Flashcards
Chapter 21
Cards in this deck (21)
- 1Bond YieldTotal annual interest divided by total cost.
- 2BondsWritten promise by a company that borrows money usually with fixed-interest payment until maturity (repayment time).
- 3Cash DividendCash distribution of company's profit to owners stock.
- 4Common StocksUnits of ownership called shares. Has voting rights.
- 5Cumulative Preferred StockHolders of preferred stock must receive current year's dividends and any dividends in arrears before any dividends are paid out to the holders of common stock.
- 6DiscountAmount bond sells below $1,000
- 7DividendsDistribution of company's profit in cash or stock to owners of stock.
- 8Dividends in arrearsDividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders.
- 9Earnings per share (EPS)Annual Earnings / Total # of shares outstanding
- 10Mutual FundInvestors by shares in the fund's portfolio (group of stocks and/or bonds).
- 11Nest Asset Value (NAV)The dollar value of one mutual fund share; calculated by suntracting current liabilities from current market value of fund's investments and dividing this by the number of shares outstanding.
- 12Odd LotLess than 100 shares.
- 13Price Earnings Ratio (PE Ratio)Closing price per share of stock divided by earnings per share.
- 14Preferred StockType of stock that has a preference regarding a corporation's profits and assets. Has no voting rights.
- 15PremiumPeriodic payments that one makes for various kinds of insurance protection.
- 16Round LotMultiple of 100 shares.
- 17Stock CertificateEvidence of ownership in corporation.
- 18Stock YieldDividend per share divided by the closing price per share.
- 19StockbrokersPeople who with their representatives do the trading on the floor of the stock exchange.
- 20StockholdersOne who owns stock in a company.
- 21StocksOwnership shares in the company sold to buyers, who receive stock certificates.