Study sets matching "financial markets"

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Study sets matching "financial markets"

8 terms
Financial Markets
capital projects
capital spending
stock
bond
spending on items such as land, buildings, equipment and new…
money spent by a business that will be used over a long perio…
this represents ownership in a corporation. This is also call…
this represents debt financing for an organization. It is a w…
capital projects
spending on items such as land, buildings, equipment and new…
capital spending
money spent by a business that will be used over a long perio…
28 terms
financial markets
inflation
mutual funds
hedge funds
spot market
A general increase in prices and fall in the purchasing value…
A group of investments held in common by many individual inve…
an investment vehicle and a business structure that pools cap…
The market in which foreign currency is traded for immediate…
inflation
A general increase in prices and fall in the purchasing value…
mutual funds
A group of investments held in common by many individual inve…
Financial Markets
Annuity
Diversification
Future
Municipal Bond
A type of investment where money is exchanged for a series of…
The process of spreading investments across a wide range of s…
A contract that requires the buyer to purchase or sell a cert…
A bond issued by the state or local government. The unique be…
Annuity
A type of investment where money is exchanged for a series of…
Diversification
The process of spreading investments across a wide range of s…
12 terms
Financial markets
Equity
Debt
Derivatives
Matching Principle
Ownership interest in an asset with residual e.g. ordinary sh…
Contractual claim to interest payments and repayment of princ…
a synthetic security providing future rights. which is priced…
Short-term assets should be funded with short-term liabilitie…
Equity
Ownership interest in an asset with residual e.g. ordinary sh…
Debt
Contractual claim to interest payments and repayment of princ…
Financial Markets
Default
Notes and Bonds
Treasury Bill
Commercial Paper
failure to make a scheduled payment on time
semi annual / annual coupons... *pay interest twice a year... $ cou…
no coupon / no interest... *pure discount instrument - one CF @…
traditional short term debt - issued by corporation... *Has a T-…
Default
failure to make a scheduled payment on time
Notes and Bonds
semi annual / annual coupons... *pay interest twice a year... $ cou…
Financial markets
Capital/Financial markets
5 global capital markets
Equity market
Debt market
Provide intermediation between surplus units(investors/lender…
1) equity market... 2) debt market (money/bond markets)... 3) forei…
Where the company owners meet
Where the company lenders meet
Capital/Financial markets
Provide intermediation between surplus units(investors/lender…
5 global capital markets
1) equity market... 2) debt market (money/bond markets)... 3) forei…
Financial markets
Bond
Bond relationship of price to interest…
Stock ownership
Analyze a change in stock price and we…
promise to pay a fixed amount of Dollars (Face Value) at a sp…
The price of Bonds determines the interest rate. A higher pri…
share of ownership in the future expected profit stream of a…
As the stock price changes your wealth changes. (No paper Pro…
Bond
promise to pay a fixed amount of Dollars (Face Value) at a sp…
Bond relationship of price to interest…
The price of Bonds determines the interest rate. A higher pri…
35 terms
Financial Markets
Securities
Financial Intermediaries
Australian Securities Exchange (ASX)
Credit
Any form of financial instrument that provides the holder wit…
An institution, such as a bank or building society that holds…
Major share market in Australia where the purchase and sale o…
Loans to individuals, businesses and governments for spending…
Securities
Any form of financial instrument that provides the holder wit…
Financial Intermediaries
An institution, such as a bank or building society that holds…
36 terms
Financial Markets
Financial Markets
Capital Market Efficiency
Efficient Capital Market Does Not Allo…
Economic Efficiency
bring together businesses who need to raise capital with busi…
current market prices of securities fully reflect all availab…
investors to earn abnormal or excess returns; returns are nor…
funds being allocated to their optimal use at the lowest cost…
Financial Markets
bring together businesses who need to raise capital with busi…
Capital Market Efficiency
current market prices of securities fully reflect all availab…
60 terms
Financial Markets
bond
borrowing rate
broad money
brokerage
government debt instrument
