FINC business slides (Final Exam)

FINC Tagline

show me the money

good debt

lets an individual or company manage finances effectively so that it becomes easy to build on existing wealth, purchase what is needed, and prepare well for uncertainties

bonds

an investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments

loans

company borrowing money from the bank

equity financing

involves selling a portion of a company’s equity in return for capital

public

traded on a stock exchange- you an i could go buy it today

private

I invest in a business through its owner or a private equity firm

share

gives you partial ownership in a company (stock). you can vote on what happens in the company

stockholder or shareholder

someone who owns a company’s stock

if you buy a company’s stock, what should you expect in return?

-dividends (distribution of profits by a company to its shareholders)

-appreciation in value of the stock, so you can sell it for more than you bought it for later

equity

what a company is ‘worth’. can refer to the value of your equity stake in a business

capital

money used to build, run or grow a business

financial planner

helps people manage their investment portfolios

stockbroker

a person who is licensed to buy and sell securities on behalf of clients

commercial bankers

manage profit-oriented financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services

investment bankers

help companies raise long-term financing. firms that act as intermediaries, buying securities from corporations and governments and reselling them to the public

internal analysts

financial analysts will forecast financials for the company; consider investment opportunities

external analysts

analyze company’s performance. they generate a report (as an individual analyst, an investment bank or a financial services company)