Details Title: Chapter 16 Description: n/a Total Flash Cards: 36 Created: 12/04/2008 15:33:52		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Management Flashcards
Cards in this set: Term Securities Definition Represent secured or financially valuable claims on the part of investors. Term Securities Markets Definition Markets in which stocks and bonds are sold. Term Stock Definition Represents an ownership claim on the assets of a corporation. Term Bond Definition Represents a financial claim of money owned by a company to the bondholder. Term Primary Securities Markets Definition The market in which new stocks and bonds (but not mutual funds) are brought and sold by firms and governments. Term Secondary Securities Markets Definition Where existing bonds and stocks are traded. Term Securities and Exchange Commission Definition The government agency that regulates U.S. securities markets. New securities must be approved by the SEC. Term Dividend Definition A payment to shareholders, on a per-share basis, out of the company's earnings. Term Stock Values Par Definition Declared face value at time of issue. Term Stock Values Market Definition Current share price in a market Term Stock Values Book Definition Proportional worth of owners' equity Term Stock Exchange Definition An organization formed to provide an institutional setting in which stocks can be bought or sold. The exchange enforces certain rules to govern its members' trading activties. Term Trading Floor Definition The physical location in a exchange where stocks are traded. Term Stock Brokers Definition Earn commissions by executing buy-and-sell orders from nonexchange members. Term Discount Brokers Definition Offer lower fees to investors than do full service stock brokers. Term Online Trading Definition Covenient access to the internet, fast no nonsense transactions, opportunity for self traders to direct their investments. Term Full Service Brokers Definition A full service brokerage can offer clients consulting advice in personal financial plannning, estate planning, and tax strategies, along with a wider range of investments. Term Intitial Public Offerings Definition The first sale of a companys stock to the general public. Term The New York Stock Exchange Definition For many people, "the stock market" means the New York Stock Exchange. Term The American Stock Exchange (AMEX) Definition The second largest floor based U.S. exchange is located in New York City. Term Regional Stock Exchange Definition Seven regional stock exchanges were organized to serve investors in places other than New York. Term Global Stock Exchanges Definition The value of exchange listed on foreign exchanges continues to grow. Term Over the Counter Market (OTC) Definition So called because its original traders kept supplies of shares on hand and , as opportunities arose, sold them over the office counter to interested buyers. Term National Association of Securities Dealers Automated Quotation (Nasdaq) System Definition The worlds oldest electronic stock market. Orders are gathered and executed on a computer network. Term Fantasy Stock Markets Definition Internet based games that provide an investment experience that is educational, challenging, and entertaining. Term Mutual Fund Definition A portfolio of stocks, bonds, and other securities purchased with pooled investments from individuals and organizations. Term Money Market Mutual Fund Definition Funds stressing safety and stability. Term Balanced Funds Definition Funds stressing conversative capital growth Term Aggressive Growth Funds Definition Funds stressing maximum long term capital growth Term The Risk-Return Relationship Definition Safer investments tend to offer lower returns; riskier investments tend to offer higher returns. Term Diversification Definition Buying several different kinds of investments rather than just one so that the risk of loss is reduced by spreading the total investment across more stocks. Term Asset Allocation Definition The the relative amounts of funds invested in each of the investment alternatives. Term The Dow Jones Industrial Average (DJIA) Definition The most widely cited U.S. market index. Measures the performance of financial markets by focusing on 30 blue-chip companies as reflectors of economic health. Term The S&P 500 Composite Index Definition Consistsof 500 stocks,including 400 industrial firms, 40 utilities, 40 financial institutions, and 20 transportation companies. Term Nasdaq Composite Index Definition All Nasdaq-listed companies are included in the index, for a total of more than 3,300 firms both domestic and foreign. Term The National Association Of Securities Dealers Definition The largest private sector securities-regulation organization in the world. Every broker/dealer is required by law to be a member of the NASD and to pass qualification exams and meet standards for financial soundness.