Stock Exchange Flashcards
(95 cards)
exchange synonym
market
def+tr over-the-counter market
decentralised market where participants trade everything directly without a broker
trgovanje preko pulta (izvenborzni trg)
when are dividends paid out? (two reqs)
- profit is made
2. the profit is not reinvested into the company
state types of investors and what their main purpose is
- speculators (buying and selling all the time - depending on volatility)
- protectors (hedging against inflation and low interest rates in banks) - investing in incumbent companies
volatility synonym
value fluctuatiton
hedging synonym
protecting
what are two drawbacks of investing in already established companies
- low returns
2. high prices of shares (entry barriers are high)
def blue chip companies
a stock corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times
def+tr portfolio
_________________
portfelj
state 3 different types of exchanges and what they trade + tr
- stock exchange (securities) = borza vrednostnih papirjev
- commodity exchange (commodities) = blagovna borza
- foreign exchange (currencies) = devizna borza
def+tr bull market
selling when the prices are high
obdobje rasti borznih tečajev
state 3 types of securities and provide tr. what kind of profit do you get?
vrednostni papirji:
- shares = stocks = equity (delnice) - dividends
- bonds (obveznice) - coupons
- derivatives (izvedeni finančni inštrumenti) - ? who knows
def shares
proportional parts of the company
def dividends
a proportion of the annual profit paid to shareholders
paid yearly or quarterly
def dividends
a proportion of the annual profit paid to shareholders
paid yearly or quarterly
def public limited company (PLC)
when a private company (LTDs or LLCs) goes public
def + synonym flotation
when the company’s shares are quoted or listed on the stock exchange
initial public offering (IPO)
def seasoned equity offering (SEO)
when additional shares are sold
when is the best time to buy shares?
soon after IPO or at SEO
define two types of shares +tr
- ordinary (common) shares = shareholders have voting rights (important only if you have the majority share) (navadne)
- preference (preferred) shares = have priority in pay outs of dividends (prednostne)
def bond
a loan to a company, annual coupons (at a coupon=fixed interest rate; % of profit) are paid out, always have maturity date (or due date)
state 3 types of bonds
- municipal (city issues bonds)
- government (government issues bonds)
- corporate (company issues bonds)
what is the two risks involving bonds?
- default risk (cannot return the principal) - bankruptcy in the case of the company (gov usually cannot default)
- interest rate risk
what is safer - shares or bonds?
bonds