WGU D775
Study online at https://quizlet.com/_hm0k2n
1. Accounting: Recording and reporting past financial transactions.
2. Finance: Managing assets, liabilities, and planning for future growth.
3. Personal Finance: Managing individual or household money (budgeting, saving, investing).
4. Public Finance: Government money management, including taxes, spending, and debt.
5. Business Finance / Corporate Finance: Managing company money, including investments, fund-
ing, and risk.
6. Capital Budgeting: Deciding which projects a company should invest in.
7. Cost of Capital: The return a company must earn to cover the cost of funding a project.
8. Financial Ratios: Comparisons of financial data to measure performance.
9. Common Stock: Ownership in a company with voting rights and potential dividends.
10. Preferred Stock: Ownership with fixed dividends and priority in asset claims, usually no voting rights.
11. Capital Appreciation: Increase in an asset's value over time.
12. Bonds: Loans made to companies or governments that must be repaid with interest.
13. Coupon Rate: The interest rate a bond pays to investors.
14. Maturity: The date a bond's final payment is due.
15. Corporate Bonds: Bonds issued by companies, usually higher risk and higher return than government
bonds.
16. Municipal Bonds: Local or state government bonds, often tax-exempt.
17. Treasury Bonds: U.S. federal government bonds, considered very low risk.
18. Financial Derivatives: Contracts whose value is based on another asset's price.
19. Options: Contracts giving the right (not obligation) to buy/sell at a set price before a date.
20. Futures: Contracts requiring buying/selling at a set price on a set date.
21. Investment Funds: Pools of money from many investors invested in a portfolio.
22. Mutual Funds: Investment funds priced daily based on net asset value (NAV).
23. Exchange-Traded Funds (ETFs): Investment funds traded like stocks.
24. Hedge Funds: High-risk funds for wealthy or institutional investors.
25. Pension Funds: Retirement savings invested for long-term growth.
26. Public Markets: Securities traded openly on exchanges.
27. Private Markets: Securities traded privately, not on public exchanges.
28. Primary Market: Where new securities are sold for the first time (e.g., IPO).
29. Secondary Market: Where existing securities are traded between investors.
30. Dealer Market: Market where dealers buy/sell from their own accounts.
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, WGU D775
Study online at https://quizlet.com/_hm0k2n
31. Auction Market: Market where prices are set by matching highest bid and lowest ask.
32. Depository Institutions: Banks, credit unions, and others that take deposits and make loans.
33. Investment Institutions: Firms that help raise or invest money (e.g., investment banks, mutual funds).
34. Insurance Companies: Firms that manage financial risk by providing coverage.
35. Gross Domestic Product (GDP): Total value of goods and services produced in a country.
36. Consumer Price Index (CPI): Measures changes in prices of consumer goods and services.
37. Producer Price Index (PPI): Measures price changes at the producer/wholesale level.
38. Inflation: Overall rise in prices, reducing purchasing power.
39. Consumer Spending: Total spending by households on goods and services.
40. Unemployment Rate: Percentage of the labor force without jobs but seeking work.
41. Full Employment: Lowest unemployment rate possible without causing inflation.
42. Yield Curve: Graph comparing interest rates on short- and long-term bonds.
43. Interest Rates: Cost of borrowing money, usually set by central banks.
44. Shareholders: Owners of a corporation.
45. Agency Problem: Conflict between managers (agents) and shareholders (owners).
46. Board of Directors (BOD): Group that oversees company management.
47. Sustainability: Finance practices considering environmental, social, and governance (ESG) factors.
48. Corporate Social Responsibility (CSR): Business's obligation to act ethically and benefit society.
49. Environmental Impact: The effect of business activities on the natural environment.
50. Legal vs. Ethical Dilemma: When actions may be legal but not morally right.
51. Offshoring: Moving business operations to another country, often for cost savings.
52. What is business finance?: The use of financial measures to help management make decisions.
53. What does capital budgeting involve?: Evaluating potential investment projects.
54. Role of financial ratios in business finance?:
55. Another term for business finance?: Corporate finance.
56. Which is a characteristic of business finance?: Strategic future planning.
57. Definition of stocks?: Certificates representing ownership in a company.
58. Preferred stock sometimes described as?: Hybrid security.
59. What do investors seek from bonds?: Steady and predictable income.
60. Municipal bonds are used for?: Funding public infrastructure projects.
61. Main purpose of pension funds?: Ensure growth and sustainability of retirement savings.
62. Function of financial markets?: Facilitate the flow of capital from savers to borrowers.
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Study online at https://quizlet.com/_hm0k2n
1. Accounting: Recording and reporting past financial transactions.
2. Finance: Managing assets, liabilities, and planning for future growth.
3. Personal Finance: Managing individual or household money (budgeting, saving, investing).
4. Public Finance: Government money management, including taxes, spending, and debt.
5. Business Finance / Corporate Finance: Managing company money, including investments, fund-
ing, and risk.
