Financial Merkets - phrases Flashcards
securities
stock bonds and money market instruments
individual investors
financial institutions
equities
stocks
listed on stock exchange
privately held stakes
not publicly traded
mutual fund
basket of stocks
stocks picked up by fund manager and put together into mutual fund
unit trust
mutual funds
invest in particular country or different sector of market
track (exactly follow) particular index
investment objective
share dividents
long term capital growth
bourse
stock exchange
index
small selected group of stocks can be bought together
Dow Jones index
index of 30 lage companies
credit rating agency
compiles dozens of diferent indices based on company size or marker sector
analysis of individual companies
analysis of the national and global economy
technical analysis
charts, internal market statistics (volume and momentum) to identifu future trends and turning points
about ten times bigger then
if government wants to borrow the money, it issued the bonds
bondholder
the principal
original amount of bonds
the maturity
the term of the loan
bondholder interest
coupon
entirely electronic
US government bonds include T-bond and T-note
T-bond (treasury bond)
30 years US bonds
T-note
10 year US bonds
German bund
These are consider to be low risk
investment grade bonds
low risk bonds
high yield bonds, junk bonds
high risk bonds
bonds can be traded
interest repaid on bond is fixed over the term
bonds are issued and repaid in particular currency
currency movement
currency fluctuations
spare cash
T-bills
from US government
certificates of deposit
from bank
commercial papers
companies
short term loans that pay interest
foreign exchange
forex
bigger then all the securities markets combined
euro against dolar
buy and sell currency pairs
trying to maintain stability of their own currency
pension funds
huge amount of speculation
hedge
protect againts fluctuation risk
commodity market
dealers trade the future prices of
insurance companies
endowments
investing
buy and hold for the longterm
trading
buy and sell over the sort term
technical analysis
internal market factors
volume, breadth, momentum
chart patterns
resistance and support, trading channels
investor sentiment
level of bullishness or bearishness in the market
Growth and productivity of economy
inflation and direction of interest rates
consumer confidence: willingness of consumers to spend
market position
Barriers to entry (difficulty for new players to enter the market)
price elasticity
ease of substitution
capital requirements
market penetration
earnings growth
p/e ratio
market capitalization
tracker fund
market penetration
