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Action Items

Notes


Terminology

Firm - Company

Stockholders - people who hold the stocks

Free enterprise - economy where market (people) determines prices, products, and services rather than the government

Finance - the system that includes the circulation of money, the granting of credit (debt), the making of investments, and the provision of banking facilities.

Financial Management (Corporate finance) - focuses on decisions relating what types of asset to acquire, how to raise capital and how to maximize the value of the company.

Capital Markets - markets where interest rates, stock and bond prices are determined

Financial Institutions - banks, investment banks, mutual funds, stockbrokers, insurance company and much more.

Security analysis - deals with finding the proper values of securities

Securities - stocks or/and bonds.

Portfolio theory - best way to proper structure portfolio’s or “baskets” of stocks and bonds.

Portfolio - collection of investment chosen by someone

Market analysis - understanding the market if it is “too high”, “too low” or “just right”.

Non-profitable organization businesses (NPO) - tax-exempt organization formed for religious, charity, artistic, scientific, educational purposes.

Profitable organization (PO) - organization that can be profitable and earns profit (income).