obligation to repay money

debt

If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, $150,000 represents the _____.

principal

If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, 20 years represents the _____.

term

If a corporation requests a bank loan for $300,000 and receives approval for $150,000 with a rate of 10% for 20 years, 10% represents the _____.

interest

Based on amortization schedules, _____ interest from each monthly payment is paid at the beginning of the loan.

more

Defaulting on a loan can cause _____.

higher interest rates on future loans and disapprovals on future loans

contractual debt instruments with secured interest payments and a promise to repay the principal within a specific period of time

bonds

the principal or face-value of a bond

par value

The bond rating with the most risk is _____.

Poor/Junk

The bond rating with the least risk is _____.

Excellent

If a corporate bond sells at $500 par value, with a 10% annual coupon rate and a 20-year maturity, what is the bond’s principal?

$500

The bonds sold on the primary market are the company’s _____ issuance.

first

The first issuance of bonds are sold on the _____ market.

primary

Bonds sold among investors are sold on the ____.

secondary market

Secondary bond market sales are among _____.

investors

a share or percentage owned in a corporation

stock

Common stockholders have _____.

voting privileges

Preferred stockholders have _____.

guaranteed dividend privileges

selling stock to raise capital

equity financing

the process of private corporations issuing stock for the first time

initial public offering

The stable dividend policy provides a _____.

fixed, regular dividend each period

The constant dividend policy provides a _____.

dividend solely based on earnings

Which stock exchange offers the largest selection of publicly traded stock?

NYSE

Which stock exchange offers lower fees to list stock and experience in online trading?

NASDAQ

The buying and selling of stock is also called _____.

trading