be2 II. kolokvij Flashcards
(128 cards)
1
Q
EXTERNAL SOURCES OF FINANCE by issuing shares
A
EQUITY
FINANCING
2
Q
EXTERNAL SOURCES OF FINANCE by issuing bonds and making loans
A
DEBT FINANCING
3
Q
a booming, rising, strong market
A
bull
4
Q
a depressed, falling, weak market
A
bear
5
Q
the money a company receives minus the money it spends during a certain period
A
CASH FLOW
6
Q
part ownership of a company in the form of stocks or shares
A
equity
7
Q
funds operated by investment companies that invest people’s money in various assets
A
mutual funds
8
Q
funds that invest money that will be paid to people after they retire from work
A
pension funds
9
Q
the amount of capital making up a bond or other loan
A
principal
10
Q
the length of time for which a bond is issued (until it is repaid)
A
maturity
11
Q
the amount of interest that a bond pays
A
coupon
12
Q
unable to pay debts
A
insolvent/bankrupt
13
Q
people or institutions to whom money is owed
A
creditors
14
Q
payments by companies to their shareholders
A
dividends
15
Q
businesses that buy and sell securities
A
market makers
16
Q
the price at which a buyer is prepared to buy a security at a particular time
A
bid price
17
Q
the price at which a seller is prepared to sell a security at a particular time
A
offer price
18
Q
the rate of income an investor receives from a security
A
yield
19
Q
certificates representing part ownership of the company
A
stocks or shares
20
Q
selling stocks for the first time
A
initial public offering
21
Q
the price written on the share
A
nominal value
22
Q
the price a stock is currently being traded at on the stock exchange
A
market price
23
Q
a form of long term debt issued by a company or government
A
bond
24
Q
type of bank that combines investment banking with commercial banking, thus allowing these banks to offer a much wider variety of financial options to their customers
A
universal bank
25
A financial institution that grants loans, accepts deposits and offers basic financial products like savings accounts and checking accounts to individuals and businesses.
commercial bank
26
A financial institution that provides a variety of services for clients etc. underwriting, facilitating transactions, assisting in mergers and acquisitions, and brokering.
investment banks
27
type of payment when a account holder gives instruction to a bank to pay a fixed or variable amount directly to the landlord etc. at regular intervals
direct debit
28
Another word for "cash machine" or "cash point
atm
29
Money put into a bank account OR putting money into a bank account
deposit
30
Assets promised by a borrower to a lender if the borrower cannot repay the loan
collateral
31
A fee paid for the use of another party's money
intrest
32
The amount of profit on an investment
ROI
33
A card issued by a financial company giving the holder an option to borrow funds, these cards charge interest.
credit card
34
Borrowing money by spending more than you have in your bank account.
overdraft
35
The amount of funds in a bank account at a given time.
balance
36
Being unable to repay a loan.
default, insolvent
37
An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services.
debit card
38
Take money out of an account
withdraw
39
loan that allows a person to withdraw more money than they have in their bank account
overdraft
40
financial instruments whose prices are dependent upon, or derived from, underlying assets such as stocks, bonds, commodities, currencies, interest rates and market indices
derivatives
41
measures the change in the share prices of different companies
stock index
42
selling shares by the issuing companies for the first time
primary stock market
43
investors selling shares amongst themselves
secondary stock market
44
A speculator who expects prices to decline and sell a (borrowed) security or commodity in the hope of buying it back later at a lower price
bear
45
The market in which investors or speculators have the first opportunity to buy a newly issued security
primary
46
A share of the after-tax profit of a company, distributed to its shareholders according to the number and class of shares held by them
dividend
47
the date when the bond is repaid
maturity date
48
the interest rate on the money lent through the bond
coupon
49
The market in which investors or speculators purchase an asset from another investor
secundary market
50
the money that the bondholder lent to the issuing company
principal
51
to increase the value of a currency in an otherwise fixed system
revalue
52
to decrease the value of a currency in an otherwise fixed system
devalue
53
adjective describing a rate that changes or varies
floating
54
people who argue in favour of something
proponents
55
to fall in value in a market system
depreciate
56
to rise in value in a market system
appreciate
57
to attempt to protect onesell against future price changes
hedge
58
continuous changes in a price or value
fluctuations
59
agreements to buy something at a fixed price several months ahead
future contracts
60
The price of a nation’s currency expressed in another
currency
exchange rate
61
people who owe money to your company
debtors
62
people to whom your company owes money
creditors
63
the place where financial transactions are recorded
an account
64
a book of accounts (financial transactions)
a ledger
65
The total amount of money received during a
specific period.
turnover or total revenue
66
The costs associated with making the products that have been sold.
