obligation to repay money
debt
If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, $150,000 represents the _____.
principal
If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, 20 years represents the _____.
term
If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, 10% represents the _____.
interest
Based on amortization schedules, _____ interest from each monthly payment is paid at the beginning of the loan.
more
Defaulting on a loan can cause _____.
higher interest rates on future loans and disapprovals on future loans
contractual debt instruments with secured interest payments and a promise to repay the principal within a specific period of time
bonds
the principal or face-value of a bond
par value
The bond rating with the most risk is _____.
Poor/Junk
The bond rating with the least risk is _____.
Excellent
If a corporate bond sells at $500 par value, with a 10% annual coupon rate and a 20-year maturity, what is the bond’s principal?
$500
The bonds sold on the primary market are the company’s _____ issuance.
first
The first issuance of bonds are sold on the _____ market.
primary
Bonds sold among investors are sold on the ____.
secondary market
Secondary bond market sales are among _____.
investors
a share or percentage owned in a corporation
stock
Common stockholders have _____.
voting privileges
Preferred stockholders have _____.
guaranteed dividend privileges
selling stock to raise capital
equity financing
the process of private corporations issuing stock for the first time
initial public offering
The stable dividend policy provides a _____.
fixed, regular dividend each period
The constant dividend policy provides a _____.
dividend solely based on earnings
Which stock exchange offers the largest selection of publicly traded stock?
NYSE
Which stock exchange offers lower fees to list stock and experience in online trading?
NASDAQ
The buying and selling of stock is also called _____.
trading