{"id":695,"date":"2023-03-28T17:07:27","date_gmt":"2023-03-28T17:07:27","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/?post_type=chapter&p=695"},"modified":"2023-04-02T23:45:31","modified_gmt":"2023-04-02T23:45:31","slug":"glossary-of-key-terms","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/chapter\/glossary-of-key-terms\/","title":{"raw":"Glossary of Key Terms","rendered":"Glossary of Key Terms"},"content":{"raw":"
\r\n \t
\r\n

Chapter 13 Glossary of Key Terms<\/h2>\r\n<\/dt>\r\n \t
<\/dt>\r\n \t
bond returns<\/dt>\r\n \t
sums the periodic interest payments and the change in bond price in a given period and divides by the bond price at the beginning of the period<\/dd>\r\n<\/dl>\r\n
\r\n \t
commercial paper (CP)<\/dt>\r\n \t
a short-term, unsecured security issued by corporations and financial institutions to meet short-term financing needs such as inventory and receivables<\/dd>\r\n<\/dl>\r\n
\r\n \t
debenture<\/dt>\r\n \t
a common type of unsecured bond issued by a corporation<\/dd>\r\n<\/dl>\r\n
\r\n \t
indenture<\/dt>\r\n \t
legal term for a bond contract<\/dd>\r\n<\/dl>\r\n
\r\n \t
inflation<\/dt>\r\n \t
a general increase in prices and a reduction in purchasing power; expected rate is a key component of interest rates<\/dd>\r\n<\/dl>\r\n
\r\n \t
initial public offering (IPO)<\/dt>\r\n \t
the first time a firm offers stock to the public<\/dd>\r\n<\/dl>\r\n
\r\n \t
mortgage bond<\/dt>\r\n \t
bond issued by a corporation using a real asset, such as property or buildings, to guarantee it<\/dd>\r\n<\/dl>\r\n
\r\n \t
municipal bonds (munis)<\/dt>\r\n \t
bonds issued by a local government, territory, or agency; generally used to finance infrastructure projects<\/dd>\r\n<\/dl>\r\n
\r\n \t
negotiable certificates of deposit (NCDs)<\/dt>\r\n \t
large CDs issued by financial institutions; redeemable at maturity but can trade prior to maturity in a broad secondary market<\/dd>\r\n<\/dl>\r\n
\r\n \t
primary market<\/dt>\r\n \t
market for new securities<\/dd>\r\n<\/dl>\r\n
\r\n \t
seasoned equity offering (SEO)<\/dt>\r\n \t
a method used by new IPOs to raise capital by offering additional shares of stock to the public<\/dd>\r\n<\/dl>\r\n
\r\n \t
secondary market<\/dt>\r\n \t
market for used securities<\/dd>\r\n<\/dl>\r\n
\r\n \t
shelf registration<\/dt>\r\n \t
part of Securities and Exchange Commission (SEC) Rule 415; allows a company to register with the SEC to issue new shares but allows up to two years before issuing the shares<\/dd>\r\n<\/dl>\r\n
\r\n \t
special purpose acquisition companies (SPACs)<\/dt>\r\n \t
a special form of IPO<\/dd>\r\n<\/dl>\r\n
\r\n \t
stock returns<\/dt>\r\n \t
sums the periodic dividend payments plus the change in stock price in a given period divided by the stock price at the beginning of the period<\/dd>\r\n<\/dl>\r\n
\r\n \t
total returns<\/dt>\r\n \t
the sum of all cash flows received from an investment; includes periodic cash flows plus price appreciation or price depreciation<\/dd>\r\n<\/dl>\r\n
\r\n \t
Treasury bills (T-bills)<\/dt>\r\n \t
short-term debt instruments issued by the federal government and maturing in a year or less<\/dd>\r\n<\/dl>\r\n
\r\n \t
Treasury bonds<\/dt>\r\n \t
government debt instruments with maturities of 20 or 30 years<\/dd>\r\n<\/dl>\r\n
\r\n \t
Treasury notes (T-notes)<\/dt>\r\n \t
government debt instruments with maturities of 2, 3, 5, 7, or 10 years<\/dd>\r\n<\/dl>\r\n \r\n\r\nAttribution:<\/strong>\r\n\r\nThis chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.\r\n\r\nhttps:\/\/openstax.org\/books\/principles-finance\/pages\/1-key-terms<\/a>\r\n\r\nAccess for free at https:\/\/openstax.org\/books\/principles-finance\/pages\/12-key-terms<\/a>","rendered":"
\n
\n<\/dt>\n
<\/dt>\n
bond returns<\/dt>\n
