Flashcards in final exam Deck (44)
Security Markets and their 2 primary functions
financial marketplaces for stocks and bonds and serve two primary functions:
handle the sale of newly issued securities. Proceeds go to the company
handle the trading of securities between investors with the proceeds of the sale going to the seller.
Initial Public Offerings
The first offering of a corporation’s stock. First time a corporation's stock is offered and sold to persons outside of the company. IPOs occur in the primary market!
Specialists who assist in the issue and sales of new securities
Large organizations such as pensions and funds or mutual funds that invest in their own funds or the funds if others
An organization use members can buy and sell (exchange) securities n behalf of companies and individual investors
Over the counter (OTC) market -
provides companies and investors with means to trade stocks not listed on the national securities exchange
The securities and exchange commission
The federal agency responsible for regulating the various stock exchanges. Created in 1934 through the securities and exchange act
Prohibit insider trading
Part of IPO
Saying stock is considered....
Issuing bond is considered...
Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid losses
Buying stock on margin
Borrowing some of the stocks purchase cost from the brokerage firm
Using several different types of investments I spread the risk of investing
An organization that buys stock and bonds and then sells shares in those securities to the public. The fund pools investors' money and then it's stick according to the funds purpose.
Money & Bartering
Money- anything rookie generally accept as payment for goods and services
Battering- the direct trading of a good or service for a good or service
Standards for a useful form if money
Portability , unique , divisibility, stability , and durability
M1 / M2 / M3
The amount of money the federal reserve makes available for people
Why is it important to control the supply of money?
1. To control the price of goods and services
2.prices of goods and services are affected by inflation and deflation
The federal reserve
The federal entity incharge of us monetary policy and controlling the us money supply.
The chairman is in control of the money supply
There are 12 federal reserve banks
Banks help companies conduct business with other countries by 3 services :
1. Letter of credit - a promise by the bank to pay the sellers I be amount if certain conditions are met
2.bankers acceptance- a promise the bank will pay a specific amount at any given time
3.money exchange -allows companies to go to a bank and exchange currencies to use a particular country
Responsible for financing economic development in less developed countries
International Monetary Fund ( IMF)
monitors the monetary policy of member nations to ensure a global system that works best for all nations
Branch of government chosen to oversea the legal system through a system of courts
-The US court system is organized at the federal, state, and local levels
holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market ((average case = $5M))
Strict Product Liability
Liability without regard to fault; a company can be held for defective product even if they dont know of the defect
defines crimes, establishes punishments, and regulates the investigation and prosecution of people accused of committing crimes
proceedings cover non-criminal acts - divorce, marriages, personal injury lawsuits and more.
refers to the rules, statues, codes and regulations that provide a legal framework for the conduct of business. These included product liability, sales, compensation, consumer protection
includes state and federal constitutions, legislative enactments, treaties of the federal government and ordinances; written law
the body of law that comes from decisions handed down by judges/courts, unwritten law.
precedent- decisions judges have made in previous cases to guide their handling of new cases
federal or state institutions and other government organizations with delegated powers to create rules and regulations within their given area of authority.
EX; the federal reserve board
a wrongful act that causes injury ro another person's body, property, or reputation
behavior that causes unintentional harm or injury
a document that gives inventors exclusive rights to their inventions for 20 years
protects a creator's rights to material such as books, articles, photos, painting, and cartoons, lifetime + 70 years
the government withdraws certain laws and regulations that seem to hinder competition.
Active in : Airline industry
business technology in 1970s
Data Processing- Primarily used to improve the flow of financial information
the raw, analyzed and unorganized facts and figures
is processed and organized data that managers can use for decision making
technology in the 200ws
changes the traditional flow of information so that the database goes to the individual rather than the individual going to the database
Types of business information available
business process information
Biological data- fingerprints
Public Data- Public sources
Data that indicates the persons interests
4 characteristics that make information useful
1.quality- accurate & reliable
2.Completeness- enough to make a decision
3. timeliness- gets to manager is time to make critical decisions
4.Relevance-too much data managers must learn which questions to ask to get the correct data