interest rate paid for borrowing funds in financial markets
the measure of money that includes currency, bank deposits an…
fee or commission charged by stockbrokers to clients for trad…
bond
government debt instrument
borrowing rate
interest rate paid for borrowing funds in financial markets
17 terms
Financial Markets
Loanable Funds
Money Market
Fischer Effect
Supply of Loanable funds
The market in which the demand for private investment and the…
The market where the supply of money is set by the central ba…
an increase in expected future infation drives up the nominal…
Curve of money being supplied (saved/lent) from households, f…
Loanable Funds
The market in which the demand for private investment and the…
Money Market
The market where the supply of money is set by the central ba…
39 terms
Financial Markets
actual rate of return
bond yield
bond
bondholder
the total rate of return, including capital gains and interes…
the rate of return a bond is expected to pay at the time of p…
a financial contract through which a borrower like a corporat…
someone who owns bonds and receives the interest payments
actual rate of return
the total rate of return, including capital gains and interes…
bond yield
the rate of return a bond is expected to pay at the time of p…
10 terms
Financial Markets
CAPM
Leverage
Equity Premium Puzzle
Portfolio
Capital Asset Pricing Model... Helps us understand how risk is s…
...
Stocks historically outperform all other assets ... so why bu…
Collection of investments
CAPM
Capital Asset Pricing Model... Helps us understand how risk is s…
Leverage
...
Financial Markets
Investment
financial system
financial asset
financial intermediary
the act of redirecting resources from being consumed today so…
the network of structures and mechanisms that allows the tran…
a claim on the property or income of a borrower
an institution that helps channel funds from savers to borrow…
Investment
the act of redirecting resources from being consumed today so…
financial system
the network of structures and mechanisms that allows the tran…
33 terms
Financial Markets
investment
financial intermediary
mutual fund
diversification
the use of assets to earn income or profit
institution that helps channel funds from savers to borrowers
pools the savings of many individuals and invests this money…
spreading out investments to reduce risks
investment
the use of assets to earn income or profit
financial intermediary
institution that helps channel funds from savers to borrowers
Financial Markets
actual rate of return
bond
bond yield
bondholder
the total rate of return, including capital gains and interes…
a financial contract through which a borrower like a corporat…
the rate of return a bond is expected to pay at the time of p…
someone who owns bonds and receives the interest payments
actual rate of return
the total rate of return, including capital gains and interes…
bond
a financial contract through which a borrower like a corporat…
Financial Markets
Bond
Common ... Stock
Mutual Fund
Growth Stock
A debt investment in which an investor lends money to an enti…
An ownership share or shares of ownership in ... a corporation.
A company that pools money from investors and uses it to buy…
The stock of a firm that is expected to do well - to have ab…
Bond
A debt investment in which an investor lends money to an enti…
Common ... Stock
An ownership share or shares of ownership in ... a corporation.
8 terms
Financial Markets
Credit Default Swaps [CDS] have been i…
1. Dodd-Frank Act: 'The American Finan…
Identify and explain the Monetary Equa…
Using graphs and equations, explain in…
CDs are
B. From 1995 90 trillion and was 2005 600 trillion huge marke…
B. usually the interest rate is used in order to regulate the…
look at paper
Credit Default Swaps [CDS] have been i…
CDs are
1. Dodd-Frank Act: 'The American Finan…
B. From 1995 90 trillion and was 2005 600 trillion huge marke…
Financial Markets: Money Markets
Money Market
Noncompetitive Bid
Competitive Bid
Bid
a group of markets that allows quick and low cost transfers o…
an unconditional offer to purchase a T-bill at the highest re…
a bid submitted on a yield or return basis. The price is calc…
discount rate the dealer will earn if he buys T-bill from an…
Money Market
a group of markets that allows quick and low cost transfers o…
Noncompetitive Bid
an unconditional offer to purchase a T-bill at the highest re…
34 terms
FINANCIAL MARKETS
Asset demand
Asset prices
Australian Prudential Regulation Autho…
Australian Securities and Investments…
The desire to purchase financial assets, such as bonds or sha…
The price of assets, such as shares, gold, land, houses.
