8.-9. anyag Flashcards
Public markets to buy and sell stocks / shares
Stock market
Securities that are considered to be without risk
Blue chip
Widely-held stocks that are indicators of future market performance
Barometer
Another name for shares because all the shares of company have an equal nominal value
Equity
Receive a fixed dividend that must be paid in full before the dividend payment of any other shares (no voting rights)
Preference
Often the only kind of shares with voting rights (no fixed dividend)
Ordinary
They get back their original investment (principal) on a fixed maturity date and receive interest payments (coupon) at regular intervals (six-monthly or annually) until then
Bondholders
Companies can issue shares to raise finances to fund their operations
Equity financing
Borrowing money from the general public by issuing government or corporate bonds
Debt financing
To change from a private company to a public limited company (PLC)
To go public
A detailed examination of a company and its financial situation
Due diligence
To offer the company‘s shares to investors (financial institutions and general public)
Flotation
To issue the shares the first time on the stock exchange
To have an IPO
To guarantee to buy the shares if there are not enough buyers
To underwrite
Broker/dealer/investment firm that quotes bid and ask (offer) prices, ready to sell and buy at all times, provides liquidity, profits from the spread
Market maker
Take long positions, buy stocks in the hope that the price will rise, sell the stock at a higher price
Prices are rising
Bull
Bullish market
Take short positions (sell), speculate on profiting from falling prices:
- borrow the stock
- sell it at 10 dollars
- price falls to 9 dollars
- buy it at 9 dollars, profit is 1 dollar
Bear
Bearish market
People who buy new share issues hoping to resell them at a profit
Stag
People who buy stakes in companies that are involved in takeover bids
Arbitrageur
Measures the change in the share prices of a basket of companies, showing the overall performance of the stock market or a segment of the market
Stock market index
Traditional bank + non-bank financial institution
Two-tier bank system
They are digital-first financial institutions that operate without traditional brick-and-mortar branches
Neobanks
The ECB and the national central banks (NCBs) of all EU Member States whether they have adopted the euro or not
European System of Central Banks (ESCB)
The ECB and the NCBs of those countries that have adopted the euro
Eurosystem
Avoidance of inflation, maintenance of purchasing power
Price stability
Should not exceed 3% of GDP
Fiscal / budget deficit
Should not exceed 60% of GDP
Government / public debt
Maintenance of stable exchange rate of the national currency
Exchange rate
They are owned and operated by their members and usually organised by a union or people living or working at the same place.
They are non-profit, member-service, depository institutions that make low interest loans
Credit unions
They are formed primarily to lend money in the form of mortgages for house or flat purchase or construction.
They also have interest-bearing accounts.
Savings and loan associations
Building societies
They are companies that collect money from small, called unit-holders, and invest in the shares and bonds of many different companies
Mutual funds
Unit trusts
