Chapter 9 – Management of Short-term, Intermediate, and Long-term Funds

Foreign Direct Investment (FDI)

A firm's long-term investment in a foreign country involving capital, management, and technical assets.

International Bonds

Debt securities sold outside the borrower's country.

Foreign Bonds

Bonds issued by a foreign company in the investor’s local market.

Eurobonds

Bonds denominated in one currency but sold to investors in different countries.

Joint Ventures

Partnerships formed with local investors in foreign markets to reduce risk and gain expertise.

Marketable Securities

Short-term debt instruments like U.S. Treasury bills and negotiable certificates of deposit.

Broker Market

Securities exchanges that facilitate transactions between buyers and sellers.

Dealer Market

Market where buyers and sellers have their orders executed by securities dealers.

Market Makers

Securities dealers who offer to buy or sell certain securities at stated prices.

Over the Counter (OTC) Market

Market where smaller, unlisted securities are traded.

Bid Price

The highest price offered to purchase a security.

Ask Price

The lowest price at which a security is offered for sale.

International Equity Market

Stock issuance across multiple countries.

Bond

Long-term debt instrument used by business and government to raise large sums of money, generally from a diverse group of lenders.

Nasdaq Market

An all-electronic trading platform used to execute securities trades.