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Any vehicle into which funds can be placed with the expectation that it will generate positive income and/or preserve or increase its value |
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the rewards from investing, recieved as current income and/or increased value |
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investments that represent debt or ownership or the legal right to acquire or sell an ownership interest |
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investments in real property or tangible personal property |
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investment in which an investor directly acquires a claim on a security or property |
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investment made in a collection of securities or properties |
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funds lent in exchange for interest income and the promised repayment of the loan at a given future date |
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ongoing ownership in a business or property |
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securities that are structured to exhibit characteristics similar to those of an underlying security or asset and derive their value from the underlying security or asset |
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the chance that actual investment returns will differ from those expected |
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the purchase of high - risk investment vehicles that offer highly uncertain returns and future value |
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investments that typically mature within one year |
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investments with maturities of longer than a year or with no maturity at all |
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debt, equity, and derivative securities of U.S. based companies |
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debt, equity, and derivative, securities of foreign-based companies |
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organization that channel the savings of governments, businesses, and individuals into loans or investments |
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forums in which suppliers and demanders of funds make financial transactions, often through intermediaries |
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savings instruments that usually have lives of 1 year or less |
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the ability of an investment to be converted into cash quickly and with little or no loss in value |
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equity investment that represents ownership in a corporation; each share represents a fractional ownership interest in the firm |
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periodic payments made by firms to their shareholders |
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the amount by which the sale price of an asset exceeds its original purchase price |
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fixed - income securities |
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investment vehicles that offer a fixed periodic |
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long term debt instruments (IOUs), issued by corporations and governments, that offer a known interest return plus return of the bond's face value at maturity |
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a fixed - income obligation with a feature permitting the investor to convert into a specified number of shares of common stock |
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ownership interest in a corporation; has a stated dividend rate, payment of which is given preference over common stock dividends of the same firm. |
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a company that raises money from sale of its shares and invests in and professionally manages a diversified portfolio of securities |
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money market mutual funds |
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mutual funds that invest solely in short-term investment vehicle |
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securities that give the investor an oppurtunity to sell or buy another security at a specified price over a given period of time |
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legally binding obligations stipulating that the seller of the contract will make delivery and the buyer of the contract will take delivery of an asset at some specific date, at a price agreed on at the time the contract is sold. |
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entities such as residential homes, raw land, and income property |
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investments assets, other than real estate, that can be seen or touched |
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the financial objectives that one wishes to achieve by investing |
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a written document describing how funds will be invested and specifying the target date for achieving each investment goal and the amount of tolerable risk |
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collection of securties or other investments, typically constructed to meet one or more investment goals |
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the inclusion of a number of different investment vehicles in a portfolio to increase returns or reduce risk |
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the amount by which the proceeds from the sale of a capital asset are less than its original purchase price |
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the amount by which capital losses exceed capital gains; up to $3000 of net losses can be applied against ordinary income in any year |
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the development of strategies that will defer and minimize an individual's level of taxes over the long run |
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the process of identifying the current state of the economy/market and assessing the likelihood of its continuing on its present course |
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a method of earning interest on a security by purchasing it at a price below its redemption value; the difference is the interest earned. |
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forums that allow suppliers and demanders of securities to make financial transactions; they include both the money market and the capital market |
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market where short - term securities (with maturities less than one year) are bought and sold |
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market in which long - term securitie (with maturities greater than one year) such as stocks and bonds are bought and sold. |
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the market in which new issues of securities are sold to the public |
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initial public offering (IPO) |
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the first public sale of a company's stock |
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Securities and Exchange Commission (SEC) |
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federal agency that regulates securities offerings and markets |
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the sale of firm's securities to the general public |
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an offer of new shares of stock to existing stockholders on a pro rata basis |
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the sale of new securities directly, with SEC registration, to selected groups of investors |
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a portion of a security registration statement that describes the key aspects of the issue, the issuer, and its management and financial position |
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a preliminary prospectus made available to prospective investors during the waiting period between the registration statement's filing with the SEC and its approval |
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financial intermediary that specializes in selling new security in selling new security issues and advising firms with regard to major financial transactions |
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the role of the investment banker in bearing the risk of reselling, at a profit, the securities purchased from an issuing corporation at an agreed-on price |
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a group formed by an investment banker to share the financial risk associated with underwriting new securities |
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a large number of brokerage firms that join the originating investments banker(s); each accepts responsibility for selling a certain portion of a new security issue |
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over-the-counter (OTC) market |
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a segment of the secondary market that involves trading in smaller, unlisted securities |
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the securities exchanges on which the two sides of a transaction, the buyer and seller, are brought together to trade securities |
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the market in which the buyer and seller are not brought together directly but instead have theirs orders executed by dealers that make markets in the given security. |
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securities dealers that "make markets" by offering to buy or sell certain securities at stated prices |
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stock exchange member who specializes in making transactions in one or more stocks and manages the auction process |
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listing of a firm's shares on more than one exchange |
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the highest price offered to purchase |
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the lowest price at which a security is offered for sale |
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the public sales of large blocks of previously issued securities held by large investors |
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over-the-counter transactions typically handled by market makers and made in securities listed on the NYSE, the AMEX, or one of the other exchanges |
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transactions made directly between large institutional buyers and sellers of securities |
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the inclusion of a number of different investment vehicle in a portfolio to increase returns or reduce risk |
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dollar - denominated debt securities issued by foreign government or corporations and traded in U.S. securities markets |
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after-hours trading in stocks that involves filing buy and sell orders by matching identical sell and buy orders at the desired price |
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a transaction in which investors buy securities in the hope that they will increase in value and can be sold at a later date for profit |
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the use of borrowed fund to purchase securities; magnifies returns by reducing the amount of equity that the investor must put up |
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th minimum amount of equity that must be a margin investor's own funds; set by the Federal Reserve Board |
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the use of debt financing to magnify investment returns |
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vehicle through which borrowed funds are made available, at a stated interest rate, in a margin transaction |
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the lowest interest rate charged the best business borrowers |
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a brokerage account for which margin trading is authorized |
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the minimum amount of equity that must be provided by a margin investor at the time of purchase |
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a margin account whose equity is less than the initial margin requirement; that investor may no make further margin purchases and must bring the margin back to the initial level when securities are sold |
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the absolutely minimum amount of margin (equity) that an investor must maintain in the margin account at all times |
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notification of the need to bring the equity is below the maintenance level up above the maintenance margin level or to have enough margined holdings sold to reach this standard |
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the amount of money being borrowed in a margin loan |
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the technique of using paper profits in margin accounts to partly or fully finance the acquisitions of additional securities |
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more equity than is required in a margin account |
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