COMMERCE 1E03 Lecture Notes - Lecture 19: Convertible Bond, Commercial Paper, Common Stock
19 May 2016
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Document Summary
Bond: a contract of indebtedness issued by a corporation or government unit that promises payment of a principal amount at a specified future time plus annual or semi-annual interest at a specified or variable rate. Buying on margin: purchasing securities by borrowing some of the cost from the broker. Capital budget: the spending plan for the acquisition of capital assets that involve large sums of money. Cash budget: the projected use of cash during a given period (e. g. , monthly, quarterly, or annually). Cash-flow forecast: a projection of expected cash inflows and outflows in the coming year. Commercial paper: a short-term corporate equivalent of an iou that is sold in the marketplace by a firm. Common stock: represents ownership of a firm and the rights to vote and to receive all of the firm"s profits (after preferred shareholders are paid), in the form of dividends declared by the board of directors.
