Chapter 16 Flashcards
Common Stock
shares that give owners voting rights but only residual claims to the firm’s assets and income distributions.
Exchanges
infrastructure that facilitates the trading of equity securities and stocks.
Federal Reserve System (Fed)
central bank of the United States.
Financial Markets
markets in which securities are bought and sold.
Financial System
process by which money flows from savers to users.
Insider Trading
use of material nonpublic information about a company to make investment profits
Investment Banker
assist companies in raising capital and provide merger and acquisition services.
Primary Markets
financial markets in which corporations and governments issue securities and sell them initially to the general public.
Secondary Market
collection of financial markets in which previously issued securities are traded among investors.
Securities
financial instruments that represent obligations on the part of the issuers to provide the purchasers with expected stated returns in the funds invested or loaned
Stock Markets
companies that list stocks for public investors to buy and sell.
Stock Quote
price of a specific stock and performance information.
Stock Split
occurs when a company decides to divide its existing shares of stock into multiple shares.
