. Flashcards

1
Q

stock Exchange

A

Stock exchange facilities, stock brokers to trade companies, stocks, and other securities

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2
Q

Equity financing

A

Equity financing is the process of raising capital through the sale of shares

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3
Q

Debt financing

A

The act of raising capital by borrowing money from the lender or a bank to be repaid at the future date

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4
Q

portfolio

A

All investments owned by an individual or organisation

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5
Q

Interest

A

The price paid for borrowing money paid to the lenders

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6
Q

commodity market

A

Trade in a row or primary products rather than manufactured products

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7
Q

principle

A

Business principal are the core values that guide companies decision and behaviour

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8
Q

tax deductible

A

Means expenses or contributions that can lower the amount of taxes you all

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9
Q

dividend

A

Payments by companies to their shareholders

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10
Q

Bull market

A

when the investments prices are rising

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11
Q

Beer market

A

when the investments prices are falling

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12
Q

coupon

A

The amount of interest that bonds pay is

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13
Q

Break even point

A

That point when the total cost and total revenue are equal

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14
Q

going bankrupt

A

Unable to pay ones debts

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15
Q

underwriting the issue

A

The process through which an individual or institution takes on financial risks for a fee

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16
Q

Listed companies

A

listed companies means a company who has its equity share capital officially listed on a particular stock exchange

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17
Q

maturity, date of a bond

A

The date on which the principal amount of the note, draft acceptance, bond, or other debt instrument becomes due

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18
Q

Bond

A

Certificates of debt issued by governments or companies to raise money

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19
Q

stock and shares

A

Certificates representing part ownership of a company

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20
Q

Yield

A

The rate of income, an investor receives from security

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21
Q

to plunge

A

To fall very quickly, and suddenly

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22
Q

Market leader

A

A company with the largest market share in the industry they are the one who has the highest revenue, every other company tried to copy the strategy, etc

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23
Q

Market Challenger

A

The company already hoarding, the majority share in the market and competing with the current market leader

24
Q

Market followers

A

strategy used by an organisation who imitate what the market leader does

25
Q

USP

A

Unique, selling proportion means informing customers about how our own brand or product is better than its competitors

26
Q

market segment

A

Dividing a market into distinct groups of buyers who have different requirements or buying habits

27
Q

niche

A

a focused to differentiate themselves from the competition

28
Q

equities

A

part ownership of a company in the form of stocks or shares

29
Q

horizontal integration

A

Is when a company gets bigger by acquiring competitors in the same field of activity

30
Q

Vertical integration

A

Is acquiring companies involved in other parts of the supply chain usually to make cost savings

31
Q

backward integration

A

Is acquiring suppliers of raw materials or components

32
Q

forward integration

A

Is buying distributors or retail outlets

33
Q

raid

A

A company can buy as many shares as possible on the stock market to gain majority

34
Q

takeover bid

A

A company can offer to buy all shareholder’s shares at the certain price at during a limited period of time

35
Q

friendly takeover bid

A

If a company’s board of directors agree to take over

36
Q

friendly takeover

A

If the shareholders agreed to sell, it becomes friendly takeover

37
Q

hostile takeover bid

A

If the company doesn’t want to be taken over

38
Q

hostile takeover

A

When the taken over progress is successful

39
Q

Joint venture

A

Two or more companies decide to work together for a specific project or product

40
Q

controlling interest

A

when he or she owns more than 50% of the company is voting shares, giving him or her the deciding voice in shareholders meetings and control over companies direction

41
Q

Diversify

A

when companies can also buy businesses in completely different fields to reduce the risk involved in operating in only one industr

42
Q

conglomerate

A

Group of companies operating in different fields which have joined together

43
Q

subsdiary

A

Economically it belongs to the founding company. The parent company can support it with money, take financial resource from it.

44
Q

market capitalisation

A

The total value of the companies share of stocks

45
Q

Pension fund

A

create an opportunity for its members to save for their retirement years during the active years, using the income of the active years in save an efficient way

46
Q

What are the two main ways established companies can raise money?

A

They can issue bonds and shares

47
Q

What are the two main ways governments can raise money?

A

They can raise taxes and issue bonds

48
Q

how do companies regular the finance their activities?

A

with issuing bonds by way of internally generated, cash flows. If they need more money, they can either sell shares or borrow, usually by using bonds

49
Q

what companies do when they want to expand?

A

Increase advertising, use social media, follows trends making products or services partner with other businesses franchising

50
Q

what’s the difference between bonds and shares in terms of income and repayment?

A

Bonds offer fixed interest payments, while shares provide income through dividends and capital gains

51
Q

Explain the meaning of public in the name of public limited company

A

public it’s legally allowed to every person to buy shares in a company

52
Q

describe market, structure, and composition

A

Market structure is when companies are able to differentiated and categorised based on the type of goods they sell, and how external factors and elements influence their operation

Market competition is in a business environment for different firms located both within and out of the country had to compete with one another solelz on the merits of the goods and services

53
Q

what is the difference between horizontal and vertical integration?

A

Horizontal when a company, gets a bigger about acquiring competitors in the same field

Vertical is acquiring companies involved in other parts of a the supply chain

54
Q

what is the difference between backward and forward integration?

A

in short backward integration involves buying part of the supply chain that occurs priority, companies manufacturing process while forward integration involves buying part of the process that occurs after the companies manufacturing process

55
Q

what is the difference between a raid and takeover bid?

A

raid is when a company can buy as many shares as possible on the stock market, but a takeover bid is when a company can offer to buy shareholders during a limited period of time

56
Q

What’s the difference between a friendly and a hostile takeover bid

A

Friendly takeover bid if the shareholders agrees to sell

Hostile takeover bid: hostile takeover merely requires the shareholders agreement