What is the term for the first public issue of a financial instrument by a firm? Bond issuance Private placements Secondary offerings Initial public offerings (IPOs)

Initial public offerings (IPOs)

Financial Markets & Instruments: Market Types, Securities Trading & Short-Term Investments

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(100)

What are the structures or arenas through which funds flow?

Where do corporations raise funds through new issues of securities such as stocks and bonds?

What is the term for the first public issue of a financial instrument by a firm?

Where are financial instruments traded once they are issued?

Who are the economic agents with excess funds?

Who are the economic agents in need of funds?

What is the ability to turn an asset into cash quickly at its fair market value called?

Where are debt securities or instruments with maturities of less than 1 year traded?

What are markets called that do not operate in a specific fixed location, with transactions occurring via telephones, wire transfers, and computer trading?

What are short-term obligations issued by the US government called?

What are short-term funds transferred between financial institutions usually for no more than 1 day called?

What are agreements involving the sale of securities by one party to another with a promise to repurchase the same securities from the buyer at a specified date and price?

What are short-term unsecured promissory notes issued by a company to raise short-term cash called?

What are bank-issued time deposits that specify an interest rate and maturity date and are negotiable called?

What are time drafts payable to a seller of goods, with payment guaranteed by a bank, called?

What are trade debt (bonds) and equity (stocks) instruments with maturities of more than 1 year called?

What is the fundamental ownership claim in a public corporation called?

What are loans to individuals or businesses to purchase a home, land, or other real property called?

What are long-term bonds issued by corporations called?

What are long-term bonds issued by the US government called?

What are long-term bonds issued by state and local governments called?

What are long-term bonds collateralized by a pool of assets and issued by agencies of the US government called?

What are loans to commercial banks and individuals called?

Where are cash flows from the sale of products or assets denominated in a foreign currency transacted?

What is the sensitivity of the value of cash flows on foreign investments to changes in a foreign currency's price in terms of dollars called?

Where do derivative securities trade?

What is an agreement between two parties to exchange a standard quantity of an asset at a predetermined price at a specified date in the future called?

What is part of the Wall Street Reform and Consumer Protection Act passed in 2010 in response to the financial crisis?

What prohibits bank holding companies from engaging in proprietary trading?

What is the main regulator of securities markets and the exchange on which instruments are traded?

What is a legal document that describes the issue and any risks associated with the issue?

What perform the essential function of channeling funds from those with surplus funds to those with shortages of funds?

What are depository institutions whose major assets are loans and major liabilities are deposits?

What are depository institutions in the form of savings associations, savings banks, and credit unions called?

What protect individuals and corporations from adverse events?

What helps firms issue securities and engage in related activities such as securities brokerage and securities trading?

What make loans to both individuals and businesses but do not accept deposits, relying on short and long-term debt for funding?

What pool financial resources of individuals and companies and invest these in a diversified portfolio of assets?

What offer savings plans where fund participants accumulate savings during working years before withdrawing them during retirement years?

What use technology to deliver financial solutions in a way that competes with traditional financial methods?

What is it called when a corporation sells its stock or debt directly to investors without going through a financial institution?

What is a transfer of funds between suppliers and users of funds through a financial intermediary called?

What is an economic agent appointed to act on behalf of smaller investors in collecting information and/or investing funds on their behalf called?

What are financial claims issued by a financial institution that are more attractive to investors than the claims directly issued by corporations called?

What is the ability of an economic agent to reduce risk by holding a number of different securities in a portfolio called?

What is the concept that cost reduction in trading and other transaction services results in increased efficiency when financial institutions perform these services?

What are the interest rates actually observed in financial markets called?

What play a major part in the determination of the value of financial instruments?

What theory views equilibrium interest rates in financial markets as a result of the supply of and demand for loanable funds?

What theory categorizes financial market participants as net suppliers or demanders of funds?

What are funds provided to the financial markets by net suppliers of funds called?