6. Capital Budgeting: Deciding which projects a company should invest in.
7. Cost of Capital: The return a company must earn to cover the cost of funding a project.
8. Financial Ratios: Comparisons of financial data to measure performance.
9. Common Stock: Ownership in a company with voting rights and potential dividends.
10. Preferred Stock: Ownership with fixed dividends and priority in asset claims, usually no voting rights.
11. Capital Appreciation: Increase in an asset's value over time.
12. Bonds: Loans made to companies or governments that must be repaid with interest.
13. Coupon Rate: The interest rate a bond pays to investors.
14. Maturity: The date a bond's final payment is due.
15. Corporate Bonds: Bonds issued by companies, usually higher risk and higher return than government
bonds.
16. Municipal Bonds: Local or state government bonds, often tax-exempt.
17. Treasury Bonds: U.S. federal government bonds, considered very low risk.
18. Financial Derivatives: Contracts whose value is based on another asset's price.
19. Options: Contracts giving the right (not obligation) to buy/sell at a set price before a date.
20. Futures: Contracts requiring buying/selling at a set price on a set date.
21. Investment Funds: Pools of money from many investors invested in a portfolio.
22. Mutual Funds: Investment funds priced daily based on net asset value (NAV).
23. Exchange-Traded Funds (ETFs): Investment funds traded like stocks.
24. Hedge Funds: High-risk funds for wealthy or institutional investors.
25. Pension Funds: Retirement savings invested for long-term growth.
26. Public Markets: Securities traded openly on exchanges.
27. Private Markets: Securities traded privately, not on public exchanges.
28. Primary Market: Where new securities are sold for the first time (e.g., IPO).
29. Secondary Market: Where existing securities are traded between investors.
30. Dealer Market: Market where dealers buy/sell from their own accounts.
1/8
, WGU D775
Study online at https://quizlet.com/_hm0k2n
31. Auction Market: Market where prices are set by matching highest bid and lowest ask.
32. Depository Institutions: Banks, credit unions, and others that take deposits and make loans.
33. Investment Institutions: Firms that help raise or invest money (e.g., investment banks, mutual funds).
34. Insurance Companies: Firms that manage financial risk by providing coverage.
35. Gross Domestic Product (GDP): Total value of goods and services produced in a country.
36. Consumer Price Index (CPI): Measures changes in prices of consumer goods and services.
37. Producer Price Index (PPI): Measures price changes at the producer/wholesale level.
38. Inflation: Overall rise in prices, reducing purchasing power.
39. Consumer Spending: Total spending by households on goods and services.
40. Unemployment Rate: Percentage of the labor force without jobs but seeking work.
41. Full Employment: Lowest unemployment rate possible without causing inflation.
42. Yield Curve: Graph comparing interest rates on short- and long-term bonds.
43. Interest Rates: Cost of borrowing money, usually set by central banks.
44. Shareholders: Owners of a corporation.
45. Agency Problem: Conflict between managers (agents) and shareholders (owners).
46. Board of Directors (BOD): Group that oversees company management.
47. Sustainability: Finance practices considering environmental, social, and governance (ESG) factors.
48. Corporate Social Responsibility (CSR): Business's obligation to act ethically and benefit society.
49. Environmental Impact: The effect of business activities on the natural environment.
50. Legal vs. Ethical Dilemma: When actions may be legal but not morally right.
51. Offshoring: Moving business operations to another country, often for cost savings.
52. What is business finance?: The use of financial measures to help management make decisions.
53. What does capital budgeting involve?: Evaluating potential investment projects.
54. Role of financial ratios in business finance?:
55. Another term for business finance?: Corporate finance.
56. Which is a characteristic of business finance?: Strategic future planning.
57. Definition of stocks?: Certificates representing ownership in a company.
58. Preferred stock sometimes described as?: Hybrid security.
59. What do investors seek from bonds?: Steady and predictable income.
60. Municipal bonds are used for?: Funding public infrastructure projects.
61. Main purpose of pension funds?: Ensure growth and sustainability of retirement savings.
62. Function of financial markets?: Facilitate the flow of capital from savers to borrowers.
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