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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 ___.
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 ___.
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 ___.
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 ___.
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 ___.
There are groups such as employees, customers, suppliers
There are groups such as employees, customers, suppliers
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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