Debt and Equity Flashcards
Growth investing
Selection of equity based solely on earnings or stock price growth over time
Value investing
Selection of equity based on finding undervalued issues using fundamental analysis
Fundamental analysis
Evaluating balance sheet, income statement, management, marketing, and research/development as means of predicting the future long-term price movements of its stock
Technical analysis
Research that seeks to predict future price movements of stock by using price movements and volume indicators, charts and volume movements
Statutory voting
Each shareholder given one vote per share
Cumulative voting
Multiply number of shares by number of open seats and use any denomination
ETNs
Debt instruments linked to performance of commodity, currency or index. Typically have maturities between 10 and 30 years
Retail communications
Over 25 retail investors in a month
Subject to pre approval
Retail communications
Over 25 retail investors in a month
Subject to pre approval
Correspondence
Less that 25 retail investors in 30 days
Subject to review and supervision
ECNs
Securities trading systems designed to anonymously match buyers with sellers
Do not allow investors to trade directly with one another, but broker-dealers can use to execute orders for clients
Trade confirm
Must be sent business day after settlement
Payment
Must be made two business days following regular way settlement
SIPC coverage
$500,000 per separate customer, max of $250,000 in cash. No protection for futures
Prospectus
Disclosure document for newly issued stocks and bonds (in the primary market)
