CAPITAL MARKET Flashcards
finals
Financial Markets are classified into
MONEY MARKET
CAPITAL MARKET
refers to the market where regular activities of buying, selling and issuance of shares of publicly held companies take place.
STOCK MARKET
Debt securities such as ____ are Interest bearing IOUs.
BONDS
is a marketplace or the infrastructure that facilitates equity trading.
STOCK EXCHANGE
Through the offices of member firms located everywhere, oven In the provinces, stocks are available to millions of people.
MOST ACCESSIBLE MARKET
Transactions and price data are available through newspapers, radio, television and Information networks.
PUBLIC VIEW
Acts as agent or middleman between the investor and other buyers/sellers. As an
Intermediary, the stockbroker executes orders for clients, purchasing or selling the stock on the stock exchange. Licensed by the SEC to trade in securities.
STOCKBROKER
When shares are purchased and transferred from the seller to the buyer, the transaction should be recorded in the stock books of every listed company which record the complete shareholdings of each stockholder of the company.
TRANSFER AGENT
All stockbrokers will make payments to and receive payments for purchases and
sales they have made for their clients
CLEARING HOUSE
meeting place for people, corporations and institutions that either need money or have money to lend or invest.
FINANCIAL MARKET
When a corporation uses the financial markets to raise new funds, the sale of securities is said to be made in the _____ by way of a new issue.
PRIMARY MARKET
What financial markets do. ________ - firms often require funds to build new facilities,
replace machinery or expand their business in other ways. Shares, bonds and other types of financial instruments make this possible.
RAISE CAPITAL
After the securities are sold to the public, they can be traded in the
SECONDARY MARKET
Investors will get the company shares which they can expect to hold for their preferred duration, in anticipation of rising in share price and any potential income in the form of ______ payments.
DIVIDEND
It is a security usually purchased for participation in the profits and control of
ownership and management of the company. The stockholder exercises control through voting rights during annual or special stockholders’ meetings, but can only claim rights to the company’s assets and earnings when preferred shareholders are already paid in full.
COMMON STOCK
