Week2 finals

38問 • 1年前

問題一覧

written evidence of ownership, interest, a participation, in an enterprise, or written evidence of indebtedness of a person or enterprise.

Securities

Primary three types of securities

Equity, Debt, Hybrid

provides ownership rights to holders.provides ownership rights to holders.

Equity

essentially loans repaid with periodic payments.

Debt

which combine aspects of debt and equity.

Hybrid

refers to the trading of short- term securities.

Money Market

refers to the trading of long-term securities.

Capital Market

The issuing entity, not yet public.

Primary Market

A party other than the issuing entity.

Secondary Market

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

Long-term debt instrument that carries certain obligations on the part of the issuer where bondholders lend money to the issuer.

Bonds

Comes from periodic interest payments paid over the life of the issue.

Current Income

Gains from the sale of bond (prior to the maturity when the market price is greater than the bond’s interest rate.

Capital Gain

AS TO THE ISSUING PARTY

Government Bonds, Commercial Bonds

secured by lien on real properly

Mortgage Bonds

Secured by equipment of the company

Equipment Trust Bonds

Secured by securities invested in by the issuing company.

Collateral Bonds

Unsecured by a collateral

Debenture Bonds

The principal will be paid at the maturity date

Straight Bonds

Will be paid through installment

Serial Bonds

Bonds that can be converted into common stocks. It enables lenders to become an owner of common stock.

Convertible Bonds

Bonds that can be redeemed or retired before their maturity date

Callable Bonds

Bonds that are not subject to redemption before maturity date

Non Callable Bonds

They can be transferred to other parties by mere delivery because they are not registered in the books of the issuing entity.

Bearer Bonds

Only the interest can be transfer

Coupon Bonds

They are registered in the books of the issuing entity.

Registered Bonds

risk depends the return of interest (low or high)

Interest Risk

The inflation is higher than bond interest.

Purchasing Power Risk

credit or default risk

Business/Financial Risk

Cannot be liquidated incase of emergency

Liquidity Risk

Expected pero na stop kasi na-call.

Call Risk

BOND INVESTMENT STRATEGIES

Active Strategies, Passive Strategies

seeks attractive capital gains when interest are expected to decline

Forecasted Interest Rates

Liquidation of one bond to purchase another bonds.

Bond Swaps

when you buy a bond and hold if to maturity.

Buy and Hold

portfolio of individual that matures on different dates.

Bond Ladder

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

Fixed rate government debt securities with a maturity range between 10 and 30 years.

Treasury Bonds

finals week2

Julliana Carandang · 13問 · 1年前

finals week2