This government authority has responsibility for the prudenti…
The Australian Securities and Investments Commission (ASIC) i…
Asset demand
The desire to purchase financial assets, such as bonds or sha…
Asset prices
The price of assets, such as shares, gold, land, houses.
Financial Markets
Money Markets
Discounting formula
WACC
Calculation when both offer same yield…
Mechanism which holders of temporary cash surpluses (lenders)…
Price = (Face Value)/(1+r/100 x d/365)
( summation of bidding yield x allocated amount )/ Total allo…
Bid amount/Combined bid amount x remaining amount... i.e. 10,500…
Money Markets
Mechanism which holders of temporary cash surpluses (lenders)…
Discounting formula
Price = (Face Value)/(1+r/100 x d/365)
FINANCIAL MARKETS
to list the shares
to expand the business
ownership
municipal/state authorities
notować akcje
rozszerzyć działalność
własność
miejskie/ państwowe organy władzy
to list the shares
notować akcje
to expand the business
rozszerzyć działalność
Financial markets
securities
stock
equities
bond
papiery wartościowe
akcje
akcje nieuprzywilejowane
obligacja
securities
papiery wartościowe
stock
akcje
Financial markets
Investment
Financial system
Financial assets
Financial intermediary
Act of redirecting resources from being consumed today so tha…
The network of structures and mechanisms that allows the tran…
A claim on the property or income of a borrower
An institution that helps channel funds from savers to borrow…
Investment
Act of redirecting resources from being consumed today so tha…
Financial system
The network of structures and mechanisms that allows the tran…
43 terms
Financial Markets
financial markets
depository institution
credit union
saving and loan association
markets that transfer funds from savers to borrowers
a financial intermediary that obtains funds by accepting chec…
a depository institution that is organized as a cooperative,…
a depository institution that has traditionally obtained most…
financial markets
markets that transfer funds from savers to borrowers
depository institution
a financial intermediary that obtains funds by accepting chec…
financial markets
financial markets
depository institutions
non-depository investors
federal reserve act of 1913
transfer money from savers to lenders
(banks, credit unions, and savings and loans associations) Th…
including institutional investors, such as mutual funds, pens…
Law that established the fed
financial markets
transfer money from savers to lenders
depository institutions
(banks, credit unions, and savings and loans associations) Th…
Financial Markets
Stock
Share
Income Stock
Growth Stock
represents an ownership share in a corporation
a portion of stock
pays dividends at regular times during the year
pays few or no dividends. use investment earnings
Stock
represents an ownership share in a corporation
Share
a portion of stock
77 terms
Financial Markets
Two ways to invest?
Pyramid of Risk
FDIC
Equity Investment
Equities & Interest Investments
Each investment has some risk, the more risk the higher poten…
Government protects in a bank up to 250,000 per account
Buying low and selling high. Risk varies, can go up or down
Two ways to invest?