What is the total net demand for funds by fund users called?

What are the factors that have a direct impact on the supply of funds?

What are the factors that have an inverse impact on the supply of funds?

What are the factors that have a direct impact on the demand for funds?

What is the factor that has an inverse impact on the demand for funds?

What is the percentage increase in the price of a standardized basket of goods and services over a given period of time called?

What is the nominal risk-free rate that would exist on a security if no inflation were expected called?

What is the percentage change in the buying power of a dollar called?

What theorizes that nominal risk-free rates observed in financial markets must compensate investors for reduced purchasing power due to inflation and an additional premium for forgoing present consumption?

What is the risk that a borrower may fail to meet their obligations in accordance with agreed terms called?

What is the risk that a borrower will not be able to make the required payments on their debt obligation as agreed upon called?

What are increases in required yield needed to offset the possibility that the borrower will not repay the promised interest and principal in full or as scheduled called?

What is the risk that a security cannot be sold at a predictable price with low transaction costs at short notice called?

What can be sold at a predictable price with low transaction costs and can be converted into its full market value at short notice?

What are increases in required or promised yields designed to offset the risk of not being able to sell the asset in a timely fashion at fair value called?

What are the special provisions (taxability, convertibility, callability) that impact the security holder beneficially or adversely called?

What offers the holder the opportunity to exchange one security for another type of the issuer's securities at a preset price?

What is the length of time a security has until maturity called?

What is the comparison of market yields on securities, assuming all characteristics except maturity are the same, called?

What is the difference between required yield on long and short-term securities of the same characteristics except maturity, which can be positive, negative, or zero?

What theory states that at any given point in time, the yield curve reflects the market's current expectations of future short-term rates?

What theory states that long-term rates are equal to geometric averages of current and expected short-term rates plus liquidity risk premiums that increase with the security's maturity?

What theory assumes that investors do not consider securities with different maturities as perfect substitutes?

What is an expected rate (quoted today) on a security that originates at some point in the future called?

What is the concept that a dollar received today is worth more than a dollar received at some future date called?

What is a single cash flow occurring at the beginning and end of the investment horizon with no other cash flows exchanged called?

What is a series of equal cash flows received at fixed intervals over the investment horizon called?

What is a payment made at the beginning of the payment interval called?

What are payments made at the end of the period called?

What is the interest rate on a bond instrument used to calculate the annual (periodic) cash flow the bond issuer promises to pay the bondholder called?

What is the interest rate an investor should receive on a security given its risk called?

What is the interest rate an investor expects to receive on a security if they buy the security at its current market price, receive all expected payments, and sell the security at the end of their investment horizon called?

What is the actual interest rate earned on an investment called?

What is a historical (ex post/after the fact) measure of the interest rate called?

What is the process by which financial security prices move to a new equilibrium when interest rates or a security-specific characteristic changes called?

What is a long-term debt obligation issued by corporations and government units called?

What is it called when the present value of a bond is greater than its face value?

What is it called when the present value of a bond is less than its face value?

What is a bond called when its coupon rate is greater than the required rate of return and its current market price is greater than its face value?

What is a bond called when its coupon rate is less than the required rate of return and its current market price is less than its face value?

What is a bond called when its coupon rate is equal to the required rate of return and its current market price is equal to its face value?

What are bonds that pay interest based on a stated coupon rate called?

What are bonds that do not pay coupon interest called?

What is the return or yield the bondholder will earn on the bond if they buy it at its current market price, receive all coupon and principal payments as promised, and hold the bond until maturity called?

What is the process of finding the present value of an infinite series of cash flows on the equity discounted at an appropriate interest rate called?

What is it called when dividends on a stock are expected to remain at a constant level forever?

What is it called when dividends on a stock are expected to grow at a constant rate?

What is the percentage change in a bond's present value for a given change in interest rates called?

What has economic meaning as sensitivity or elasticity?

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