Yo mama #1 Flashcards
Which of the term structure theories claims that investors are limited to certain maturity ranges due to legal restrictions and personal preferences?
The Market segmentation theory: there are separate markets for long and sort term investments
Which of the term structure theories claims that investors require maturity premiums to compensate them for buying securities that expose them to the risks of fluctuating interest rates?
Liquidity preference theory
What do capital market instruments include?
Market for long term financial instruments:
Loans
Stocks,
Bonds
What do Money markets include ?
Market for Short term debt instruments:
Treasury bills,
Negotiable CD’s,
commercial paper
If you sell 100 shares of General Electric common stock, this transaction takes place in:
The Secondary Capital market
Which of the following best describes the goal of the firm?
Maximizing the value of the firm’s equity.
What is a General Partnership?
2 or more owners, each owner is fully responsible for liabilities
What is a limited partnership ?
One or more partners has limited liability, up the amount of capital invested in the business
What is an S corporation ?
Provides limited liability, but taxed like a partnership.
Describe an LLC
Provides limited liability, taxed like a partnership, more flexible than an S corp.
Describe a corporation
Business functions separate and apart from it’s owners. All owners have limited liability.
cash,
marketable securities
Accounts receivable,
inventories,
and prepaid expenses are all
current assets
what are examples of current liabilities
accounts payable
accrued expenses
short term notes
How do you convert turnover ratio and inventory turnover into # of days ?
365/ turnover ratio or (turnover inventory)
What is synonymous with operating profit ?
EBIT