Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
financial management
ch 2
| Question | Answer |
|---|---|
| three ways capital transfer takes place | 1. Direct transfers of money 2. indirect transfers through investment banks 3. Indirect transfer through financial intermediary |
| done on the new securities issued issued by the corporations. | primary market transaction |
| type of financial markets | spot markets futures markets, money markets, capital markets , primary markets, secondary markets, private markets, public markets. |
| the markets in which assets are bought or sold for "on the spot" delivery | spot markets |
| Themarkets in which participants agree today to buy or sell an asset at some future date | futures markets |
| The financial markets in which funds are borrowed or loaned for short periods (less than one year) | money markets |
| the financial markets for stocks and for intermediate or long term debt (one year or longer) | Capital markets |
| markets in which corporations raise capital by issuing new securities. | Primary markets |
| merkets in which securities and other financial assets are traded among investors after they have been issued by corporations. | secondary markets |
| markets in which transactions are worked out diretly between two parties | PRIVATE MARKETS |
| MARKETS IN WHICH STANDADRIZED contracts are traded on organized exchanges | public markets |
| any financial asset whose value is derived from the value of some other "underlying" asset | derivative |
| an organization that underwrites and distributes new investment securities and helps businesses obtain financing | investment bank |
| the traditional department store of finance serving a variety of savers and borrowers. | commercial bank |
| a firm that offers a wide range of financial services , including investment banking, brokerage operations, insurance and commercial banking. | financial services corporation |
| organizations that pool investor funds to purchase financial instruments and thus reduce risks through diversification. | mutual funds. |
| mutual funds that invest in short term, low risk securities and allow investors to write checks against their accounts. | money market funds |
| organizatons that operate much like hedge funds, but rather than purchasing sone of the stock of a firm, they buy and then manage entire firms. | private equity companies. |
| similar to mutual funds because they accept money from savers and use the funds to buy various securities , but there are some important differences. | Hedge funds. |
| corporations that accept money from savers and then use these funds to buy stocks, long term bonds, or short term debt instruments issued by businesses or government units. | mutual funds. |
| the investment bankers are also called | underwriters |
| coooperative associations whose members are supposed to have a common bond, such as being employees of the same firm. | credit unions |
| retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments of commercial banks or by life insurance companies. | pension funds |
| take savings in the form of annual premiums , invest these funds in stocks, bonds, real estate, and mortagages, and make payments to the beneficiaries of the insured parties. | life insurance companies |
| similar to regular mutual funds and are oftern operated by mutual fund companies | exchange trade funds |
| the most active secondary market | stock market |
| the two leaders of different stock markets | new york stock exchange (NYSE) AND the nasdaq stock market |
| formal organizations having tangible physical locations that conduct auction markets in designated securities | physical location exchanges |
| a large collection of brokers and dealers, connected electronically by telephones and computers , that provides for trading in unlisted securities | over the counter market |
| includes all facilities that are needed to conduct security transaction not conducted on the physical location exchange. | dealer market |
| a corporation that is owned by a few individuals who are typically associated with the firms management | closely held corporation |
| a corporation that is owned by a relatively large number of individuals who are not actively involved in the firm's management | publicly owned corporation |
| The act of selling stock to the public at large by a closely held corporation or its principal stockholders. | going public |
| the market for stocks of companies that are in the process of going public | initial public offering market |
Created by:
100002456119902