Equities & Interest Investments
Pyramid of Risk
Each investment has some risk, the more risk the higher poten…
90 terms
Financial Markets
Depository Institutions Deregulations…
Federal savings and Loan Insurance Cor…
Financial Institutions Reform, Recover…
Deposits
-Allowed interest bearing transaction accounts... -Allowed SLS t…
-had a policy of regulatory forbearance( policy was to not cl…
-abolished the FSLIC... -Created a new savings Association Insur…
comprise 76% of funding
Depository Institutions Deregulations…
-Allowed interest bearing transaction accounts... -Allowed SLS t…
Federal savings and Loan Insurance Cor…
-had a policy of regulatory forbearance( policy was to not cl…
9 terms
Financial Markets
Annuity
Diversification
Future
Municipal Bond
A type of investment where money is exchanged for a series of…
The process of spreading investments across a wide range of s…
A contract that requires the buyer to purchase or sell a cert…
A bond issued by the state or local government. The unique be…
Annuity
A type of investment where money is exchanged for a series of…
Diversification
The process of spreading investments across a wide range of s…
21 terms
Financial Markets
S & P 500
DAX
Nikkei
Shangai
2040.42
11805.99
18723.52
3291.48
S & P 500
2040.42
DAX
11805.99
Financial Markets
Liquidity
Mutual Fund
NASDAQ StockMarket
New York Stock Market Exchange (NYSE)
The ease with which savings or investments can be turned into…
A company that pools money from investors and uses it to buy…
Founded in 1971, this stock market is the world's largest in…
The oldest stock exchange in the United Sates, founded in 179…
Liquidity
The ease with which savings or investments can be turned into…
Mutual Fund
A company that pools money from investors and uses it to buy…
Financial Markets
Savings
Financial System
Stock Exchange
Savings and Investment
income not used for consumption.
all the institutions that help transfer funds between savers…
a market where securities (shares of a companies) are bought…
1. Financial system, which includes banks, stocks and bonds m…
Savings
income not used for consumption.
Financial System
all the institutions that help transfer funds between savers…
20 terms
Financial Markets
AMEX
Bond
Broker
Buying on margin
The acronym stands for american stock exchange, formerly an i…
A debt investment in which an investor lends money to an enti…
A professional trader who buys and sells stocks for individua…
Buying stock by paying only a percentage of the purchase pric…
AMEX
The acronym stands for american stock exchange, formerly an i…
Bond
A debt investment in which an investor lends money to an enti…
25 terms
financial markets
financial markets
price function
discipline function
primary market
markets where funds are moved from surplus to investment oppo…
make a fair valuation of the asset
regulated financial markets that deter borrowers from engagin…
issue and price new securities, funds raised by sale of stock…
financial markets
markets where funds are moved from surplus to investment oppo…
price function
make a fair valuation of the asset
17 terms
Financial Markets
Australian Prudential Regulation Autho…
Australian Securities and Investment C…
Australian Treasury
Bond Market
this organisation is responsible for the prudential supervisi…
this organisation has responsibility for the administration o…
this organisation aims to provide advice on macroeconomic pol…
this involves the trading of governement and corporate bonds…
Australian Prudential Regulation Autho…
this organisation is responsible for the prudential supervisi…
Australian Securities and Investment C…
this organisation has responsibility for the administration o…
29 terms
Lesson 9 Financial Markets
annuity
blue chip stock
business risk
capital markets
A type of investment where money is exchanged for a series of…
The stock of a financially sound company with a history of st…
The level of uncertainty of expected returns due to a busines…
The market for intermediate and long-term investments.
