Major Areas of Finance
Debt Instruments
Long-term fixed income securities
Derivative securities
Types of stock orders
100
Where we get cash or capital.
What are markets and institutions?
100
Best known money market instrument in the world
What are treasury bills?
100
Interest bearing securities
What are bonds?
100
Right to buy or sell at a fixed price for a fixed period of time
What are stock options?
100
Broker will obtain best possible price at that time
What is a Market order?
200
How we use capital to obtain revenue producing assets
What are investments?
200
Corporate equivalent of the T-Bill, matures within 9 months.
What is Commercial Paper?
200
referred to as the coupon rate
What is the Interest rate?
200
option to buy at a noted price
What is a call option?
200
Establishes buy/sell limits
What is a limit order?
300
Managing capital for the company or its stakeholders, or Helping people/companies determine how to invest money
What are Services
300
One party sells the instrument and agrees to repurchase it later at a higher price
What is a repurchase agreement?
300
Denominated in USD but sold outside the US
What are Foreign Bonds?
300
option to sell at a noted price
What is a put option?
300
Sell order that becomes effective at a certain price
What is a Stop-loss order?
400
Forecasting, allocating and controlling capital for internal use
What is Managerial accounting?
400
Discounted instruments that are used to finance goods that haven't been shipped yet
What are Banker's Acceptances?
400
Proceeds used for municipal projects, like expanding I-49, or renovating city hall
What are Municipal Bonds?
400
Contract between parties for future delivery of a commodity at an agreed price
What is a futures contract?
400
Watching and noting trends, then buying/selling shares on a momentary basis all day
What is a day trade?
500
the identification, measurement, and communication of financial information about an economic entity to interested parties
What is Financial Accounting?
500
State and local govts sell these as anticipation notes – they anticipate revenue from another source soon
What are Short Term Municipal Securities?
500
Owning a share of a pool of mortgages
What are Mortgage Pass-Through Securities
500
Regular bond or preferred stock (which works like a bond) issue with an option to exchange the security for a fixed # of shares of common stock
What is a convertible security
500
Selling shares intending to buy them back later at a lower price – making money off a security's value falling
What is a short?
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