Financial Terms Flashcards

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Stock

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Capital raised by a business through issuance of shares.

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Capital

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Accumulated assets.

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Shares

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A portion of an amount.

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Initial Public Offering (IPO)

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A company’s flotation on the stock exchange.

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Proxy

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The authority to represent someone else, especially when voting.

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Public Company

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A company whose shares are traded on the stock exchange.

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Private Company

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Privately owned company (that has not extended a portion of its company through public shares).

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Bond

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A loan agreement where investor lends money to issuer, with expectation of face value repayment on a specified date with periodic interest payments throughout the duration.

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Mutual Fund

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Pool of money from multiple investors to purchase a diversified portfolio of stocks, bonds or other securities.

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Commodity

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Raw material or primary agricultural product that can be bought and sold.