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Finance 2000
Exam 1
34
Finance
Undergraduate 2
02/10/2011

Additional Finance Flashcards

 


 

Cards

Term
The value of an asset always increases
Definition
Which of the following is NOT a basic finanical concept
Term
Debt, Equity
Definition
Corporations typically finance operations with either_____or_____.
Term
A t-bill
Definition
Which of the following is considered short-term (less than one year) debt
Term
To maintain low levels of debt on its balance sheet
Definition
Why might a firm choose to issue common stock as opposed to another financial instrument
Term
Increase, investors will view the debt as more risky
Definition
Moody's just downgraded the debt of Buffalo Wild Wings basd on possibility that the company will default on its bonds. All things being equal, we would expect the interest rate on BWW's bonds to....
Term
Broker Banks
Definition
Is not a common type of bank
Term
A long term bond
Definition
A train leaves the station a 6 pm west at 80 mph. A second train leaves the station 3 hours later. The conductor is holding a debt instrument he just received from his broker. Which of these could that debt instrument be?
Term
Arbitrage
Definition
The practice of finding ways to profit with no risk
Term
A secondary offering
Definition
A company that is currently publicly traded decides to issue new shares. Issuing these additional shares to the market is called...
Term
An investment bank
Definition
The company above decides to go ahead and offer the new shares. What type of bank would the company go to for help in underwriting the new securities?
Term
Money marker
Definition
Market of short debt
Term
Equity
Definition
Asst= liabilities+______
Term
t-bills, certificates of deposit
Definition
Name 2 short term debt instruments
Term
commerical banks and retail banks
Definition
Name 2 common types of banks
Term
issue securities, consulting on mergers and acquistions
Definition
Name 2 functions of investment bank
Term
registered investment company
Definition
What is a RIC?
Term
Mutual fund, real estate investment trust
Definition
Name a common type of RIC
Term
Stockholders (shareholders)
Definition
Owners of a corporation are called?
Term
dividends
Definition
Corporations return money to shareholders through...
Term
t-bills, t-notes, t-bonds
Definition
Short term, medium term, long term treasury debt
Term
Common stock
Definition
Types of shares that typically have voting rights
Term
Moody's, Standards & Poors (S&P)
Definition
Name 2 debt rating agencies
Term
liquidty, inflation rate
Definition
Name 2 components of an interest rate
Term
t-bill
Definition
What finanical instrument is expected to have lowest return?
Term
Preferred
Definition
_______ shareholder have first rights to dividends
Term
Tulips, 1920's stock market crash
Definition
Name or describe a historic bubble other than housing
Term
IPO ( Initial public offering)
Definition
Privetly held company offer stock public for 1st time
Term

Brokers

 

Definition
________ connect buyers and sellers of financial securities in the secondary market
Term
Security exchange commison
Definition
Financial securties are registered through the....
Term
Barting
Definition
Before currency________ we used to transact
Term
flat
Definition
Money that is only considered currency because the government says it is...
Term
buy bonds from treasury
Definition
How would the federal Reserve increase money supply?
Term
FDI (Federal department incorporation)
Definition
The_____ insues bank deposits up to $250,000
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