchase made without using a decision making process
businesses and individuals make most economic decisions withi…
consumer wants are greater than the resources available
assets that are given as security to ensure repayment of a loan
impulse purchase
a purchase made without using a decision making process
mixed economy
businesses and individuals make most economic decisions withi…
Finance Terms
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm.
A firm's short-term assets and liabilities.
A business owned by a single individual.
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm.
48 terms
Finance Terms
Discount Rate
Capital Asset Pricing Model (CAPM)
Free Cash Flows (DCF)
WACC - Weighted Average Cost of Capital
The rate at which you choose to discount the future value of…
Used to determine the discount rate for all equity firm. Take…
EBIT x (1-t) + D&A - Capex - Net increase in working capital
Used to find discount rate within DCF analysis. WACC is avera…
Discount Rate
The rate at which you choose to discount the future value of…
Capital Asset Pricing Model (CAPM)
Used to determine the discount rate for all equity firm. Take…
Finance Terms
Systematic Risk
Unsystematic Risk
EV/EBITDA
Topline
Uncertainty to the entire market. Systematic risk consists of…
Type of uncertainty that comes with the company/industry you…
Investors mainly use a company's enterprise multiple to deter…
...
Systematic Risk
Uncertainty to the entire market. Systematic risk consists of…
Unsystematic Risk
Type of uncertainty that comes with the company/industry you…
Finance Terms
budget plan
investment vehicles
net worth
financial statement
a plan that outlines how you want to spend and save your money
a specific investment having attributes that are intended to…
if all of your assets were converted into cash and your liabi…
summary of what you own (assets) and what you owe (liabilitie…
budget plan
a plan that outlines how you want to spend and save your money
investment vehicles
a specific investment having attributes that are intended to…
23 terms
Finance Terms
Stocks
Bonds
Financial System
Equity
A slice of ownership in a company
Is like an IOU in which the borrower agrees to pay regular in…
A network of institutions, markets, and contracts that brings…
The difference between the value of the assets/interest and t…
Stocks
A slice of ownership in a company
Bonds
Is like an IOU in which the borrower agrees to pay regular in…
46 terms
Finance Terms
Security
Financial Asset
Base Claims
Derivatives or Contingent Claims
A name of a financial contract that trades in a financial mar…
Contracts sometimes referred to this, surrenders cash to buy…
Claims where two parties are agreeing to exchange cash flows…
The price and payoffs of these contracts are tightly linked t…
Security
A name of a financial contract that trades in a financial mar…
Financial Asset
Contracts sometimes referred to this, surrenders cash to buy…
28 terms
Finance terms
Revenue expenditure
Assets
Retained profit
Share capital
a cost that is charged as soon as the cost is incurred
resources with economic value
earnings that are not paid out but rather reinvested or used…
funds raised by shares in return for cash
Revenue expenditure
a cost that is charged as soon as the cost is incurred
Assets
resources with economic value
19 terms
Semester Finance Terms
gross income
basic expenses
checking account
saving account
income earned before taxes or deductions are taken out
essential to human survival
an account designed for every day use
an account designed for saving money for a long period of tim…
gross income
income earned before taxes or deductions are taken out
basic expenses
essential to human survival
80 terms
Finance Terms
Yield to Maturity
Securitization
Interest Shortfall
Negative Amortization
The total return anticipated on a bond if the bond is held un…
The process through which an issuer creates a financial instr…
Any interest that has not been paid after the loan payments h…
Negative amortization occurs when the loan payment for any pe…
Yield to Maturity
The total return anticipated on a bond if the bond is held un…
Securitization
The process through which an issuer creates a financial instr…
13 terms
Finance Terms
- Personal interest income... - Real esta…
Personal dividend tax rate
Personal fin. and real assets held for…
Personal Fin. and real assets held for…
Taxed at individuals marginal tax rate
15% or less
Considered short term capital gains and are taxed at the marg…
Taxes at a max rate of 15%, same as dividends
- Personal interest income... - Real esta…
