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Financial Markets Correct Answers A market where financial assets can be bought or sold. Role of Financial Markets Correct Answers Transfers funds from suprlus units to deficit units. Suplus Units Correct Answers (Investors) Those who receive more money then they spend. Deficit Units Correct Answers (Issuer) Those who spend more money then they receive. Securities Correct Answers Claims on issuer Debt Securites Correct Answers Credit or borrowed funds incured by the issuer (Bonds ...

Financial Markets Correct Answers markets in which funds are transferred from people who have an excess of available funds to people who have a shortage leads to economic efficiency Monetary Policy Correct Answers the management of interest rates and the quantity of money (by the Fed) Three financial markets deserve particular attention: Correct Answers stock (major effect on wealth and firm's investment decisions), bond (where interest rate is determined), and foreign exchange Capi...

Financial Market Correct Answers A market in which financial assets (securities) such as stocks and bonds can be purchased or sold. Funds are transferred in financial markets when one party purchases financial assets previously held by another party. Role of Financial Markets Correct Answers Transfer funds from those who have excess funds to those who need funds. Accommodating Corporate Finance Needs: The financial markets serves as the mechanism whereby corporations (acting as deficit uni...

Apprenticeship Ideas Correct Answers the idea that the world is filled with givers, matchers and takers personally we like to be matchers, professionally we like to be takers realistically we should be givers and pay it forward Characteristics of Corporate Careers Correct Answers normal part of business team, routine business functions Characteristics of Advisory Careers Correct Answers workaholics, trade work life balance to jump to people's needs Characteristics of Investor Careers...

Generally Accepted Accounting Principles (GAAP) Correct Answers The practice and procedure guidelines used to prepare and maintain financial records and reports; authorized by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Correct Answers The accounting profession's rule-setting body, which authorizes generally accepted accounting principles (GAAP) Public Company Accounting Oversight Board (PCAOB) Correct Answers A not-for-profit corporation establish...

Major difference between finance and accounting Correct Answers Finance- all about the future/ predictions Accounting All about the past/ snapshot of the value « as at » What are 3 major decisions in finance Correct Answers Investments, financing, and dividends Which of the following was NOT identified as one of the three main areas of financial study? A) Business finance B) Capital Budgeting C) Investments D) Financial markets and institutions Correct Answers What is a broker?...

Which of the following should be the primary goal pursued by the financial manager of a firm? Correct Answers Maximizing the market value of the firm's stock In general, the role of a financial manager is to plan for the acquisition and use of funds so as to maximize the value of the firm. Correct Answers True In a competitive marketplace, "good ethics" is a wonderful idea but an impractical standard, because there are simply too few benefits to be gained from maintaining high business ...

Financial Services Correct Answers the area of finance concerned with the design and delivery of advice and financial products to individuals, businesses, and governments managerial finance Correct Answers concerned with the duties of the financial manager working in a business financial managers Correct Answers administer the financial affairs of all types of businesses- private and public, large and small, profit-seeking and not-for-profit sole proprietorship Correct Answers a busines...

Net present value (NPV) Correct Answers The difference between an investment's market value and its cost Discounted cash flow (DCF) Correct Answers The process of valuing an investment by discounting back its future cash flows Net present value rule Correct Answers An investment should be accepted if the net present value is positive and rejected if it is negative Payback period Correct Answers The amount of time required for an investment to generate cash flows sufficient to recover i...

Apprenticeship Correct Answers Process of giving or receiving guidance Finance is known for this Corporate Finance Correct Answers Real Estate Firms Corporations Private Equity Firms Buy Side Correct Answers Mutual Funds Hedge Funds Foundations and endowments Insurance CO and Pension Family Offices Chinese Wall Correct Answers Separates M and A etc. and private investments etc. within an investment bank Finance measure of returns Correct Answers Cash flows Accounting measur...