3rd grading Flashcards
funds available for a short time
money market instruments
issued by the government and maturity within a year
treasury bills
issued by financially sound business to find investment in INVENTORIES and RECEIVABLES
commercial papers
issued by mutual fund companies
money market funds
long term debt, security reflecting the debts of a government promising to pay a fixed interest to the bondholder for a definite time
bond
longer term than money market instrument, specified term
note
long term debts (4)
treasury notes and bons
federal agency debt
municipal bond
corporate bonds
represent ownership in a corporation
stock
no maturity date, more risky, no voting rights, has preference
preferred stock
units of ownership in a public corporation
common stock
meeting places of suppliers and users of various types of funds
financial market
buyers and sellers negotiate and transact business directly
primary market
sale of new securities to the general public
public offering
IPO stands for
Initial public offering
sale of a security to a private buyer
private placement
previously issued securities are bought and sold
secondary market
securities with short term maturities are borrowed or loaned
money market
capital market
long term
banks in the countryside or rural areas
thrift banks
extend credit to the retail and consumer market, transactions are many but small
commercial banks
lend money to multinational companies
universal banks
provide loans to big corporation and government
investment companies
extend financing to companies that needs funds
leasing companies
can provide financing to companies or raise funds through bonds
investment companies
