Shared Flashcard Set

Details

Bus100 Ch16
Business Essentials 8e Ebert Griffin Chapter 16
20
Business
Undergraduate 1
02/22/2011

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Cards

Term
Time Value of Money
Definition
While money is invested, it grows, earning interest or yielding some form of return
Term
Stock
Definition
Portion of ownership in a company
Term
Shares
Definition
Ownership of a company divided into small parts
Term
Dividend
Definition
Payment made to shareholders on a per share basis from the company's earnings
Term
Mutual Funds
Definition
Pool cash investments into various investments to create a portfolio
Term
Aggressive Growth Funds
Definition
Seek maximum long-term growth
Term
Exchange Traded Funds
Definition
Bundle of stocks and bonds that are in an index that tracks the overall movement of a market
Term
Securities
Definition
Represent secured, or financially valuable, claims on the part of investors
Term
Bond
Definition
Represents a financial claim of money owed by a company to the bondholder
Term
Primary Securities Markets
Definition
The market in which new stocks and bonds (but not mutual funds) are bought and sold by firms and governments
Term
Secondary Securities Markets
Definition
Where existing stocks and bonds are traded
Term
Securities and Exchange Commission (SEC)
Definition
Government agency that regulates US securities markets
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 proportion of funds invested in each of the investment alternatives
Term
Portfolio
Definition
Combination of all your investments
Term
Working Capital
Definition
Current assets minus current liabilities
Term
Unsecured Loans
Definition
Loan from a bank obtained without pledging collateral
Term
Compensating Balance
Definition
A portion of a loan balance kept in a separate non-interest-bearing account with the bank in place of collateral
Term
Angel Investors
Definition
Investors providing venture capital
Term
Bond Indenture
Definition
Sets the borrower's obligations as well as the financial returns for lenders
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