STOCKS AND BONDS Flashcards
Q2 (25 cards)
are shares in the ownership of the company
STOCKS
A person owns a share or
stocks
STOCKS HOLDER
TYPES OF STOCKS
COMMON STOCK AND PREFERRED STOCK
have voting rights
COMMON STOCKHOLDERS
DONT have voting rights
PREFERRED STOCKHOLDERS
amount of stockholders’ share of the company’s earning or profit.
DIVIDEND
ratio of the dividend to the number of shares
(DPS) DIVIDEND PER SHARE
per share amount, remains stable over time
PAR VALUE
an orderly trading place for stock wherein prices or market
value vary from day to day and within a day
STOCK MARKET
Stocks can be bought or sold at its current price
MARKET VALUE
Who specialize to work in
the stock market can trade
on the floor.
STOCKBROKERS
The broker receives a __________ for the services of both buying and selling stocks.
COMMISSION
Ratio of the annual dividend per share and the market value per share. Also called
current stock yield
(SYR) STOCK YIELD RATIO
long-term investment, purchaser becomes a creditor, Loans provided, Debt instrument
BONDS
A person who invests on bonds
BOND HOLDER
The company, state or municipality that issues the bond
ISSUER
annual payout, rate for coupon period
COUPON RATE
annual interest paid by the issuer to the lender, usually semi-annually
COUPON
The price of the bond at purchase time
PRICE OF THE BOND
The amount payable on the
maturity date;
FACE VALUE OR PAR VALUE
Fixed period of time (in years)
TERM OF A BOND
Present value of all cash inflows to the bondholder
FAIR PRICE OF A BOND
the bond is purchased at par
P=F
the bond is purchased at a
discount
P<F