Taxed at individuals marginal tax rate
Personal dividend tax rate
15% or less
125 terms
Finance Test 3 Terms
The difference between the market valu…
The process of valuing an investment b…
The net present value (NPV) rule can b…
The length of time required for an inv…
NPV
Discounted cash flow valuation
An investment should be accepted if the NPV is positive and r…
Payback Period
The difference between the market valu…
NPV
The process of valuing an investment b…
Discounted cash flow valuation
Finance Terms
Absenteeism
Labour productivity
Labour turnover
Wastage
(Number of absent staff)/(Total number of staff) x 100
(Total output)/(Total number of staff)
(Number of staff leavers)/(Total number of staff) x 100
Waste/Output x 100
Absenteeism
(Number of absent staff)/(Total number of staff) x 100
Labour productivity
(Total output)/(Total number of staff)
10 terms
Finance Terms
Current Account
Savings Account
Standing Order
Mortgage
An account with a bank or building society from which money m…
An account where money is deposited
An instruction to a bank by an account holder to make regular…
A legal agreement by which a bank, building society, etc. len…
Current Account
An account with a bank or building society from which money m…
Savings Account
An account where money is deposited
8 terms
Personal Finance Key Terms
Consumer
Credit
Debt
Economy
A person or organization that uses a product or service.
The granting of a loan and the creation of debt; any form of…
An obligation of repayment owed by one party [the debtor/borr…
A system by which goods and services are produced and distrib…
Consumer
A person or organization that uses a product or service.
Credit
The granting of a loan and the creation of debt; any form of…
45 terms
Finance Terms
Buisness Plan
Permanent capital
Creditors
Ordinary share capital
a document that describes a new buisness, explaining to lende…
Does not have to be repaid, like loans
Charges paid before dividends are received by shareholders
money given to a company by shareholders in return for a cert…
Buisness Plan
a document that describes a new buisness, explaining to lende…
Permanent capital
Does not have to be repaid, like loans
Finance Terms
DuPont Analysis
Learning Curve
economies of scale
product innovator
A method of financial statement analysis developed by the DuP…
a graphical representation of the increase in efficiency that…
the inverse relation between average cost and scale of produc…
a firm that develops and sells new or greatly improved produc…
DuPont Analysis
A method of financial statement analysis developed by the DuP…
Learning Curve
a graphical representation of the increase in efficiency that…
Finance Terms
Investment Banking
consumer lending
account rollover
mutual funds
financial intermediary that performs a variety of services. t…
...
...
...
Investment Banking
financial intermediary that performs a variety of services. t…
consumer lending
...
55 terms
Finance Terms
10
20
30
40
education fund
operations & maintenance fund
debt service fund
transportation fund
10
education fund
20
operations & maintenance fund
Finance Terms
interest
credit
money
ROI
a fee paid for the use of someone else's money
buying something now and paying for it later
the medium of exchange used for goods and services
the most important concept in business; Return on Investment
interest
a fee paid for the use of someone else's money
credit
buying something now and paying for it later
9 terms
FInance Terms
usury
Deed in Lieu of foreclosure
PITI
Estoppel Cert
setting a high rate of interest
allows lender to buy property
principal... interest... tax... insurance... 4 components of a mortgage…
Makes loan financial info avail to new buyers of a mortgage
usury
setting a high rate of interest
Deed in Lieu of foreclosure
allows lender to buy property
24 terms
Finance: Terms
asset
budget
compound interest
consumer
anything of value that is owned by an individual
a monthly plan fr how you are going to save and spend your in…
interest paid on an investment and on any interest previously…
a person or organization that purchases a product or service
asset
anything of value that is owned by an individual
budget
a monthly plan fr how you are going to save and spend your in…
8 terms
Finance Terms
Balance
Withdrawal
Deposit
Teller
How much money is in your account
Take money out of your account
Put money into your account
A bank employee
Balance
How much money is in your account
Withdrawal
Take money out of your account
Finance Terms
Depreciation
EBIT
Diversifiable Risk
Portfolio Diversification
...
...
...
...
Depreciation
...
EBIT
...
