front 1 obligation to repay money | back 1 debt |
front 2 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 _____. | back 2 principal |
front 3 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 _____. | back 3 term |
front 4 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 _____. | back 4 interest |
front 5 Based on amortization schedules, _____ interest from each monthly payment is paid at the beginning of the loan. | back 5 more |
front 6 Defaulting on a loan can cause _____. | back 6 higher interest rates on future loans and disapprovals on future loans |
front 7 contractual debt instruments with secured interest payments and a promise to repay the principal within a specific period of time | back 7 bonds |
front 8 the principal or face-value of a bond | back 8 par value |
front 9 The bond rating with the most risk is _____. | back 9 Poor/Junk |
front 10 The bond rating with the least risk is _____. | back 10 Excellent |
front 11 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? | back 11 $500 |
front 12 The bonds sold on the primary market are the company’s _____ issuance. | back 12 first |
front 13 The first issuance of bonds are sold on the _____ market. | back 13 primary |
front 14 Bonds sold among investors are sold on the ____. | back 14 secondary market |
front 15 Secondary bond market sales are among _____. | back 15 investors |
front 16 a share or percentage owned in a corporation | back 16 stock |
front 17 Common stockholders have _____. | back 17 voting privileges |
front 18 Preferred stockholders have _____. | back 18 guaranteed dividend privileges |
front 19 selling stock to raise capital | back 19 equity financing |
front 20 the process of private corporations issuing stock for the first time | back 20 initial public offering |
front 21 The stable dividend policy provides a _____. | back 21 fixed, regular dividend each period |
front 22 The constant dividend policy provides a _____. | back 22 dividend solely based on earnings |
front 23 Which stock exchange offers the largest selection of publicly traded stock? | back 23 NYSE |
front 24 Which stock exchange offers lower fees to list stock and experience in online trading? | back 24 NASDAQ |
front 25 The buying and selling of stock is also called _____. | back 25 trading |