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Definition
| securities providing payoffs that depend on the values of other assets. |
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| options, futures contracts |
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| What is a security with no maturity date considered long term or short term? |
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Definition
| stocks bonds, real estate, commodities, etc. |
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Definition
| allocation of an investment portfolio across broad asset classes (which asset type) |
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Definition
| choice of specific securities within each asset class. |
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Term
| characteristics of money market |
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Definition
| short-term, highly liquid, relatively low-risk instruments, safety of the principal investment, low rates of return |
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| Passive management strategy |
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Definition
| falls under the efficient markets hypothesis, in that developing the best portfolio with little movement its best |
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| Active management strategy |
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Definition
| searching for in-efficiencies in the market and moving often to capture the arbitrage opportunities |
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Term
| What do equity holders receive? |
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Definition
| a residual claim on the firm |
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| What is the key to market efficiency? |
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Definition
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Term
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Definition
| more supply than demand when building the book (Bad) |
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Definition
| less supply than demand (good) |
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Term
| Private Placement stocks cannot be traded where? |
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Definition
| secondary market, or auction market |
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Term
| What do transaction orders cause? |
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Definition
| Inefficiencies in the market |
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