問題一覧
1
written evidence of ownership, interest, a participation, in an enterprise, or written evidence of indebtedness of a person or enterprise.
Securities
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Primary three types of securities
Equity, Debt, Hybrid
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provides ownership rights to holders.provides ownership rights to holders.
Equity
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essentially loans repaid with periodic payments.
Debt
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which combine aspects of debt and equity.
Hybrid
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refers to the trading of short- term securities.
Money Market
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refers to the trading of long-term securities.
Capital Market
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The issuing entity, not yet public.
Primary Market
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A party other than the issuing entity.
Secondary Market
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A money-market security issued by large corporations of unquestionable credit standing and reputation to meet short-term debt obligation or working capital requirements.
Commercial Paper
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Long-term debt instrument that carries certain obligations on the part of the issuer where bondholders lend money to the issuer.
Bonds
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Comes from periodic interest payments paid over the life of the issue.
Current Income
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Gains from the sale of bond (prior to the maturity when the market price is greater than the bond’s interest rate.
Capital Gain
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AS TO THE ISSUING PARTY
Government Bonds, Commercial Bonds
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secured by lien on real properly
Mortgage Bonds
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Secured by equipment of the company
Equipment Trust Bonds
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Secured by securities invested in by the issuing company.
Collateral Bonds
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Unsecured by a collateral
Debenture Bonds
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The principal will be paid at the maturity date
Straight Bonds
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Will be paid through installment
Serial Bonds
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Bonds that can be converted into common stocks. It enables lenders to become an owner of common stock.
Convertible Bonds
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Bonds that can be redeemed or retired before their maturity date
Callable Bonds
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Bonds that are not subject to redemption before maturity date
Non Callable Bonds
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They can be transferred to other parties by mere delivery because they are not registered in the books of the issuing entity.
Bearer Bonds
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Only the interest can be transfer
Coupon Bonds
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They are registered in the books of the issuing entity.
Registered Bonds
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risk depends the return of interest (low or high)
Interest Risk
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The inflation is higher than bond interest.
Purchasing Power Risk
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credit or default risk
Business/Financial Risk
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Cannot be liquidated incase of emergency
Liquidity Risk
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Expected pero na stop kasi na-call.
Call Risk
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BOND INVESTMENT STRATEGIES
Active Strategies, Passive Strategies
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seeks attractive capital gains when interest are expected to decline
Forecasted Interest Rates
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Liquidation of one bond to purchase another bonds.
Bond Swaps
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when you buy a bond and hold if to maturity.
Buy and Hold
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portfolio of individual that matures on different dates.
Bond Ladder
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Short term government securities They are offered in three terms namely, 91,182, and 364 days to banks and eligible dealers in turn offer them to the public.
Treasury Bills
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Fixed rate government debt securities with a maturity range between 10 and 30 years.
Treasury Bonds