18 terms
Finance terms
CAFR
CFD
TOT
GAAP
Comprehensive Annual Financial Report
Communities Facilities District
Transient Occupancy Tax
Generally Accepted Accounting Principles
CAFR
Comprehensive Annual Financial Report
CFD
Communities Facilities District
Finance Terms
Agency Cost
ask price
bid price
capital market security
cost incurred by the principal (eg shareholder) because of th…
the price at which a dealer (or other buyer) is willing to se…
the price a dealer (or other buyer) offers to pay for a secur…
medium and long-term securities such as bonds, comon stock, a…
Agency Cost
cost incurred by the principal (eg shareholder) because of th…
ask price
the price at which a dealer (or other buyer) is willing to se…
119 terms
Personal Finance Terms
Asset
Balanced budget
Banks
Benefits
Items that one owns; they can be financial or non-financial i…
Government revenues equal expenditures.
Corporations chartered by state or federal government to offe…
Something that is favorable to the decision maker.
Asset
Items that one owns; they can be financial or non-financial i…
Balanced budget
Government revenues equal expenditures.
17 terms
Finance Terms
opportunity cost
interest
interest rate
investment
The benefits you could have received by taking an alternative…
The fee for using someone else's money. For example, if a per…
The percentage at which interest is charged or paid. For exam…
Anything that is purchased with the hope that it will generat…
opportunity cost
The benefits you could have received by taking an alternative…
interest
The fee for using someone else's money. For example, if a per…
10 terms
Finance Terms
sales tax
income tax
property tax
According to the Constitution, one rea…
money paid to the government when something is purchased
money people pay to the government from what they earn at the…
money paid to the government on homes, buildings, and land ow…
general welfare
sales tax
money paid to the government when something is purchased
income tax
money people pay to the government from what they earn at the…
22 terms
Finance Chapter 1: Terms
Capital budgeting
Capital structure
Debt and Equity as Contingent Claims
A firm as $100 in debt. If the value o…
-The management of a firm's long-term investments... - The proce…
-The mixture of a firm's debt and equity financing... -Deals wit…
Debt is a promise to repay... Equity gets everything else
1. ... 2. ... 3. ... 4.
Capital budgeting
-The management of a firm's long-term investments... - The proce…
Capital structure
-The mixture of a firm's debt and equity financing... -Deals wit…
84 terms
Finance Terms
Reinstate
Junior Trust Deed
Equity
Notice of Default
Bring current and restore
Any trust deed that is recorded after a first trust deed, and…
value remaining in property after payment of all liens; the d…
A notice to a defaulting party that there has been a nonpayme…
Reinstate
Bring current and restore
Junior Trust Deed
Any trust deed that is recorded after a first trust deed, and…
56 terms
Personal Finance Terms Final Review
401(k)
annual fee
annual percentage rate (APR)
Asset
A retirement savings plan funded by employees and often match…
A yearly fee associated with some financial accounts.
The yearly interest rate charged on outstanding credit card b…
Anything of material value owned by an individual or company
401(k)
A retirement savings plan funded by employees and often match…
annual fee
A yearly fee associated with some financial accounts.
Finance terms
expected return
portfolio
portfolio weight
systemic risk
return on a risky asset expected in the future, subtract risk…
group of assets such as stocks and bonds help by an investor.
percentage of a portfolio's total value in a particular asset
A risk that influences a large number of assets. Also called…
expected return
return on a risky asset expected in the future, subtract risk…
portfolio
group of assets such as stocks and bonds help by an investor.
17 terms
Personal Finance- Budgeting Terms
Balanced Budget
Budget
Luxury goods
Discretionary income
a budget is balanced when current expenditures are equal to i…
A plan for making and spending money
goods that have special qualities that make them more expensi…
Disposable income available for spending and saving after an…
Balanced Budget
a budget is balanced when current expenditures are equal to i…
Budget
A plan for making and spending money
20 terms
Personal Finance: Budgeting Terms
Balanced Budget
Budget
Deficit
Discretionary income
a budget is balanced when current expenditures are equal to r…
A plan for making and spending money
An excess of federal expenditures over federal revenues.
