Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SD: Finance, Accounting, Entrepre > Financial Terms > Flashcards

Financial Terms Flashcards

1
Q

Market Capitalization

A

Market-Value of shares: how much would it cost to purchase all shares of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Market-Value of shares: how much would it cost to purchase all shares of a company

A

Market Capitalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Significance of Market Capitalization

A

higher price earning ratio => higher expectation of earnings growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

higher price earning ratio => higher expectation of earnings growth

A

Significance of Market Capitalization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Beta significance

A

measures the market-wide risk that cannot be eliminated through diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

measures the market-wide risk that cannot be eliminated through diversification

A

Beta significance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Beta = 0

A

value not related to the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

value not related to the market

A

Beta = 0

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Beta = 1

A

value fluctuates with the market directly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

value fluctuates with the market directly

A

Beta = 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Beta > 1

A

value is very sensitive to the market changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

value is very sensitive to the market changes

A

Beta > 1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Insight of CAPM

A

1.) Investments return at least risk-free rate2.) Equity Invest should have higher rate of return3.) Beta represent risk that cannot be diversified away

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

1.) Investments return at least risk-free rate2.) Equity Invest should have higher rate of return3.) Beta represent risk that cannot be diversified away

A

Insight of CAPM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Risk-Diversification

A

spreading out investments to overall reduce risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

spreading out investments to overall reduce risk

A

Risk-Diversification

17
Q

Capital Budgeting

A

Making long-term financial decisions

18
Q

Making long-term financial decisions

A

Capital Budgeting

19
Q

Capital

A

Financing obtained by a business in order to buy assets it needs

20
Q

Financing obtained by a business in order to buy assets it needs

A

Capital

21
Q

Budgeting

A

Numerical Financial Planning

22
Q

Numerical Financial Planning

A

Budgeting

23
Q

Hedge Fund

A

Sophisticated mathematical models with rapid trading strategy, usually investors with a lot of money invest in it

24
Q

Sophisticated mathematical models with rapid trading strategy, usually investors with a lot of money invest in it

A

Hedge Fund

25
Q

Private Equity Fund

A

Investments in company not publicly traded, usually for large investments and hard to get in or out of

26
Q

Investments in company not publicly traded, usually for large investments and hard to get in or out of

A

Private Equity Fund

27
Q

Managed Fund

A

Analyst’s research and strategy with higher management fee

28
Q

Analyst’s research and strategy with higher management fee

A

Managed Fund

29
Q

Index Fund

A

Using simple mathematical rules with low management fees usually for long term investments

30
Q

Using simple mathematical rules with low management fees usually for long term investments

A

Index Fund

SD: Finance, Accounting, Entrepre (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions