Exam Prelim Flashcards
Market refers to original sale of securities
Primary Market
Securities issued by national government, maturity less than 1 year
Treasury Bills
Unsecured short term instrument used by corporations
Commerical Paper
Network of corporations, financial institutions…. Deals with the flow of short term capital
Money Market
Number of years(term) until instrument expiration
Maturity
Independent central monetary authorityof the country
BSP
Pamilihang Sapi ng Pinas
PSE
Cannot be withdrawn before a set of date
Time Deposit
No voting rights, less volatile
Preffered stock
Price which securities are bought and sold on recognized stock exchange
Official Quotation
PSE policy ensure both will have the same price
One Price One Market
Organized secondary market-securities and shares are purchased
Stock Exchange
This stock exchange has physical location
Organize Stock Exchange
This stock exchange trades shares using systems of computers
Over the counter exchange
A numerical representation of group of stock that is used to track their collective performance
Stock Index
CHANNEL FUNDS from sectors that have a SURPLUS to sectors that have a SHORTAGE of fund
Financial System
remain as major financial service access point in the country particularly in providing liquidity to borrowers
Pawnshop and MSB,
is used to describe the in person and digital spaces in which various entities trade different types of FINANCIALINSTRUMENTS
Capital Market
is effectively a monetary contract (real or virtual), which confers a right or claim against some counterparty in the form of a payme
FINANCIAL INSTRUMENTS
they are the meeting place for people, corporations, and institutions that either need money or have money to lend or invest.
FINANCIAL MARKET
are members of the recognized stock exchange who buys, sells, deals the securities.
STOCK BROKERS
Agents of Investor
Brokers
The agreement between the firm issuing and the bondholder
Indenture
Ratio of the annual payment to the bond markets price
Current Yield
Bonds internal rate of return, discount rate that equates the present value
Yield to Maturity
Face value of the bond that is returned to thr bond holder at maturity
Par value
% of par value that will be paid out annually form of interest
Coupon Interest rate
Length of time until the bond issuer return the par value to the bondholder
Maturity
Firm or group of firms that purchase bonds directly from a bond issuer
Underwriter
2 set of cash flow bonds
Periodic interest payment
The principal return at maturity
Users of bonds
Government
Corporations
Users of money market
Investors, company and government
Major financial institutions of ph financial system structure
Bangko Sentral ng Pilipinas
Banking Institution
Non Banking Institution
Financial markets do
Raising capital
Price Settin
Investing
Risk management
