Financing Choices
is a agreement that allows a company to obtain additional loans without a new loan application.
What is line of credit?
a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified maturity date (due date).
What is bond?
is an equity security representing ownership in a corporation with voting rights
What is Common Stock?
is a licensed specialist in the buying and selling of stocks and bonds
What is stockbroker?
is as measure of the quality and safety of a company's debt.
What is bond rating?
Another common type of loan which is a signed written promise to borrow money between a borrower and a lender.
What is a promissory note?
a type of corporate bond
What is mortgage bond?
a share of the profits that shareholders receive
What is dividends?
provides information about securities you may want to buy
What is full-service broker?
short-term borrowing, with maturities from 91 days to one year
What is T-Bills or Treasury Bills?
refers to unsecured, short-term debt instruments issued by corporations.
What is commercial paper?
A corporate bond without collateral
What is debenture?
the second main class of stock issued by corporations.
What is Preferred Stock?
businesses where securities are bought and sold
What are stock exchanges?
have maturities from one to ten years
What are T-notes are Treasury Notes?
is a legal agreement to use property that belongs to another person.
What is leasing?
is an individual or company that assists companies with issuing new securities
What is investment banker?
is the location where securities are traded after they are initially offered in the primary market.
What is Secondary Market?
involves selling a stock not actually owned when a lower price is expected
What is selling short?
long-term borrowing, with maturities ranging from 10 to 30 years.
What are T-Bonds or Treasury Bonds?
name two deciding factors on whether to buy or lease
What is: Are funds available, What is the length of the useful life of the asset, How would the company's taxes be affected, and What is the expected value of the asset after its useful life?
is the stated annual interest rate for a bond
What is coupon rate?
Another name for this is "going public"
What is Initial Public Offering (IPO)?
an investment fund set up and managed by companies that receive money from many investors.
What is mutual fund?
can be exchanged for common stock in the same company
What is a Convertible Bond?