Knowledge Of Capital Markets Flashcards
A negotiable instrument issued by a U.S bank that trades in the U.S. financial markets and represents shares of a foreign stock.
ADR or American Depositary Receipt
The price a seller is willing to accept for a security.
Ask Price
The price a buyer is willing to pay for a security
Bid Price
A debt obligation in which the borrower promises to pay a set coupon rate until the issue matures at which time the principal is repaid.
Bond
A person who receives the benefits of an insurance policy
Beneficiary
A firm that effects securities transactions for its own account or for the accounts of others.
Broker/Dealer
A standardized commodities or securities contract to deliver a certain quantity at a predetermined future price and date.
Futures contract
A brokerage account that allows investors to purchase securities with borrowed funds using credit extended by the broker/dealer
Margin account
Broker/Dealer belonging to a self-regulatory organization (SRO) such as FINRA or NYSE or both
Member firm
A professionally managed open end investment company issuing redeemable securities in a continuous offering of shares
Mutual fund
A security giving the holder the choice to either purchase or sell a security at a set price for a specific period
Option
A full and fair risk disclosure required by the securities and exchange commission for all new offerings of non exempt securities
Prospectus
A financial instrument that may trade for value
Security
An organization that is authorized to enforce standards and requirements related to securities trading and brokerage
Self regulatory organization (SRO)
A type of security that represents ownership in a corporation
Stock
