Flashcards in Chapter 14 Quiz Deck (10)
The proportional breakdown of cash and securities.
Cash and securities mix decision
A policy that defines the company's posture toward risk and return and specifies how the policy should be implemented.
The possibility that the company will not be able to meet ongoing operating expenditures.
The possibility that the company will be unable to cover financing-related expenditures such as lease payments, interest, principal repayment, and preferred stock dividends.
Risk that is relevant to diversified investors which is the degree of sensitivity of the company's stock returns to market-wide returns.
The interest of the principals (stockholders) do not coincide with those of the agents (managers).
Specialized account in which financial institution hold securities, automatically reinvests interest and other investment-related cash receipts, transfers funds per corporate instructions, monitors issuers actions such as calls and refundings, and provides a monthly statement on all account transactions
The investment manager must decide from among 6 options prior to investing.
A group of investment banks