sums the periodic interest payments and the change in bond price in a given period and divides by the bond price at the beginning of the period<\/dd>\n<\/dl>\n
\n
commercial paper (CP)<\/dt>\n
a short-term, unsecured security issued by corporations and financial institutions to meet short-term financing needs such as inventory and receivables<\/dd>\n<\/dl>\n
\n
debenture<\/dt>\n
a common type of unsecured bond issued by a corporation<\/dd>\n<\/dl>\n
\n
indenture<\/dt>\n
legal term for a bond contract<\/dd>\n<\/dl>\n
\n
inflation<\/dt>\n
a general increase in prices and a reduction in purchasing power; expected rate is a key component of interest rates<\/dd>\n<\/dl>\n
\n
initial public offering (IPO)<\/dt>\n
the first time a firm offers stock to the public<\/dd>\n<\/dl>\n
\n
mortgage bond<\/dt>\n
bond issued by a corporation using a real asset, such as property or buildings, to guarantee it<\/dd>\n<\/dl>\n
\n
municipal bonds (munis)<\/dt>\n
bonds issued by a local government, territory, or agency; generally used to finance infrastructure projects<\/dd>\n<\/dl>\n
\n
negotiable certificates of deposit (NCDs)<\/dt>\n
large CDs issued by financial institutions; redeemable at maturity but can trade prior to maturity in a broad secondary market<\/dd>\n<\/dl>\n
\n
primary market<\/dt>\n
market for new securities<\/dd>\n<\/dl>\n
\n
seasoned equity offering (SEO)<\/dt>\n
a method used by new IPOs to raise capital by offering additional shares of stock to the public<\/dd>\n<\/dl>\n
\n
secondary market<\/dt>\n
market for used securities<\/dd>\n<\/dl>\n
\n
shelf registration<\/dt>\n
part of Securities and Exchange Commission (SEC) Rule 415; allows a company to register with the SEC to issue new shares but allows up to two years before issuing the shares<\/dd>\n<\/dl>\n
\n
special purpose acquisition companies (SPACs)<\/dt>\n
a special form of IPO<\/dd>\n<\/dl>\n
\n
stock returns<\/dt>\n
sums the periodic dividend payments plus the change in stock price in a given period divided by the stock price at the beginning of the period<\/dd>\n<\/dl>\n
\n
total returns<\/dt>\n
the sum of all cash flows received from an investment; includes periodic cash flows plus price appreciation or price depreciation<\/dd>\n<\/dl>\n
\n
Treasury bills (T-bills)<\/dt>\n
short-term debt instruments issued by the federal government and maturing in a year or less<\/dd>\n<\/dl>\n
\n
Treasury bonds<\/dt>\n
government debt instruments with maturities of 20 or 30 years<\/dd>\n<\/dl>\n
\n
Treasury notes (T-notes)<\/dt>\n
government debt instruments with maturities of 2, 3, 5, 7, or 10 years<\/dd>\n<\/dl>\n

 <\/p>\n

Attribution:<\/strong><\/p>\n

This chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.<\/p>\n

https:\/\/openstax.org\/books\/principles-finance\/pages\/1-key-terms<\/a><\/p>\n

Access for free at https:\/\/openstax.org\/books\/principles-finance\/pages\/12-key-terms<\/a><\/p>\n","protected":false},"author":101,"menu_order":1,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-695","chapter","type-chapter","status-publish","hentry"],"part":44,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/users\/101"}],"version-history":[{"count":4,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/695\/revisions"}],"predecessor-version":[{"id":1291,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/695\/revisions\/1291"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/parts\/44"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/695\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/media?parent=695"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapter-type?post=695"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/contributor?post=695"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/license?post=695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}