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23 Cards in this Set
- Front
- Back
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Financial Intermediary
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A financial institution, such as, a commercial bank, that borrows from one group and lend to another
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Private Placement
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The nonpublic sale of securities
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Venture Capitalist
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Firm specializing in investing in the securities of small, emerging companies
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Investment Bankers
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An underwriter,a firm that sells new issues of securities to the general public
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Initial public offering (IPO)
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The first sale of common stock to the general public
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underwriting
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The process by which securities are sold to the general public and in which the investment banker buys the securities from the issuing firm.
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Originating House
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An investment banker that makes and agreement with a firm to sell a new issue of securities and forms the syndicate to market them
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Syndicate
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A selling group assembled to market an issue of securities
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Best-efforts Agreement
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Agreement with an investment banker who does not guarantee the sale of a security but who agrees to make the best effort to sell it
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Firm Commitment
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Agreement with an investment banker who guarantees a sale of securities by agreeing to purchase the entire issue at a specified price
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preliminary prospectus
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initial document detailing the financial condition of a firm that must be filed with the SEC to register a new issue of securities
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Securities and Exchange commission (SEC)
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Government agency that enforces the federal securities laws
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Registration
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process of filing information with the SEC concerning a proposed sale of securities to the general public
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certificates of deposit (CDs)
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A time deposit with a specified maturity date
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Negtiable certificates of deposit (jumbo CDs)
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A certificate of deposit in which the rate and the term are individually negotiated by the bank and the lender and which may be bought and sold
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Eurodollar certificates of Deposit (Eurodollar CDs)
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Time deposit in a foreign bank and denominated in dollars
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Money Market Mutual funds
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Mutual funds that specialize in short term securities
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Money market instuments
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Short term securities, such as treasury bills, negotiable certicates of deposit, or commercial paper
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U.S. treasury bill
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short term debt of the federal government
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Commercial Paper
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Unsecured, short term promissory notes issued by the most creditworthy corporations
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repurchase Agreement (repo)
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Sale of a short term security in which the seller agrees to buy back the security at a specified price
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banker's acceptance
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short term promissory note guaranteed by a bank
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Tax anticipation note
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Short term government security secured by expected tax revenues
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