annuity
A type of investment where money is exchanged for a series of…
blue chip stock
The stock of a financially sound company with a history of st…
Financial Markets
3 Key Details of Bond
Two bond principles
Secondary Markets
Two special debt instruments
1) Borrower (name)... 2) Date of Maturity... 3) Value at Maturity (…
1) Dollar Price determines R... 2) Dollar price (p0) and R move…
Where securities are traded after their initial sale
1) US Treasury Bonds... 2) Home mortgages
3 Key Details of Bond
1) Borrower (name)... 2) Date of Maturity... 3) Value at Maturity (…
Two bond principles
1) Dollar Price determines R... 2) Dollar price (p0) and R move…
37 terms
Financial Markets
securities
primary market
secondary market
ASX
Any form of financial instrument including shares, bonds that…
market for new financial assets where they are sold for the f…
market for previously issued financial securities where it is…
the major share market in Australia
securities
Any form of financial instrument including shares, bonds that…
primary market
market for new financial assets where they are sold for the f…
Financial Markets
simple loan
fixed-payment loan
coupon bond
fixed interest rate
lender provides borrower with a certain amount that must be r…
lender provides the borrower with a certain amount that is re…
borrower pays the owner of the bond a fixed interest rate unt…
interest rate that remains the same regardless of outside var…
simple loan
lender provides borrower with a certain amount that must be r…
fixed-payment loan
lender provides the borrower with a certain amount that is re…
6 terms
Financial Markets
Investment
Mutual fund
Diversification
Portfolio
Use of assets to earn income or profit
Pools money to purchase short term low risk investments
Spreading out investments to reduce risk
A collection of financial assets
Investment
Use of assets to earn income or profit
Mutual fund
Pools money to purchase short term low risk investments
Financial Markets
Loanable funds market
Savings
Financial intermediaries
Bank
where households make their savings available to those who de…
can be kept in a bank or used to buy stocks or bonds or other…
financial institutions that accept funds from savers and make…
financial intermediary that takes in deposits from customers…
Loanable funds market
where households make their savings available to those who de…
Savings
can be kept in a bank or used to buy stocks or bonds or other…
34 terms
Financial Markets
Investment
FDIC
Financial System
Financial Assets
Act of redirecting resources from being consumed today so the…
Gov insures your money in the bank
The system that includes savers and borrowers
Documents that represent claims on property (Stock certificat…
Investment
Act of redirecting resources from being consumed today so the…
FDIC
Gov insures your money in the bank
Financial Markets
annuity
Diversification
Future
Municipal Bond
A type of investment where money is exchanged for a series of…
The process of spreading investment across a wide range of se…
A contract that requires the buyer to purchase or sell a cert…
A bond issued by the state or local government.The unique ben…
annuity
A type of investment where money is exchanged for a series of…
Diversification
The process of spreading investment across a wide range of se…
33 terms
Financial Markets
Investment
Financial system
Financial assets
Financial intermediaries
The act of redirecting resources from being consumed today so…
System that allows the transfer of money between savers and b…
Claim on the property or income of a borrower
Institution that helps channel funds from savers to borrowers
Investment
The act of redirecting resources from being consumed today so…
Financial system
System that allows the transfer of money between savers and b…
34 terms
Financial Markets
Financial services
Managerial finance
EPS - Earnings per share
Treasurer
Area of finance concerned with design and delivery of advice…
Concerns the duties of the financial manager in the company
Net income - Preferred stock dividends... ----------------------…
Responsible for firm's financial activities
Financial services
Area of finance concerned with design and delivery of advice…
Managerial finance
Concerns the duties of the financial manager in the company
12 terms
Financial Markets
Annuity
Blue chip stock
Bond
Business risk
A type of investment where money is exchanged for a series of…
The stock of a financially sound company with a history of st…
loan an investor makes to a corporation or government for a s…
being unsure of your returns due to businesses poor performan…
Annuity
A type of investment where money is exchanged for a series of…
Blue chip stock
The stock of a financially sound company with a history of st…
Financial Markets
AMEX
Bond
Broker
Buying on margin
acronym stands for American Stock Exchange
investment in which an investor loans money to an entity
professional trader who buys and sells stocks
is borrowing money from a broker to purchase stock. You can t…
AMEX
acronym stands for American Stock Exchange
Bond
investment in which an investor loans money to an entity
financial markets
financial intermediaries
bonds
stock market
ways to make money of stock
together savers and borrowers to channel funds for investments
low risk investment
high return greater risk
income or value stocks pays dividend... growth stock
financial intermediaries
together savers and borrowers to channel funds for investments
bonds
low risk investment
6 terms
financial markets
investment
mutual fund
diversification
portfolio
the use of assets to earn income or profit
pools savings of many to purchase "low risk" investments
spreading out investment to reduce risk
a collection of financial assets
investment
the use of assets to earn income or profit
mutual fund
pools savings of many to purchase "low risk" investments
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