Chapter 16 the financial system Flashcards
Common stock
Shares that give owners voting rights but only residual claims to the firms assets and income distribution
Exchanges
Infrastructure that facilitates the trading of equity securities and stocks
Federal deposit insurance corporation (FDIC)
Federal agency that ensures deposits at commercial and savings banks
Federal reserve system (fed)
Central bank of the United States
Financial institutions
Intermediary between savers and borrowers, collecting funds from savers and letting the funds to the individuals, businesses, and government.
Financial markets
Markets in which securities are bought and sold
Financial system
Process by which money flows from savers to users
Insider trading
You said material nonpublic information about a company to make investment profits
Investment banker
SS companies in raising capital and provide merger and acquisition services
Primary market
Financial markets in which corporations and government 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 on 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 the company decides to divide its existing shares of stock into multiple shares
