Investing
What does ETF stand for?
Exchange Traded Funds
What is the amount bondholders receive periodically?
Coupon Payments
Name 2 of the top 5 market cap companies in the US
Apple, Nvidia, Microsoft, Amazon, Google
Chairman of the Fed today
Jay Powell
Average cost of a company’s debt and equity financing.
Weighted Average Cost of Capital
This process occurs when a private company sells shares to the public for the first time.
Initial Public Offering
Company-sponsored investment plan, which allows employees to contribute money pre-tax, and can only withdraw when reaching age 59 1/2
401K
What happens to the price of bonds when interest rates increase?
Decline
US Stock Market Index that contains primarily tech companies
NASDAQ
Rate that the Fed charges member banks for borrowing
Discount Rate
What does FP&A stand for?
Financial Planning and Analysis
This action increases the number of shares outstanding while reducing the price per share proportionally.
Stock Split
This stock market index, heavily weighted toward large technology companies, is often used as a proxy for U.S. growth stocks.
This term describes the yield difference between corporate bonds and U.S. Treasury securities of similar maturity.
Credit Spread
Using non-public information for personal benefit is called
Insider Trading
Name the 2 mandates of the Fed
Maximum employment and 2% inflation
Name the 3 primary Financial Statements
Balance Sheet, Cash Flow, Income Statement
This benefit of debt financing arises from interest tax deductibility.
Tax Shield
The tax investor pays on investment gains is called what?
Capital Gains Tax
Name a bond rating agency
Moody's, S&P, Fitch
Government organization that policies and monitors US stock markets
Securities and Exchange Commission
Length of term for Fed Board of Governor
14 years
This type of risk affects the entire market and cannot be diversified away
Systematic
This valuation multiple compares a company’s equity value to its net income
Price/Earning Ratio
Name the 3 types of Bonds
Corporate, Municipal, Government
What is the largest market cap company in the US?
NVIDIA
This Federal Reserve committee sets U.S. monetary policy, including interest rate targets.
Federal Open Market Committee
In purchase accounting, this residual asset is recorded when the acquisition price exceeds the fair value of identifiable net assets.
Goodwill
This method estimates intrinsic value by discounting expected future cash flows
Discounted Cash Flow
This CAPM input measures a stock’s sensitivity to systematic market risk rather than total risk.
Beta
This term describes the sensitivity of a bond’s price to changes in interest rates.
Duration
Investment strategy where investor borrows a security and sells it immediately, with the intention of buying it back later at a lower price
Short Selling
This interest rate is directly targeted by the Federal Reserve to influence short-term borrowing costs.
Fed Funds Rate
Ability to convert an investment into cash in a short period of time
Liquidity
What was the Italian currency prior to the Euro?
Lira