Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TBFSI Finance > Chapter 17 > Flashcards

Chapter 17 Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

fundamental analysis

A

The practice of evaluating the information contained in financial statements, industry reports, and economic factors to determine the intrinsic value of a firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

intrinsic value

A

The “true,” or economic, value of the firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

technical analysis

A

Examination of supply and demand for securities over time to determine trends in price movements of stocks or financial markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

fundamentalists

A

analysts who utilize fundamental analysis in an attempt to forecast future stock price movements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

technicians

A

analysts who examine stocks and financial markets using technical analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

business cycle

A

the movement in aggregate economic activity as measured by the GDP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

expansion

A

increasing economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

contraction

A

declining economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

gross domestic product (GDP)

A

a measure of all goods and services produced in the economy during a specific time period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

recession

A

two consecutive quarters of economic contraction in the GDP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

leading economic indicators

A

Economic measures that tend to move prior to, or precede, movements in the business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

lagging economic indicators

A

Economic measures that tend to move after, or follow, movements in the business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

coincident indicators

A

Economic measures that tend to mirror, or move at the same time as, business cycle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

monetary policy

A

the means by which the Federal Reserve influences economic conditions by managing the U.S. money supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

fiscal policy

A

government spending, which is primarily supported by the government’s ability to tax individuals and businesses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

deficit spending

A

when the government spends more funds than it collects in taxes

17
Q

cyclical industries

A

Industries that tend to perform best during expansions and worst during contractions

18
Q

defensive (countercyclical) industries

A

Industries that tend to be the best performers when the economy is in a contraction of recession, and the wort performers in expanding economies

19
Q

industry life cycle

A

The various phases of an industry with respect to its growth in sales and its competitive conditions

20
Q

dividend discount model (DDM)

A

A model that utilizes the discounted cash flow principle to value common stock Value is represented by the present value of the dividends expected to be received from investing in the stock.

21
Q

P/E Ratio

A

A ratio computed by dividing the current market price per share by the earnings per share

22
Q

economic value added (EVA)

A

An analytical method that seeks to evaluate the earnings generated by a firm to determine whether they are sufficient to compensate the suppliers of funds-both the bondholders and the stockholders

23
Q

bar chart

A

A graph that indicates the high, low, and closing price movements for a stock during a specified period

24
Q

trend line

A

A line that indicates the direction of the stock price movement. It is drawn so that it touches either the high prices or the low prices for some of the trading days.

25
Q

trend line penetration

A

The point at which the trading line crosses the trend line

26
Q

Dow theory

A

A technique used to predict reversals in market patterns by examining the movements of the Dow Jones Industrial Average and the Dow Jones Transportation Average.

27
Q

technical indicators

A

Measures used by technical analysts to forecast future movements in stock prices

28
Q

market breadth indicators

A

Technical indicators that are used to measure the trading volume and the range of trading that takes place in the market

29
Q

advance/decline line

A

A graph that depicts the difference between the number of advancing stocks and the number of declining stocks over some time period

30
Q

sentiment indicators

A

Technical indicators that are used to monitor the “mood,” or psychology, of the market

31
Q

moving averages

A

Stock price averages for a fixed time frame (say 100 days) computed for a particular period of time

32
Q

growth stocks

A

Stocks of firms that have many positive net present value opportunities. In general, these firms exhibit sales and earnings growth rates that significantly exceed the industry averages

33
Q

value stocks

A

Stocks of firms that are mispriced, especially those that are undervalued.

TBFSI Finance (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions