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Flashcards in EXAM 1 Deck (125)
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1

3 AREAS OF FINANCE

1. CORPORATE FINANCE 2. INVESTMENTS 3. BANKING/FINANCIAL INSTITUTION

2

CAPITAL BUDGETING DEFINITION

LONG-TERM INVESTMENT PLANNING

3

CAPITAL BUDGET ANALYSIS DEFINITION

DECIDING WHAT ASSETS TO BUY

4

ASSET PRICING DEFINITION

VALUING ASSETS

5

CURRENT MARKET VALUE DEFINITION

WHAT A BUYER WILL CURRENTLY PAY FOR AN ASSET

6

3 INSTITUTIONS

1. BANKS 2. INSURANCE COMPANIES 3. PENSION FUNDS

7

3 OLD NAMES FOR CORPORATE FINANCE

1. MANAGERIAL FINANCE 2. FINANCIAL MANAGEMENT 3. BUSINESS FINANCE

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3 WAYS ASSET MANAGERS INVEST

1. VENTURE CAPITAL 2. MUTUAL FUNDS 3. REAL ESTATE

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9 CAREERS IN FINANCE

1. COMMERCIAL BANKING 2. CORPORATE FINANCE 3. FINANCIAL PLANNING 4. HEDGE FUNDS 5. INSURANCE 6. INVESTMENT BANKING 7. MONEY (ASSET) MANAGEMENT 8. PRIVATE EQUITY 9. REAL ESTATE

10

CASH MANAGEMENT DEFINITION

DAY TO DAY FINANCE OPS

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6 INVESTMENT BANKING ROLES

1. COMPANY & INDUSTRY ANALYSIS 2. MERGERS & ACQUISITIONS 3. RAISING CAPITAL VIA CORPORATE OFFERINGS 4. SALES & TRADING 5. PRIVATE CLIENT SERVICES 6. BACK OFFICE SUPPORT

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HARVEST DEFINITION

CASH/STOCK FROM SALES/IPO

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BUYOUT DEFINITION

PURCHASE OF MAJORITY SHARES

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4 CORPORATE FINANCE ROLES

1. CASH MANAGEMENT 2. TAX STRATEGIES 3. FINANCIAL POLICY IMPLEMENTATION 4. INVESTING & FINANCING

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5 FUNCTIONAL AREAS OF BUSINESS

1. MARKETING 2. OPERATIONS 3. ACCOUNTING 4. HUMAN RESOURCES 5. STRATEGIC MANAGEMENT

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3 TYPES OF SECURITIES

1. TREASURY SECURITIES 2. CORPORATE BONDS 3. STOCKS

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SECURITIES DEFINITION

STOCKS/BONDS

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SYNDICATE DEFINITION

OVERSEES ISSUANCE OF STOCKS/BONDS

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2 WAYS SYNDICATES ISSUE BONDS

1. COMPETITIVE SALE 2. NEGOTIATED SALE

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2 THINGS COMPOSING SYNDICATES

1. INVESTMENT BANKS 2. OTHER INSTITUTIONAL INVESTORS

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2 SECONDARY MARKETS

1. AUCTION MARKET 2. DEALER MARKET

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AUCTION MARKET DEFINITION

PHYSICAL, DETERMINED BY INVESTORS WILLINGNESS TO PAY

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DEALER MARKET DEFINITION

MULTIPLE DEALERS, QUOTE PRICES FROM AN INVENTORY

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SPECIALIST DEFINITION

PROVIDES LIQUIDITY IN SECONDARY FINANCIAL MARKETS

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THE SPECIALIST CHARGES WHAT TO WHOM?

HIGHER = SELLERS LOWER = BUYER

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DIFFERENCE BETWEEN BID & ASK OF STOCK

BID-ASK PRICE

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2 TYPES OF TRADE ORDERS IN FINANCIAL MARKETS

1. MARKET ORDERS 2. LIMIT ORDERS

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MARKET ORDERS DEFINITION

USED BY INVESTORS, FIRST COME FIRST SERVED

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LIMIT ORDERS DEFINITION

USED BY INVESTORS, ONLY IF MARKET PRICE REACHES "LIMIT" PRICE

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MARKET ORDERS TO SELL STOCK EXECUTE AT THE CURRENT ___ PRICE

BID