COGS
67
Sales revenue – COGS
gross profit
68
Operating expenses
SG&A
69
The bottom line
net profit
70
The decreasing the value of a tangible asset in an account due to age, use, wear and tear.
depreciation
71
Intangible assets with limited life have to be written off over the period they were
purchased for.
amortization
72
73
a contract agreement to buy or sell a security, commodity or financial instrument at a predetermined price, at a predetermined point in the future.
futures contract
74
offers the buyer the right, but not the obligation, to buy (call option) or sell (put option) an asset at an agreed-upon price (the strike price), either during a certain period of time, or on a specific date.
option
75
raw materials or primary products such as metals, cereals, coffee, etc., that are traded on special markets.
commodities
76
an agreement to exchange future interest payments with another company or financial institution, e.g a floating rate loan for a fixed interest rate loan.
interest rate swap
77
an agreement between two parties who exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency
currency swap
78
financial instrument whose price is derived from the value of an underlying asset
derivative
79
To trade goods or services without the exchange of money.
barter
80
The specific security, financial instrument or commodity on which a derivative is based.
underlying asset
81
A type of market where financial instruments are traded directly between two parties.
otc
82
The risk to each party of a contract that the other party will not live up to its contractual obligations. Also known as «default risk».
counterparty risk
83
The third party to a future or an option that makes sure both the seller and the buyer fulfil the contract.
clearing house
84
Protection against price changes.
hedging
85
Buying or selling assets, hoping to make a profit in the future.
speculating
86
A basic good used in commerce that is interchangeable with other goods of the same type.
commodity
87
a loan secured by the collateral of a real estate property
mortage
88
a partial payment made at the time of purchase, with the balance to be paid later.
down payment
89
estimates of people’s ability to fulfil their financial commitments
credit rating
90
property or other assets used as a
guarantee of payment
collateral
91
a process that transfers the right of home ownership from the homeowner to the bank or lender. This happens when the owner defaults on his mortgage loan payments.
foreclosure
92
A situation in which prices of some
asset(s) rise far above their actual value.
bubble
93
pooling together financial
assets that produce a cash flow and turning them into securities that can be sold to others
securitization
94
large organizations (banks, finance companies, insurance companies, labour union funds, mutual funds or unit trusts, pension funds) which
have considerable cash reserves that need to be invested
Institutional investors
95
borrowing money to amplify the outcome of a deal
leverage
96
People who are unlikely to repay their loan.
subprime borrowers
97
A security, that an investor would buy because (s)he wants to get a regular income from people who are paying off the mortgage on their houses.
cdo
98
when one company combines with another one
merger
99
when one company offers to buy or acquire another one
takeover bid
100
buying and selling stocks or shares for clients
stockbroking
101
all the investments owned by an individual or organization
portfolio
102
the ending or relaxing of legal restrictions
deregulation
103
a group of companies, operating in different fields, which have joined together
conglomerate
104
the price paid for borrowing money, paid to the lenders
interest
105
request by the insured/policyholder to be compensated for a loss covered by the insurance policy
claim
106
a payment for an insurance policy (usually monthly, yearly etc.)
premium
107
act of lowering risk exposure
risk management
108
a contract on insurance cover between the insurer and the insured (who is also called the policy holder)
insurance policy
109
the person or business taking out the insurance
insured/policyholder
110
to evaluate the risks of insuring a particular person or asset
underwriting
111
a chance or possibility of injury, loss etc.
risk
112
the amount of money a policy holder claims upon suffering a loss
compensation
113
to insure the risk of one insurance company by another
reinsurance
114
an independent agent who advises on best insurance deals
broker
115
examining a company's systems of control and the accuracy or exactness of its records, looking for errors or possible fraud where the company may have deliberately given false information
auditing
116
day-to-day recording of transactions such as sales, purchases, debts, expenses
bookkeeping
117
recording and summarizing an organization's transactions and business deals, such as purchases and sales, and reporting them in the form of financial statements
accounting
118
obligations to pay other organizations or people
liabilities
119
everything a company owns
assets
120
money that will have to be paid as tax in the future although the payment does not have to be made now
deferred taxes
121
financing a company through selling shares
equity finance
122
financing a company through issuing bonds
debt finance
123
a partial payment made at the time of purchase, with the balance to be paid later.
down payment
124
property or other assets used as a
guarantee of payment
collateral
125
a process that transfers the right of home ownership from the homeowner to the bank or lender.
to foreclose
126
A situation in which prices of some
asset(s) rise far above their actual value
bubble
127
agencis/companies who rate investments, the Big Three: Standard and Poor’s (S&P), Moody’s, Fitch Ratings
rating agencies
128
A security, that an investor would buy because (s)he wants to get a regular income from people who are paying off the mortgage on their houses.
MBS and CDO
