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73 Cards in this Set
- Front
- Back
Cash reserves
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Short-term money market instruments
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Treasury bills
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Treasury obligations with maturities of one year or less
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Bonds
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Interest-bearing debt obligations
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Treasury notes
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Treasury obligations with maturities of more than 1 year but less than 10 years
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Common stock
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A proportionate ownership stake in a corporation
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Defined-benefit retirement plan
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Employer-funded retirement program. Employer will pay certain amount to employee depending on salary history and time employed
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Defined-contribution retirement plan
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Employee-funded retirement program in which employees direct and contribute to their own retirement plans. Retirement income depends on employee contribution
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Portfolio
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Diversified collection of stocks, bonds and other assets
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Risk
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Chance of a loss of wealth or a failure to meet investment goal
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Expected return
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Future return anticipated after analyzing the financial asset.
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efficient-market hypothesis
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Idea that every security is correctly priced, not overvalued or undervalued
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Return on equity
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Accounting net income divided by stockholders' equity or book value per share
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Regression to the mean
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Tendency of profit rates to return toward long-term industry and economy wide averages
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Price-earnings (P/E) Ratio
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Stock price divided by earnings per share
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Incentives
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Financial reasons for inciting an action
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Investor psychology
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The reasons, emotions, and perceptions of the human brain as they pertain to investments
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Stock Quotes
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Offers to buy and sell shares at specific prices
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Real time
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Up-to-the-minute, current stock quote
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EDGAR
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Electronic Retrieval Analysis System for SEC filings
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Ticker symbol
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Unique one, two, three or four letter code for a company
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10Q report
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Quarterly accounting information filed with the SEC
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Proxy Statement
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Annual meeting announcement and shareholder voting information
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13D
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Filings made to the SEC within 10 days of an entity's attaining a 5 percent or more position in any class of a company's securities
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Form 144
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Filings submitted to the SEC by holders of restricted stock who intend to sell shares
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Stockbroker
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Financial agent who assists investors with buying and selling financial assets
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Churning
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Illegal broker-initiated trading in client accounts to generate commission income
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Security analyst
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Finance professional who analyzes and makes recommendations regarding stocks and other financial assets.
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Portfolio manager
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Finance professional in charge of making buy, sell, and hold decisions for a portfolio
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Certified Financial Planner (CFP)
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Finance professional who helps individuals identity and meet financial needs.
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Investment banker
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Finance professional who helps companies and government organizations acquire capital through the issuance of financial assets.
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New York Stock Exchange (NYSE)
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Largest stock market in terms of market capitalization
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Agency auction market
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Market in which brokers represent buyers and sellers and prices are determined by supply and demand
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Specialist
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Employee of NYSE firm who manages the market for an individual stock
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Round lot
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100 shares
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American Stock Exchange (Amex)
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Nation's second-largest stock exchange
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Public float
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Common stock held by unaffiliated institutional and individual investors
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Nasdaq Stock Market
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Largest organized equities market by trading volume and number of listed companies
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Negotiated market
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Price determination through bargaining
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Market makers
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Member firms that use their own capital to trade and hold an inventory of NASD stock
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Customer order flow
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Customer buy and sell activity
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Market maker spread
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Difference between bid and ask prices
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Inside market
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Highest bid and lowest offer prices
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Nasdaq SmallCap Market
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Market for smaller companies that trade prior to full listing on the Nasdaq national market
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Penny stocks
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Equities priced below $1
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OTC Bulletin Board (OTCBB)
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Regulated quotation service for very small over-the-counter equities securities
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American Depositary Receipts (ADR)
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Coupons that signify ownership of foreign stock
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Dow Jones Industrial Averages (DJIA)
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Price-weighted index of 30 large, industry-leading stocks
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DJIA divisor
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Adjustment factor used to account for stock splits
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S&P 500 index
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Popular value-weighted market index
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Equity benchmark
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Performance standard to be evaluated against
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Russell 3000 index
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Market capitalization index for the 3000 largest U.S. companies (98 percent of U.S. market cap)
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Russell 1000 index
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Market capitalization index for the 1000 largest U.S. companies (90 percent of U.S. market cap)
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Dow Jones Wilshire 5000 Composite Index
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Total dollar value of the U.S. equity market (in billions of dollars)
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Nasdaq Composite Index
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Market value-weighted index of all 5000+ stock listed on the Nasdaq Stock Market
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Nasdaq 100 Index
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Market-capitalization-weighted index of Nasdaq's largest companies
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S&P MidCap 400 Index
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Market cap index for 400 medium-sized domestic stocks
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Dow Jones Wilshire 4500 Completion Index
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Mid-cap index of Dow Jones Wilshire (5000) Index companies minus the S&P 500
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Russell 2000 index
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Small-company stock price index for the 2000 smallest companies in the Russell 3000 index
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Nikkei 225 Index
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Leading measure of the Japanese stock market
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FTSE-100
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Capitalization-weighted index of the 100 top companies on the London Stock Exchange
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TSE-35
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Market basket of 35 blue-chip Canadian companies
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Hang Seng Index
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Market-cap-weighted measure of Hong Kong stocks
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Europe, Australasia, Far east (EAFE) index
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Leading global stock index of stocks from 21 countries
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Emerging market
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Stock markets in developing nations
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Developed market
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Stock markets in mature countries.
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Sarbanes-Oxley Act
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Law instituting public accounting reforms and investor protections
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Self-regulatory organizations (SROs)
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Industry group with oversight authority granted by the SEC
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National Association of Securities Dealers (NASD), Inc.
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A self-regulatory organization of the securities industry
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Stock Watch
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Computerized system that flags unusual volume or price changes
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Intermarket Surveillance Group
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Coordinated effort to detect cross-market manipulative trading
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Securities arbitration
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Private form of dispute resolution with binding outcomes
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Circuit breakers
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Rules for halting securities trading in volatile markets.
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Investment clubs
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A group formed to learn and invest. Members contribute money and investment idea.
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