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Questions and Answers
A person, company, or institution who owns at least one company stock is referred to as a ___.
A person, company, or institution who owns at least one company stock is referred to as a ___.
stockholder
The method of calculating theoretical values of companies and their stocks is known as ___.
The method of calculating theoretical values of companies and their stocks is known as ___.
stock valuation
The US treasury bills are issued by the ___.
The US treasury bills are issued by the ___.
Federal Government
A market for investors that trades highly liquid securities with maturities of one year or less is known as the ___.
A market for investors that trades highly liquid securities with maturities of one year or less is known as the ___.
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A long-term debt instrument used by businesses and government to raise large sums of money is called a ___.
A long-term debt instrument used by businesses and government to raise large sums of money is called a ___.
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Part of the profit of a company that is distributed to the stockholders is known as ___.
Part of the profit of a company that is distributed to the stockholders is known as ___.
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The type of stock that has no fixed dividend rate but includes voting power is known as ___.
The type of stock that has no fixed dividend rate but includes voting power is known as ___.
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Bondholders have prior claims against the remaining assets of the corporation in case of ___.
Bondholders have prior claims against the remaining assets of the corporation in case of ___.
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There are groups such as employees, customers, suppliers
There are groups such as employees, customers, suppliers
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Bond represent ___ of the borrowing corporation
Bond represent ___ of the borrowing corporation
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Study Notes
Stockholders and Stakeholders
- Stockholder: An individual, company, or institution owning at least one share of company stock.
- Stakeholder: Individuals, companies, or institutions that have an interest in a company. This includes employees, customers, and suppliers.
Stock Valuation
- Stock Valuation: This is a method used to calculate the theoretical value of companies and their stocks.
Bond
- Bond: Represents the indebtedness of the borrowing corporation.
The Role of the Government and Financial Institutions
- US Treasury Bills: Issued by the Federal Government.
- Negotiable Certificates of Deposit: Issued by financial institutions.
Money Market
- Money Market: A market where investors trade highly liquid securities with maturities of one year or less.
- Money Market Associations of the Philippines: Have a total membership of 60 financial institutions.
- PNB Front Peso or Dollar Money Market Fund: An example of a money market fund.
- Money Market Fund: A short-term investment that offers higher liquidity than certificate deposits.
- Treasury Bills in the Philippines: Treasury bills are a money market instrument issued by the government.
Financial Market Instruments
- Primary Market: The market for initially issued securities.
- Secondary Market: The market where pre-owned securities are traded.
Capital Market
- Capital Market: The forum where savers and borrowers interact on a long-term basis.
Bonds
- Bond: A long-term debt instrument used by businesses and governments to raise large sums of money.
- Bond Maturity: Bonds have a specific maturity date when the principal amount is repaid.
- Bond Interest: Bonds earn interest regardless of whether the corporation earns a profit.
- Bondholder Rights: Bondholders have no voting power in company management but have priority claim to remaining assets in the event of dissolution.
Stock
- Dividend: Part of a company's profit distributed to stockholders on record.
- Preferred Stock: Type of stock with a fixed dividend rate.
- Common Stock: Type of stock with no fixed dividend rate but possesses voting power.
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Description
Test your knowledge on key finance concepts like stockholders, stakeholders, stock valuation, bonds, and the money market. This quiz covers essential financial terms and their roles in the economy, including government and financial institutions. Dive in to understand the intricate world of finance and investment!
