Part 4 - Test 1267 Flashcards by Ashley Sun

Security (financial term)

Tradable asset

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Legally binding contract

Legally enforceable agreement which is: 1) both parties agree; 2) include some value of exchange

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Investment scam

Unethical behavior in the stock market to gain profit while causing loss of companies of unstabilize the market

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Pump and dump

Buy in shares of stock then mislead investors to invest in this stock, causing a dramatic rise in price. Then, the scammer dumps all shares of stock they owned, causing rest of the shares to be value-less

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Ponzi scheme

Luring new investors by high-return and low-risk investments

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Hype

= Pump up, increase, boost

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Pyramid scheme

Illegal form of multi-level marketing, collect initial fees from large scale of people

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Phishing

Online identity theft scam, imitate as a legitimate website and mislead users to enter sensitive info

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Framing

Tendency to respond to situations based on how those situations are posed or viewed

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Taxation

A portion of money taken by the government from financial activities (trades and transactions)

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Types of taxation (7)

Capital gains, sales, excise, gift, luxury, property, estate

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Letter of laws

The exact words and sentences in the laws, such as limits or written down forbidden activities

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Spirit of laws

The intent of setting the laws

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Memorandum

Simply written report distributed to employees, on topics of: progress of various projects and/or updated changes in policies or procedures

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Proposal

Complex written report with formal language and details, not only for employees

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Handbooks and newsletters

Not reports but are to be documents inside a business

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Competence

Ability, knowledge, know-how of tools to complete the task

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Financial-information management

1. responsib. 2. purpose 3a. tech 3b. p. p. e/t 4. data need to be

1) Responsibilities increased in recent years due to increase compliance requirements; 2) Support operations management to make decisions; 3a) Technology is not everything, it is only a part; 3b) Involves people, processes, equipments/technology; 4) Data collect by ~ need to be updated and current

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Business productivity

Amount of goods/services produced by a business from a set amount of resources

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Disposable income

Amount of income left after taxes are paid

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Quality of work life

General conditions of envir that can impact employees’ productivity

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Gross domestic product (country-based)

Final total value of all goods and services produced within a country’s boundaries during a year’s time

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Ticker symbol (stocks)

The company’s abbr. on stock market

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Trademark

Symbol, design or word used by producer to identify a good or service, registered with gov (unique for each company)

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Intermediaries

= middleman, help to stipulate buy and sell

Legislative groups

Develop and pass through laws

Embezzlement (crime)

Thefts on company's valuables practiced by a person given access

Espionage (crime)

Revealing confidential info without permission, to another competitor usually; spying

Securities fraud (crime)

Use misleading info and sales tactics to persuade investors in purchasing security

Inside trading (crime)

Leaking info to others, info not known by public

Business cycle

KNOW IT BY HEART

Emerging market

Growing market when a country changes from closed econ. to opened econ.

*Describing financial info | T. T. U. C. R.

Useful financial information is typically transparent, timely (up to date), understandable (simply noted down), comparable (can be brought together w/ another data), and reliable (true, complete and faithfully represented).

Error prone

Tending to cause errors

Affinity fraud

Investment fraud, making people believe that they are the same

Tax structure

The ratio between earnings and amount of taxes paid

Types of tax structure

Progressive, regressive, proportional

Integrated financial market

Different markets are connected, easier flow of capital with no barriers

Recession-proof economy

Economically resistant to recessions

Industrial-based market

All the entities that acquire goods and services, become raw materials for businesses that produce consumer products

Financial analysis (check other one)

Analyze financial information, techniques used by accountants

Variance analysis

Difference between the planned amount and actual amount; how well an accountant has budgeted

Marginal analysis (incremental); ~ costs with ~ revenues

Additional benefits of an activity compared to the additional costs spent by that activity

Cost-benefit analysis

Cost and benefits of practicing an action (decision)

SWOT analysis

YOU SHOULD KNOW THIS

Fishbone analysis

YOU SHOULD KNOW THIS

Trade-off analysis

Conducted after a company has identified a range of options for addressing operations issues

Benchmarking

Compares a business's financial performance with other companies in its industry or with industry standards

Financial ratios

Comparisons of different numbers from a business's financial statement; strengths and weaknesses

DuPont modeling | breakdown: 1, 2, 3

Comparisons of different numbers from a business's financial statement; strengths and weaknesses | Breaks down ROE (profit margin, asset turnover, financial leverage)

Forecasting

Predictions, budgets, and what-if scenarios

Sunk costs

Irretrievable cost spent on activities (failed activities)

Monetize

To generate revenue from an asset or resource

Escalate

= to increase

Yield

Earnings on an investment over a period of time

Scope

Busy-ness, frequency of tasks (periodical)

Management information system (MIS)

Hardware or software, assist information management

Digita microfim scanner

Digitize archived documents, keep business's docs

Electronic data interchange (EDI)

Already def.ed below

Direct-response software

Record results from direct responses (campaigns aiming to get immediate reactions from customers)

Web-development programs

As what it means literally

Financial information management system

Collect, organize, analyze information reflecting the comp's finances

Solicite

Persuade

Constituent policies

Refers to the governmental document of laws