Term
|
Definition
| the art and science of managing a firms money so that it can meet its goals. |
|
|
Term
|
Definition
| the inflows and outflows of cash for a firm |
|
|
Term
|
Definition
| the process of making sure that a firm has enough cash on hand to pay bills as they come due and to meet unexpected expenses |
|
|
Term
|
Definition
| short term investments that are easily converted into cash. treasury bills, certificates of deposit, and commercial paper (IOU) |
|
|
Term
|
Definition
| sales for which a firm has not yet been paid |
|
|
Term
|
Definition
| investments in long lived assets, such as land buildings machinery equipment and informational systems. that are expected to provide benefits over a period longer than one year |
|
|
Term
|
Definition
| the process of analyzing long term projects and selecting those that offer the best returns while maximizing the firms value. |
|
|
Term
|
Definition
| loans for which the borrower does not have to pledge specific assets as security |
|
|
Term
|
Definition
| the extension of credit by the seller to the buyer btwn the time the buyer recieves the goods or services and when it pays for them |
|
|
Term
|
Definition
| purchases for which a buyer has not yet paid the seller |
|
|
Term
|
Definition
| purchases for which a buyer has not yet paid the seller. |
|
|
Term
|
Definition
| an agreement btwn a bank and a business that specifies the max amount of unsecured short term borrowing the bank will allow the firm over a given period, typically one yr |
|
|
Term
| revolving credit agreement |
|
Definition
| a guaranteed line of credit wherby a bank agrees that a certain amount of funds will be available for a business to borrow over a given period, typically 2-5 yrs |
|
|
Term
|
Definition
| loans for which the borrower is required to pledge specific assets as collateral or security |
|
|
Term
|
Definition
| a form of short term financing in which a firm sells its accounts receivable outright at a discount to a factor |
|
|
Term
|
Definition
| a business loan with a maturity of more than a yr, can be unsecured or secured |
|
|
Term
|
Definition
| the amount borrowed by the issuer of a bond, also called par value |
|
|
Term
|
Definition
| a long term loan made against real estate as collateral |
|
|
Term
|
Definition
| a security that represents an ownership interest in a corp |
|
|
Term
|
Definition
| payments to stockholders from a corp's profits |
|
|
Term
|
Definition
| payments to stockholders in the form of more stock, may replace or supplement cash dividends |
|
|
Term
|
Definition
| profits that have been reinvested in a firm |
|
|
Term
|
Definition
| an equity security for which the dividend amount is set at the time the stock is issued and the dividend must be paid before the company can pay any dividends to common stockholders |
|
|
Term
|
Definition
| investments certified issued by corps and gov that represented either equity or debt. |
|
|
Term
|
Definition
| investment professionals who are paid to manage other ppl's money. |
|
|
Term
|
Definition
| the securities market where new securities are sold to the public |
|
|
Term
|
Definition
| the security market where old (already used) securities are bought and sold, or traded, among investors, includes broker markets, dealer markets, the over the counter market and the commodities exchanges. |
|
|
Term
|
Definition
| firms that act as intermediaries buying securities from corps and gov and reselling them to the public |
|
|
Term
|
Definition
| the process of buying securities form corps and govs and reselling them to the public, the main activity of investment bankers. |
|
|
Term
|
Definition
| a person who is licensed to buy and sell securities on behalf of theri clients. |
|
|
Term
|
Definition
| bonds issued by statesm counties, cities, and other state and local gov agencies |
|
|
Term
|
Definition
| letter grades assigned to bond issues to indicate their quality or level of rish, assigned by rating agencies such as Moody's, and Standard & Poor's (S&P) |
|
|
Term
|
Definition
| a financial service company that pools investors funds to buy a selection of securities that meet its stated investment goals |
|
|
Term
| exchanged traded fund (ETF) |
|
Definition
| a security similar to a mutual fund that holds a broad basket of stocks with a common theme but trades on a stock exchange so that its price changes throughout the day |
|
|
Term
|
Definition
| legalling bindin obligations to buy or sell specified quantities of commodities or financial instruments at an agreed upon price at a future date |
|
|
Term
|
Definition
| contracts that entitle holders to buy or sell specified quantities of common stocks or other financial instruments at a set price during a specified time |
|
|
Term
|
Definition
| national and regional securities exchanges that bring buyers and sellers together through brokers on a centralized trading floor (Wall St.) |
|
|
Term
|
Definition
| securitites markets where buy and sell orders are executed through dealers, or "market makers" linked by telecommunications networks |
|
|
Term
| National Association of Securities Dealers Automated Quotation (NASDAQ) system |
|
Definition
| the largest dealer market and the first electronic stock market, which is a sophisticated telecommunications network that links dealers throughout the US |
|
|
Term
|
Definition
| markets, other thatn the organized exchanges, on which small companies trade; includes the over the counter bulletin board and the pink sheets |
|
|
Term
| electronic communications networks (ECNs) |
|
Definition
| private trading networks that allow institutional traders and some individuals to make direct transactions in the 4th market |
|
|
Term
|
Definition
| the use of information that is not available to the general public to make profits on securities transactions (Martha Stewart) |
|
|
Term
|
Definition
| a corrective measure that under certain conditions stops trading in the securities markets for a short term cooling off period to limit the amount the market can drop in one day. |
|
|
