Shared Flashcard Set

Details

Series 79 (4)
chapter 4
18
Finance
Professional
07/25/2010

Additional Finance Flashcards

 


 

Cards

Term
GNP vs. GDP
Definition

GNP - value of all goods produced by national economy

GDP - output of goods produced by labor and property in nation

Term
Inflation
Definition

Rise in the prices of goods

Deflation - decline in prices of goods

Disinflation - reduction in level of inflation

Stagflation - high inflation and unemployment

Term
Leading econ. indicators
Definition

avg manufacturing production

initial unemployment claims

new consumer goods orders

vendor performance

contracts and order for plant and equipment

building permits

S&P 500 stocks

Money supply

change in business credit

interest rate spreads (10 yr treasury - fed. funds)

consumer expectation

Term

Coincident econ. indicators

Definition

nonagriculture payrolls

personal income - transfer pmts

industrial production

manufacturing and trade sales

Term

Lagging econ. indicators

Definition

avg duration of unemployment

relationship of inventories to sales

labor cost per output of manufactured goods

prime rate charged by bank

commercial and industrial loans

consumer installment credit to personal income

CPI index

Term
Market Caps
Definition

Large cap - >1B

Mid cap - 2-10B

Small cap - 300M-2B

Micro cap - 50-300M

Nano - <50M

Term
Keynesian economics
Definition
Government intervention is key for sustained economic growth through fiscal policy and taxation
Term
Supply side economics
Definition
reducing taxes and size of gov. to stimulate economy by giving people money to invest
Term
Monetary policy
Definition
control money supply and credit affecting interest rates and controlling economy
Term
reserve requirements
Definition
amount of money set by Fed that banks need to keep on hand
Term
discount rate
Definition
Fed sets rate that are charged for loans to banks
Term
Federal funds
Definition
short term loans from banks to banks that satisfy reserve requirements (very volatile)
Term
growth strategy
Definition

investing in stocks that expect to grow faster than peers

high earnings and revenue

low dividends

Term
value investing
Definition
investing in stocks that are underpriced fundamentally to ratios
Term
growth at a reasonable price
Definition

combines value and growth

low P/E, low PEG, low price-to-book

Term
momentum trading
Definition
pricing moving in a certain direction will continue that way in near future
Term
market neutral
Definition
buy and sell securities that are undervalued or overvalued
Term
distressed investing
Definition
investors search for companies in default and fund restructuring to cash in when company turns around
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