Brainscape's Knowledge GenomeTM

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


See full index

Entrepreneurship > Chapter 19 VOCAB > Flashcards

Chapter 19 VOCAB Flashcards

1
Q

Ownership of or equity in a company

A

stock

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

Investments such as stocks, bonds, options, futures, and commodities

A

securities

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

shares of ownership that include voting rights

A

common stock

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

increases in the value of a stock or other asset

A

capital gains

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

shares of ownership without voting rights but with defined dividends

A

preferred stock

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

difference between the assets and liabilities as listed on the balance sheet

A

book value

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

the price at which the stock is actually selling in the stock market

A

market value

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

as estimate of what a company is actually worth, independent of book, and market values

A

intrinsic value

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

market value per share divided by the earnings per share

A

price-earnings ratio

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

act of dividing a share into two or more new shares and reducing the market value by the same ratio

A

stock split

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

Amount of money, or principle, a bond buyer lends to a bond issuer

A

face value; also known as par value or denomination

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

date on which the principle of a bond will be repaid in full

A

maturity date

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

interest income a purchaser receives from the bond

A

yield

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

short-term debt securities issued by the federal government

A

Treasury bills; also referred to as T-bills

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

debt securities issued by the federal government that are repaid within 1 to 10 years after issuance

A

Treasury notes

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

debt securities issued by the federal government that are repaid more than 10 years after issuance

A

Treasury bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

treasury issues in which the principle amount is tied to the Consumer Price Index to protect the buyer against the effects of inflation

A

Treasury inflation-protected securities (TIPS)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

bonds issued by states, cities, and various government agencies to fund public projects

A

municipal bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

spreading investments across enough different vehicles to protect against significant declines in any one vehicle

A

portfolio diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

financial instruments that pool money from many investors to buy a diversified mix of stocks, bonds, or other securities

A

mutual funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

annual cost of owning a mutual fund, expressed as a percentage

A

expense ratio

22
Q

sales commission charged when buying or selling a mutual fund

A

load

23
Q

mutual funds that do not charge loads

A

no-load funds

24
Q

mutual funds that mirror the composition of a particular market or index

A

index funds

25
Q

statsitical indicator of the rise and fall of a representative group of securities

A

index

26
Q

mutual funds whose shares are traded on public exchange in the same way as stocks

A

exchange traded funds (ETFs)

27
Q

a mutual fund’s assets minus its liabilities

A

net asset value (NAV); usually expressed as NAV per share

28
Q

contracts whose value is derived from some other entity (usually an asset of some kind, but not necessarily); used to hedge against or speculate on risk

A

derivatives

29
Q

the purchased right - but not the obligation - to buy or sell a specific number of shares of a stock at a predetermined price during a specified period

A

option

30
Q

contracts to buy or sell a financial instrument (such as stocks, Treasury bonds, and foreign currencies) for a set price at a future date

A

financial futures

31
Q

contracts to buy or sell specific amounts of commodities for a set price at a future dates

A

commodities futures

32
Q

contracts to buy o sell amounts of specified currency at some future date

A

currency futures

33
Q

derivatives used to reduce a lender’s exposure to credit risk

A

credit derivatives

34
Q

organizations that facilitate the buying and selling of stock

A

stock exchanges

35
Q

The New York Stock Exchange, one of oldest and most widely recognized exchanges in the world

A

NYSE

36
Q

an electronic stock exchange that competes with the NYSE

A

NASDAQ

37
Q

the collective buying and selling of bonds; most bond trading is done over the counter, rather than in organized exchanges

A

bond market

38
Q

over-the-counter marketplace for short-term debt instruments such as Treasury bills and commercial paper

A

money market

39
Q

includes exchange trading (for futures and some options) and OTC trading (for all other derivatives, at least currently)

A

derivatives market

40
Q

gain (or loss) of an investment over time, expressed as a percentage

A

rate of return

41
Q

market situation in which most stocks are increasing in value

A

bull market

42
Q

market situation in which most stocks are decreasing in value

A

bear market

43
Q

collections of various types of investments

A

investment portfolios

44
Q

managing a portfolio to balance potential returns with an acceptable level of risk

A

asset allocation

45
Q

certified expert who is legally registered to buy and sell securities on behalf of individual and institutional investors

A

broker

46
Q

type of securities order that instructs the broker to buy or sell at the best price that can be negotiated at the moment

A

market order

47
Q

order that stipulates the highest or lowest price at which the customer is willing to trade securities

A

limit order

48
Q

order to sell a stock when its price falls to a particular point to limit an investor’s losses

A

stop order

49
Q

borrowing money from brokers to buy stock, paying interest on the borrowed money, and leaving the stock with the broker as collateral

A

margin trading

50
Q

selling stock borrowed from a broker with the intention of buying it back later at a lower price, repaying the broker, and keeping the profit

A

short selling

Entrepreneurship (9 decks)

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