Quotes
"Boos don't block dunks."
Kobe Bryant
Ownership shares of an organization.
Common Stock
Periodic payments made to shareholders of a company, as a way of distributing profits to the shareholders.
Dividends
The process of liquidation or reorganization of an insolvent firm.
Bankruptcy
A sum of money borrowed from a financial intermediary, such as a bank or insurance company, that must be paid back over a specific period of time and with interest, the fee for borrowing the money.
Loan
"It doesn't matter what your background is and where you come from, if you have dreams and goals, that's all that matters."
Serena Williams
Junk Bond
The percentage rate of return that a bond would provide if held until its maturity date, often used to denote the annualized return from owning a specific bond.
Yield to Maturity (YTM)
A government's forgoing of collection of taxes.
Tax Abatement
The ______ of shares of a company to the public in order to generate cash for the business, when no shares had previously been available.
Initial Public Offering
"I think that the good and the great are only separated by the willingness to sacrifice."
Kareem Abdul-Jabbar
Cash flow created through the implementation of a new project.
Incremental Cash Flow
The sale of an organization's assets piece by piece, effectively removing the firm from existence.
Liquidation
The difference between a long-term interest rate and a short-term interest rate.
Liquidity Spread
An elected group whose job is to select the executives and top-level management for the company.
Board of Directors
"Coaches who let a championship team back off from becoming a dynasty are cowards."
Pat Riley
A promise to pay back borrowed money plus interest to the investor who has purchased the bond; a financial mechanism for raising capital by using debt as opposed to equity
Bond
The rate that a bond issuer pays for the use of money; equivalent to an interest rate.
Coupon Rate
The increase in a stock's price since purchase.
Capital Gain
A ____ that offers some of the features of both equity and debt. The investor has the option to convert the ____ into a fixed number of shares of stock in the company, at a stock price agreed upon at the issuance of the _____.
Convertible Bond
"When you're in the day-to-day grind, it just seems like it's another step along the way. But I find joy in the actual process, the journey, the work. It's not the end. It's not the end event."
Cal Ripken Jr.
For a bond, the amount earned annually from an interest payment compared with the price, expressed as a percentage return.
Current Yield
The reason a company needs capital and the possibility that the money can be turned into more money or benefits.
Production Opportunities
The risk that a borrower will not pay back the principal of a debt plus interest.
Default Risk
The only word in the English language with 3 sets of double letters in a row.
Bookkeeping