business finance test 1

  1. broker market
    the securities exchanges on which two sides of a transaction, the buyer and seller, are brought together to trade securities.
  2. dealer market
    the market in which the buyer & seller are not brought together directly but instead have their orders executed by securities dealers that "make markets" in the given security.
  3. Money Market
    a financial relationship created between suppliers and demanders of short-term funds.
  4. Capital Market
    a market that enables suppliers & demanders of long-term funds to make transactions.
  5. primary market
    financial market in which securities are initially issued; the only market in which the issuer is directly involved in the transaction.
  6. secondary market
    financial market in which preowned securiteies (those that aren't new) are traded.
  7. Commercial banks
    institutions that provide savers with a secure place to invest therir funds and that offer loans to individual and business borrowers.
  8. investment banks
    instituitions that assist companies with raising financil restructurings, and engage market
  9. bond
    long term debt instrument used by business and government to raise large sums of money, generally from a diverse group.
  10. preferred stock
    a special form of ownership having a fixed periodic dividend that must be paid prior to payment of any dividends to common stockholders.
  11. common stock
    units of ownership (equity) in a corporation; earn a return by receiving dividends or by realizing increases in share price.
  12. underwriting
    essentially where a financial firm buys the whole security and then resales it.
  13. zero based bonds
    pay no interest.
  14. annuity
    series of equal cash payjehts made at regular intervals.
Card Set
business finance test 1