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  Ask price-Bid Price
   
   
      
  NYSE members who execute customer orders to buy and sell stock transmitted to the exchange floor.
   
   
      
  A bonds annual coupon divided by its price. It's a measure of the 
market's expectations of future interest rates given the current market 
conditions
   
   
      
  Stockholder
   
   
      
  ---Arbitrary cutoff ---Ignores cash flows beyond cutoff---Biased against long-term
   
   
      
  matches buyers and sellers for fee
   
   
      
  issuer has right to end early
   
   
      
  The process of determining the present value of a payment or a stream of payments that is to be received in the future.
   
   
      
  ---Easy to understand /compute---Biased toward liquidity---Includes time value of money
   
   
      
  -V0 Increases as --d1 increases --g increases --r decreases- Price grows by a factor of g every year
   
   
      
  convert bond to stock
   
   
      
  The corporation continues in existence and is not dependent on the lives of its owners
   
   
      
  More difficult to compute
   
   
      
  Issuer ---> Investor
   
   
      
  Owning trading license
   
   
      
  Issuer doesn't pay if catastrophe occurs
   
   
      
  a corporation's first offer to sell stock to the public
   
   
      
  The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings.
   
   
      
  Members who are dealers for a particular security
   
   
      
  Members who execute orders for busy commission brokers for a fee
   
   
      
  ---Ignores time value of money---Arbitrary cutoff ---Ignores cash flows beyond cutoff---Biased against long-term
   
   
      
  brokers that execute orders for members or nonmember firms
   
   
      
  Voting RightsProxy voting- right to vote for someone elseClasses of 
stocks-proportion of shared dividends-proportion of assets in 
liquidation-Preemptive right to new issue
   
   
      
  Informal network of brokers that negotiate dealsDealers buy and sell 
from their own inventoryGovernment securities are traded OTC
   
   
      
  Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt.
   
   
      
  broker that works for particular member firm
   
   
      
  risk free
   
   
      
  Payment depends on income
   
   
      
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