Term
| US treasury bills; T-bills |
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Definition
| ST debt obligation of the us govt issues in 1, 3, 6, and 12 month maturities with a minimum denomination of $10,000 and in multiples of $5,000 there after. |
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Term
| Federal Agency Securities |
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Definition
ST securities issued by major government agencies
Small business admin
Veterans admin
Federal housing admin
Freddie Mae
Fannie Mac |
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Term
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Definition
| ST unsecured promissory notes--> no asset is pledged as a collateral. It is a promise to pay of a good credit rating and well know corporation. It is used as a substitute for ST bank loans. Always sell at a discount. |
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Term
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Definition
| a draft (promise to pay) issued by a firm, payable at some future date to the holder, guaranteed by a bank. |
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Term
| Negotiable Certificate of Deposit |
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Definition
| ST debt obligation of depositing institutions (bank) in denominations less than $ 100k |
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Term
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Definition
| are borrowed and lent among banks for a very short term (overnight) for liquidity purposes. |
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Term
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Definition
| Sells securities to the lender with the agreement to but back the securities at a future date and price (interest plus principal) T-bills are used as a collateral. |
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Term
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Definition
| The economic role of ____ is to finance long term capital investments. |
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Term
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Definition
LT debt of corporation and government
-corporate bonds
-government bonds
-state and municipal bonds |
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Term
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Definition
Ownership claims issued by corportion
-common stock
-preferred stock
-convertible securities |
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Term
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Definition
| Beaver bonds AKA Separate Trading of Registered Interest and Principal (STRIPs): coupon payments are detachable and the bond can be transferred into principal only (PO) and interest only (IO) securities. |
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Term
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Definition
| Coupons are mailed to the registered owner. |
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Term
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Definition
Bonds of the same issue mature on the same date
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Term
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Definition
| bonds of the same issue mature on different dates. |
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Term
| US Treasury Notes & Bonds |
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Definition
-do pay coupon payments
-face value is $100
-Notes: intermediate
-Bonds: Long term
** most liquid of capital market bc it has a secondary market |
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Term
Treasury Inflation Production Securities (TIPS)
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Definition
| where the principal changes as inflation rate changes |
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Term
| Municipal bonds (state and local govt) |
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Definition
| LT debt of municipal government to finance public facilities like schools and roads |
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Term
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Definition
| Interest and prinicpal are from general tax revenue--> approved by the community |
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Term
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Definition
| Interest and principal are from revenue generated by the project financed. |
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Term
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Definition
| LT debt (typical maturity is 15 to 30 years) where the asset financed (house) serves as the collateral for the loan. --> it is a secured debt |
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