PPL 2010 Study Guide - Midterm Guide: Efficient-Market Hypothesis, Federal Deposit Insurance Corporation, Reserve Requirement

25 views5 pages

Document Summary

Comm 180 exam 2 study guide part 2. Topic: sessions 13 & 14 understanding the acquisition of financial capital. Reference materials: text chapter 19, class lecture, and session powerpoint slides (via. Types of debt and equity financing, and related terms (see above) The issues, and terms used, in investing in stocks and bonds. Ipo (initial public offering)- the first public offering of a corporation"s stock. Investment bankers: specialists who assist in the issue and sale of new securities. Institutional investors: large organizations- such as pension funds, mutual funds, insurance companies, and banks- that invest their own funds or the funds of others. Bond: a corporate certificate indicating that a person has lent money to a firm. Interest: the payment the issuer of the bond makes to the bondholders for the use of borrowed money. Maturity date: the exact date the issuer of a bond must pay the principal to the bondholder.