Business Finance Chapter 7 Vocabulary

Front

a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified maturity date (due date)

Back

Bond

Front

a measure of the quality and safety of a company’s debt

Back

Bond rating

Front

the increase in the value between the purchase price and the maturity value

Back

Capital gain

Front

unsecured, short-term debt instruments issued by corporations

Back

Commercial paper

Front

an equity security representing ownership in a corporation with voting rights

Back

Common stock

Front

the stated annual interest rate for a bond

Back

Coupon rate

Front

a person who buys a bond, thus lending money to the organization

Back

Creditor

Front

a corporate bond without collateral

Back

Debenture bond

Front

a portion of company profits

Back

Dividend

Front

when a company offers stock to outside investors for the first time

Back

Initial public offering (IPO)