Understanding Key Financial Concepts and Instruments in Bond and Stock Markets

Flashcard

Learn Mode Icon

Learn Mode

Match

Library

Create

Flashcards

Flashcards

Library

Match (Coming Soon)

Finance - Personal Finance

jake12testoswi Created by 10 mon ago

Cards in this deck(48)

Which of the following is NOT a rule of bond trading?

Blur Image

What term describes conflicts of interest between managers and stockholders?

Blur Image

An annuity is a financial product that has _____ payments every period.

Blur Image

In an ordinary annuity, when do cash flows occur?

Blur Image

In an annuity due, cash flows happen at the _____ of the period.

Blur Image

What is the measure of market or systematic risk, where the beta of the market is 1?

Blur Image

What are bonds called that can be paid off by the issuing company at any time?

Blur Image

In the Security Market Line (SML), what does the slope represent?

Blur Image

Which process involves deciding what projects to take on using NPV?

Blur Image

What term describes how a company funds itself, including stock and bond sales?

Blur Image

What is the management of a firm's day-to-day financial needs called?

Blur Image

When moving money from left to right on a timeline, what financial process is used?

Blur Image

When moving money from right to left on a timeline, what financial process is used?

Blur Image

What are cash payments made directly to stockholders, usually each quarter, called?

Blur Image

What type of dividend indicates that the extra amount may not be repeated in the future?

Blur Image

Which dividend is similar to an extra dividend but definitely won't be repeated?

Blur Image

What type of dividend is declared when some or all of the business has been sold?

Blur Image

On what date does the board declare a dividend, making it a liability of the firm?

Blur Image

What is the date called that occurs one business day before the date of record?

Blur Image

On what date are holders of record determined to receive the dividend payment?

Blur Image

On what date are dividend checks mailed to stockholders?

Blur Image

What is the rate called that compounds only once per year, reflecting the true annual return?

Blur Image

Which form of the efficient market hypothesis states that trading data is the only information?

Blur Image

Which form of the efficient market hypothesis includes all publicly available information?

Blur Image

Which form of the efficient market hypothesis includes all information, public and insider?

Blur Image

Which asset class has the highest risk and return, while treasury bills have the lowest?

Blur Image

What is the first time stock is sold to the general public in the primary market called?

Blur Image

What is the discount rate that makes NPV equal to zero, also known as the actual rate of return?

Blur Image

What is a bell-shaped curve defined by mean and standard deviation, often used in statistics?

Blur Image

What decision rule involves accepting projects with positive NPV and rejecting those with negative NPV?

Blur Image

What is a collection of assets, usually stocks, called?

Blur Image

What term describes the value of a particular item relative to the value of a portfolio?

Blur Image

What is the term for the weighted averages of the betas within a portfolio?

Blur Image

What are bonds called that sell for more than their par or face value?

Blur Image

What are bonds called that sell for less than their par or face value?

Blur Image

What is a bond called that sells at its par value?

Blur Image

What is the primary goal of financial management?

Blur Image

What are some problems associated with the internal rate of return (IRR)?

Blur Image

What type of cash flows will only change if a project is undertaken?

Blur Image

What are costs called that have already occurred and should not be included in project analysis?

Blur Image

What are costs called that represent the value of the next best alternative foregone?

Blur Image

What type of risk affects the entire market and is considered non-diversifiable?

Blur Image

What type of risk affects a small subset of things like a company or industry?

Blur Image

In the Security Market Line, what does the y-intercept represent?

Blur Image

What is the measure of volatility that indicates total risk?

Blur Image

What is the term for increasing the number of shares while reducing the price per share?

Blur Image

What is the term for decreasing the number of shares while increasing the price per share?

Blur Image

What is the required return a company needs to make to pay back all its investors?

Blur Image

Ask Our AI Tutor

Get Instant Help with Your Questions

Need help understanding a concept or solving a problem? Type your question below, and our AI tutor will provide a personalized answer in real-time!

How it works

Ask any academic question, and our AI tutor will respond instantly with explanations, solutions, or examples.

Get Started

Browse questions and discover topic-based flashcards
Practice with engaging flashcards designed for each subject
Strengthen memory with concise, effective learning tools

Discover By Topic