CAPITAL MARKET FINAL

• PHILIPPINE STOCK EXCHANGE - KNOWN AS THE PAMILIHANG SAPI NG PILIPANAS
• T-BILLS ARE THE SECURITIES BY THE NATIONAL GOVERNMENT WITH A MATURITY OF LESS THAN A YEAR.
• T-BILLS


  securities issued by the national government with a maturity of less than a year
• INDENTURE


  the contract/agreement between the firm issuing bonds and bondholder
• PAR VALUE


  the principal amount of the bond being returned to the bondholder at maturity
• PHILIPPINE STOCK EXCHANGE


  also known as the "Pamilihang Sapi ng Pilipinas"
• COUPON RATE


  the % of par value that will be paid out annually in the form of interest
• PREFFERED SHARE


  this type of share has no voting rights, less volatile, fixed dividends
• CURRENT YIELD


  refers to the ratio of the annual payment to the bond's market price
• ORGANIZED STOCK EXCHANGE


  this stock exchange has a physical location for example: NYSE and PSE.
• OVER-THE-COUNTER STOCK EXCHANGE


  this stock exchange trades share using systems of computers and telephones
• STOCK INDEX


  a numerical presentation of group of stocks that is used to track their collective performance
• PRIMARY MARKET


  this market refers to the original sales of securities by the governments and corporation
• COMMERCIAL PAPER


  Unsecured, short term debt instrument issued by corporation used for meeting short term obligation
• BEARER BONDS


  another term for registered bond certificate which is likened to cash who ever is in possession of it has the titles.
• RECOGNIZED STOCK EXCHANGED


  a stock exchange registered and identified by the securities and exchange of commission .
• COMMON SHARE


  the type of share that has voting rights, more volatile, and the payment of dividends fluctuates.
• PAR VALUECOUPON INTEREST RATE

  2 set of cash flow received by bondholders/investors
• EQUITY SHARES


  long term financing options for firms looking raise capital
• INITIAL PUBLIC OFFERING (IPO)


  process of offering shares of a private corporation to public in a new stock issuance for the first time
• WEIGHTED AVERAGE COST OF CAPITAL (WACC)


  it represents a companys average after-tax cost of capital from all sources
• DEBT


  An obligation that requires one party, the debtor, to pay money borrowed or otherwise withheld from another party, the creditor.
• COST OF DEBT

  The return that a company provides to its debtholders and creditors; is also referred as the yield to maturity on a firms debt
• ARBITRAGE


  the simultaneous buying and selling of securities, currency, or commodities in different markets.
• SECUREDUNSECURED

  2 basic classification of debt
• RISK, REQUIREMENTS, CONTROL, TIME


  4 factors needed to considered first before deciding whether to use debt or equity financing
• EQUITY FINANCING, DEBT FINANCING


  2 major types of financing that a company/business may use
• INTERNALIZATION


  -designing a product in a way that it may be readily consumed across multiple countries.-used by companies looking to expand their global footprint beyond their own domestic market-often requires modifying products to conform to the technical or cultural needs of a given country,
• ACT LOCALLY


  refer to the need to adapt the marketing mis elements to the requirements of the local environment
• THINK GLOBALLY


  imply a process of standardization, used as method to improve efficiency when a product is marketed in multiple environments.
• -NEW YORK STOCK EXCHANGE-NASDAQ-TORONTO STOCK EXCHANGE-JAPAN EXCHANGE GROUP-SHANGHAI STOCK EXCHANGE-SHENZHEN STOCK EXCHANGE-STOCK EXCHANGE OF HONGKONG-LONDON STOCK EXCHANGE-EUROPEAN UNION-DEUTSCHE BORSE

  10 financial markets around the world
• NEW YORK STOCK EXCHANGE

  The largest in the WORLD (market capitalization - market value of outstanding shares: $14.4 trillion
• JAPAN EXCHANGE GROUP


  The largest exchange in ASIA
• LONDON STOCK EXCHANGE


  EUROPES largest exchange
• AMSTERDAM, BRUSSELS, LISBON, LONDON, AND PARIS


  under european union, euronext has headquarters in
• FORIEGN BONDS


  the traditional instrument in the international bond market. They are sold in a foreign country and are denominated in that country's currency.
• -LOWER INFLATION-PENSIONS-STOCK AND BOND MARKET PERFORMANCE-RISK MANAGEMENT-INVESTORS

  5 factors affecting the long-run trends of increased financial market activity
• YIELD


  income the investors receives while owning an investment
• CAPITAL GAINS


  increases in the value of the investment itself, not available to the owner until the investment is sold
• MUTUAL FUNDSHEDGE FUNDSINSURANCEPENSION FUNDSALGORITHMIC TRADERS

  5 types of institutional investors