Fin254 Test Terms

TEST TERMS

Test 1

Liquidity, Rate, Yield, Money Market Accounts, Certificates of Deposit, Time Value of Money, Lending Products: Discount Method, Add-On Method, Simple Interest Method of Loan payment calculation, Mutual Funds: NAV, Open-End, Closed-End, Load, No-Load, Dollar-Cost-Averaging, Sector Fund, Prospectus, Index Fund, Advantages of Mutual Fund Investing.

Test 2

Wall Street Journal Bond listings:
For: corporate bonds, treasury bonds/notes/bills and strips.

Bond indenture, call provision, coupon rate, debenture, general obligation issues, junk bonds, maturity date, par value, sinking-fund provision, Treasury Bills/Notes/Bonds/Strips, Zero-coupon bonds.

Current yield, deep discount bonds, Term Structure of Interest Rates, Yield-to-Call, Yield-to-Maturity.

Calculations that we need to aware of:

Coupon Yield, Current Yield, Yield-to-Maturity, Yield-to-Call, Bond Valuation, Converting a bond quotation into a price.

As before, I will provide time value formulas, the others are up to you.

Federal Reserve: Discount Rate, Federal Funds Rate, Open Market Operations

Brokers: Cash Vs. Margin accounts, Types of Orders, Short Selling, Full Service vs. Discount Brokers.

Securities Business: Syndicate, Investment Bankers, Underwriters, Standby Underwriting, Best Effort Underwriting, Primary and Secondary markets.

Exchanges: New York Stock Exchange, American Stock Exchange, Over-the-Counter Market. Commissioned Brokers, Floor Brokers, Registered Competitive Market Makers, Specialists.

Averages & Indexes: The Dow Jones Industrial Average, Dow Transportation Average, Dow Utilities Average, S&P 500.

FINAL EXAM TERMS

Business Cycle, Deficit, Discount Rate, Fiscal Policy, Monetary Policy.

Bottom-Up Approach, Top-Down Approach.

Beta, Growth Stock, Price-Earnings Ratio.

In addition to the terms listed above, be familiar with the following:

The stock listing in the Wall Street Journal.

Preferred Stocks and their characteristics

Count on calculations dealing with: Price-Earnings Ratio, Dividend Yield.