9/2 BUS1 170 S.I. Session Flashcard

Front

Who is the owner of a corporation?

Back

Shareholders

Front

Who would most prefer for the corporation to take on fewer risky projects? (Who would prefer to 'play it safe'?)

Back

Bondholders

Front

What is the primary financial goal of the corporation?

Back

Maximize shareholder value

Front

What is the difference between a Money Market and a Capital Market?

Back

A money market for short term debt securities, and a capital market is for intermediate and long-term debt.

Front

If an individual buys a U.S. treasury bond directly from the U.S. government, this is a...

Back

Primary Market Transaction

Front

True/False: The stock market is considered a secondary market

Back

True

Front

How do hedge funds typically restrict investments?

Back

Large minimum investments

Front

What is the primary purpose of an IPO?

Back

To raise capital by issuing shares to the public

Front

True/False: Indexed mutual funds usually have higher fees than managed mutual funds

Back

False