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Chapter 2 Terms

Across
acts as a middleman in the process of raising funds and in most cases, takes a risk by underwriting an issue of securities
allows NYSE member firms to electronically transmit all market and limit orders directly to the specialist at the trading post or the member trading booth
2nd type of floor breaker
a hybrid form of security combining some of the elements of equity ownership and creditor claims
refers to the guarantee the investment banking firm gives the selling firm to purchase its securities at a fixed price, thereby eliminating the risk of not selling the whole issue of securities and having less cash then desired
the danger of your money/investment being taxed
incorporates all the factors we have previously discussed, but has a slightly different way of looking at the risk premium.
formed in 2005 as an ECN and was granted exchange status by the SEC
Exchange trade fund is a closed-end funds, and structured products such as the Standard and Poors 500 index (SPDRS) and the DJIA (DIAMONDS)
the return investors require for allowing others to use their money for a given time period
a stock exchange in NY that began as a physical location
a way of exchanging assets
used to be an OTC market
different for each investment
the commitment of current funds in anticipation of receiving a larger future flow of funds
Down
represents ownwership intreests and include common stock, such as warrants and options
requires the employee to make contributions out of each pay check into a retirement fund
measures the risk of a security relative to the market
1st type of floor breaker
A combination of securities and assets
the rate one should earn if put into the safest investment option
risk that cannot be diversified away in a portfolio of stocks, and so it has special importance to the investor
the expected return on the stock market minus the expected risk free rate of U.S. government securities
specifies the amount of the retirement benefit based on income and years of service
represented by debt instruments offered by financial institutions, industrial corporations. or government
bringing private companies public for the first time
represents an actual tangible asset that may be seen, felt, held, or collected
Electronic communication network