Mr. EM
institutions such as banks, credit unions, life insurance companies, pension funds, and financial companies
Financial Intermediaries
is a formal long-term contract that requires repayment of borrowed money and interest on the borrowed funds at regular intervals over time.
Bond
Shows the dividend as a percentage of the stock price.
Yield (Yld%)
Investors refer to the _______________________ when they mean a market in which money is loaned for a period of less than one year.
Money Market
A non-government bond that’s usually set up by wealthy people earning a great interest rate. However, it comes with risks. It’s an I.O.U.
Corporate Bonds
claims on the property and the income of the borrower
Financial Assets
refers to the life of a bond. If the bond has a 30-year maturity, then the issuer of the bond has 30 years to repay the lender.
The most recent closing price compared to the previous closing price.
NET CHG
If a financial asset can be sold to someone other than the original issuer, it then becomes part of the _____________________ .
Secondary Market
A certificate that needs time to stay there, and is a proof of financial assets. “A steak deep inside a freezer”
Certificate of Deposit
A network of savers, investors, financial institutions, and financial assets that work together to transfer savings from savers to investors.
Financial System
the annual interest divided by the purchase price.
The practice of holding a large number of different stocks so that increases in some stocks can offset declines in others is a popular strategy.
Portfolio diversification
One market for financial assets is the ____________________ , a market where the original issuer can sell or repurchase a financial asset.
Primary Market
A long term government bond lasting up to 2-10 years.
Treasury Notes
A nonprofit service cooperative that accepts deposits, makes loans, issues CDs, and offers checking accounts.
Credit Union
the amount borrowed and consequently the amount that must be paid back to the lender by the time the bond reaches its maturity.
Par Value
The length of time you need to work at the company before you can take the employer’s matching contribution with you.
Vesting
Investors speak of the _______________________ when they mean a market in which they are loaned for more than one year.
Capital Market
Short term bills promise to return when “matures” instead of by interests.
Treasury Bills
Regular payments by firms to workers who become eligible for retirement or disability benefits.
Pension
follows the basic risk-return idea, which says that investors expect higher returns to _____________ higher levels of risk
offset
Compares the stock price to company earnings and helps measure value.
P/E ratio (PE)
Non-Transferrable Bond, sold at face value. Usually used to avoid inheritance tax.
Government Savings Bond
A loan to your home town that is tax-free
Municipal Bonds