Goal of the firm
Sole proprietorship
General partnership
Limited partnership
Corporation
an entity that legally functions separate and apart from its owners
S-corporation
a security offering where all investors have the opportunity to acquire a portion of the financial claims being sold
a security offering limited to a small number of potential investors
Primary market
Secondary market
the sale of additional stock by a company whose shares are already publicly traded
markets where you can buy or sell something at a future date
Exchange
formal organizations that facilitate the trading of securities
NASDAQ
a financial specialist who underwrites and distributes new securities and advises corporate clients about raising new funds
Syndicate
a group of investment bankers who contractually assist in the buying and selling of a new security issue
several underwriting groups bid for the right to purchase the new issue from the corporation that is raising funds
the process of marketing a new security issue to a select group of investors
Sarbanes-Oxley Act
Opportunity cost of funds
the additional return required by investors for securities that cannot be quickly converted into cash at a reasonably predictable price
the interest rate paid on debt securities without an adjustment for any loss in purchasing power
Term structure of interest rates
the rate of return a bondholder will receive if the bond is held to maturity
Income statement
Balance sheet
Current assets
Fixed assets
Debt
Equity
Retained earnings
Liquidity
Gross profit
Taxable income
Depreciation
Capital gain
gains from selling any asset that is not part of the ordinary operations