Test 1 Flashcards
Financial services corporations
in the lending or financing business, but they are not commercial banks.
Credit unions
Association with members that have a common bond with often favorable lending and investing terms.
Pension funds
Retirement plans funded by corporations or government agencies for their workers.
Life insurance companies:
These firms collect premiums and pay out claims. Premiums are regularly payments to the firm because the firm is providing down-side loss protection.
Mutual funds
A pool of funds that are managed my a manager according to a clearly stated investment goal. These have risk and trading restrictions and can only be invested by a broker
Exchange traded funds
A pool of money that are traded on an exchange and often mimic an index of stocks, but at a lower price
Hedge funds
Pool of money for high net-worth investors. Less strategy restrictions than mutual fund and more risks. High management fees
Private equity companies
financial intermediary that invests in equities that are not traded on the public capital markets.
Investment Banks
specialized financial intermediaries that help companies and governments raise money and provide advisory services to client firms when they enter into major transactions such as mergers
Commercial banks
collect the savings of individuals as well as businesses and then lend those pooled savings to other individuals and businesses. They earn money by charging a rate of interest to borrowers that exceeds the rate they pay to savers
Venture capital (VC) firms
financing for private start-up companies when they are first founded
Leverage Buyout firms
Financing of established firms that typically have not been perfoming well
Money market
funds are borrowed or loaned for short periods of time usually less than 1 year
Capital Market
for stocks and intermediate or long term debt, usually one year or longer
Public Markets
Standardized contracts are traded on an organized exchange
