Card 61
Question
Maturity
Answer
The length of time for which a bond issued
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Maturity
The length of time for which a bond issued
Coupon
The amount of interest that a bond pays
Insolvent
Unable to pay debts
Creditors
People or institutions to whom money is owned
Dividends
Payments by companies to their shareholers
Market makers
Businesses that buy and sell securities
Bid
The price at which a buyer is prepared to buy a security at a particular time
Offer
The price at which a seller is prepared to sell a security at a particular time
Yield
The rate of income an investor receives from a security
Deductible
That can be taken away from an amount of money you earn, from tax etc...
Treasury notes
US government bonds with a maturity of tweo to 10 years
Treasury bonds
Us government bonds with a maturity of 10 to 30 years
Gilts
UK government bonds
Default on something
To fail to pay money that you owe at the right time
To denominate
To express an amount of money using a particular unni (e.g. in US dollars)
Going public
Changing the business from a private to a public company by offering stocks for sale to financial institutions and the general public
IPO/ Intitial public offering/ Flotation
Selling stocks for the first time
To underwrite
To guarantee to buy the stocks of a stock issue if there are not enough other buyers
Derivatives
Financial instrumenst whose prices are dependent upon or derieved from underlying assets such as stocks and bonds
Future
A contract agreement to buy or sell a security, commodity or financial instrument at a predetermined price at a predetermined point in the future
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