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General Mathematics 2nd Quarter Quarterly Examinations > Stocks, Bonds, and Loans > Flashcards

Stocks, Bonds, and Loans Flashcards

1
Q

If the minuend (price sold) subtracted to the subtrahend (price bought) results in a positive difference

A

Gain

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2
Q

If the minuend (price sold) subtracted to the subtrahend (price bought) results in a negative difference

A

Loss

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3
Q

-Equity Security
-Represents a share/portion of the company
-Investment instrument for building wealth
-stockholder

A

Stocks

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4
Q

-The share/portion distributed to stockholder

A

Dividend

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5
Q

-company -issued
-Raise money for the company
-Promissory document (issued by a debtor) stating the amount of debt and pledge to pay back the pledged amount

A

Bonds

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6
Q

Ratio of the dividend to the # of shares

A

Dividend per share (Profit / Total amount of shares)

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7
Q

Multiply the formula above by the owned share to obtain the stockholder dividend

A

Stockholder Dividend (Dividend Per share x the owned share)

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8
Q

current price of a stock in the current market

A

Market Value

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9
Q

ratio of DpS and Market Value per Share

A

Stock Yield (DPS/MARKET VALUE)

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10
Q

Per amount stated on the company certificate. Determined by the company. Stable over time

A

Par Value

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11
Q

TOTAL COST OF STOCK FORMULA

A

(#ofsharesx Price per share) + commission

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12
Q

TOTAL SELLING PRICE FORMULA

A

(#ofshares x selling price per share)

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13
Q

Issues of debt (Stocks or Bonds)

A

Bonds

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14
Q

Issues of stake of ownership in a company (Stocks or Bonds)

A

Stocks

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15
Q

Shareholders are part-owners of the company (Stocks or Bonds)

A

Stocks

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16
Q

Bondholders are lenders to the company (Stocks or bonds)

A

Bonds

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17
Q

Dividend (Stocks or Bonds)

A

Stocks

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18
Q

Interest (Stocks or Bonds)

A

Bonds

19
Q

There is no return guarantee and it is high risk (Stocks or Bonds)

A

Stocks

20
Q

There is a return guarantee and it is low risk. (Stocks or Bonds)

A

Bonds

21
Q

Can be issued by government or private institutions (Stocks or Bonds)

A

Bonds

22
Q

Can be issued by corporates (Stocks or Bonds)

A

Stocks

23
Q

states that the stock market reacts very fast to any information and at any given period,the market contains the total views of all the investors in the market.Thus, the proponents of the theory believe that the current price of the stock is the accurate reflection of the investors’ knowledge about the stock.

A

Efficient Market Theory

24
Q

is the measure of the value of a section of the stock market and is computed from the price of selected stocks. Investors And financial managers use this to describe the market and compare the return on specific investment. The stock index can also reflect the country’s economy.

A

Stock (market) index

25
Q

periodic interest payment that the bondholder receives during the time between purchase date and maturity date (Under gains and losses in bonds)

A

Coupon

26
Q

the rate per coupon payment period (Under gains and losses in bonds)

A

Coupon rate

27
Q

the amount payable in the maturity date (Under gains and losses in bonds)

A

Face Value

28
Q

fixed period of time (in years) at which the bond is redeemable.

A

Term of a Bond

29
Q

Lent to business companies to fund business operating costs

A

Business Loans

30
Q

personal purchases

A

Consumer Loans

31
Q

affected by the length of time the business is operating

A

Terms

32
Q

Agrees to pay for someone else’s financial obligation if borrower fails

A

Guarantors

33
Q

Terms of business loans

A

Shorter + Higher Interest Rates

34
Q

Guarantors required for business loans

A

Principal Owners themselves are guarantors

Need to put up personal assets incase business fails

35
Q

Guarantors required for consumer loans

A

Does not require guarantors

36
Q

Documents required for Business loans

A

More documents required

37
Q

Documents required for consumer loans

A

Requires Proofs of income (pay slip, credit card, etc.)

38
Q

Types of Business loans

A
  • Term loan
  • credit line
  • secured business loan
  • unsecured business loan
39
Q

Lenders provide loan amounts in a lump sum credited to the borrower’s deposit account and can be short-term or long-term. Most term loans are repaid by a fixed amount of payments that include both the principal and the interest.

A

Term Loan

40
Q

short-term loan providing quick access to money on demand. In This type of loan, borrowers can repay the principal anytime or as often as they can within the loan term.

A

Credit Line

41
Q

This type of loan requires a collateral that the lender will claim in case the borrower cannot pay the loan. It generally has lower rates, longer loan terms, and higher loan amounts. These features make secured loans affordable and suitable for small startup businesses.

A

Secured Business Loan

42
Q

This type of loan does not require collateral but is harder to qualify for.No-collateral business loans come with higher interest rates, shorter loan terms, and lower loan amounts.

A

Unsecured Business Loan

43
Q

Types of Consumer Loans

A
  • Mortgage
  • Credit Card
  • Auto Loan
  • Student loan

General Mathematics 2nd Quarter Quarterly Examinations (5 decks)

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