Disposable income available for spending and saving after an…
Balanced Budget
a budget is balanced when current expenditures are equal to r…
Budget
A plan for making and spending money
8 terms
Finance Terms
Withdrawals
Expense
Sale on account
Revenue
Assets taken out of a business for the owner's personal use
A decrease in owner's equity resulting from the operation of…
A sale of which cash will be received at a later date
An increase in owner's equity resulting from the operation of…
Withdrawals
Assets taken out of a business for the owner's personal use
Expense
A decrease in owner's equity resulting from the operation of…
17 terms
finance terms
If a bond is trading above par value
If a bond is trading below par value
new issue
price risk
it is said to be a premium bond... Coupon rate > Market Interest…
it is said to be a discount bond... Market Interest Rate > Coupo…
a newly issued bond
Risk of a decline in bond's price due to increase in interest…
If a bond is trading above par value
it is said to be a premium bond... Coupon rate > Market Interest…
If a bond is trading below par value
it is said to be a discount bond... Market Interest Rate > Coupo…
11 terms
Finance terms
Bond price
Current yield
Yield to call
Yield to maturity
It is the PV of a FV cash flow m
The coupon as a percentage of the market price.
This is where the bond price has been calculated to the call…
Discount rate which equates PV of future cash flows with the…
Bond price
It is the PV of a FV cash flow m
Current yield
The coupon as a percentage of the market price.
Finance terms
ETF
Jobs in buy side
Fixed income portfolios invest in
derivatives
An ETF, or exchange traded fund, is a marketable security tha…
portfolio managers: who invest money on their behalf of clien…
Bonds
include options, warrants and futures
ETF
An ETF, or exchange traded fund, is a marketable security tha…
Jobs in buy side
portfolio managers: who invest money on their behalf of clien…
23 terms
Finance Terms
Asset
Balance Sheet
Break Even Point
Revenue
Something of value; a resource; an advantage
A financial statement that reports assets, liabilities, and o…
point at which total revenue and total cost are equal
money that an organization receives from its business
Asset
Something of value; a resource; an advantage
Balance Sheet
A financial statement that reports assets, liabilities, and o…
Finance Terms
APR - annual percentage rate
Auto insurance
Balance
Budget
The yearly interest rate charged on outstanding credit card b…
Insurance designed to financially protect a driver, and often…
The amount of money in a savings or checking account, or the…
A plan for future spending and saving, based on estimated inc…
APR - annual percentage rate
The yearly interest rate charged on outstanding credit card b…
Auto insurance
Insurance designed to financially protect a driver, and often…
Finance Terms
Less Save Invest Pay Off
Loan
Mortgage
Interest
3 "Laws"... Of Financial Security... A.) Spend ____ than you earn.…
Money we borrow (and promise to pay back).
A loan to purchase a home or other real estate.
A charge made by a lender for the use of money.
Less Save Invest Pay Off
3 "Laws"... Of Financial Security... A.) Spend ____ than you earn.…
Loan
Money we borrow (and promise to pay back).
finance terms
Annual fee
Annual percent rate
Credit limit
Outstanding current balance
An annual (yearly) fee charged by a credit card company each…
The term annual percentage rate of charge (APR), correspondin…
Credit limit refers to the maximum amount of credit a financi…
You must pay at least this amount by the due date every month…
Annual fee
An annual (yearly) fee charged by a credit card company each…
Annual percent rate
The term annual percentage rate of charge (APR), correspondin…
finance terms
Sole Proprietorship (ch 1)
Partnership (ch 1)
Limited Partnership (ch 1)
Limited liability Company (ch 1)
a business owned by one person who has unlimited liability fo…
A business with at least two owners who have unlimited liabil…
A partnership with two kinds of owners: general partners who…
A firm with one or more owners in which there is limited liab…
Sole Proprietorship (ch 1)
a business owned by one person who has unlimited liability fo…
Partnership (ch 1)
A business with at least two owners who have unlimited liabil…
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