Financial Investment Analysis

Allocation of an investment portfolio across broad asset classes

choice of specific securities within each asset class

Analysis of the value of securities

assets with higher expected returns entail greater risk

Buying and holding a diversified portfolio without attempting to identify mispriced securities

Attempting to identify mispriced securities or to forecast broad market trends

institution that "connect" borrowers and lenders by accepting funds from lenders ab loaning funds to borrowers

firms managing funds for investors. An investment company may manage several mutual funds

Firms specializing in the sale of new seurities to the public, typically by underwriting the issues

am market in which new issues of securities are offered to the public

previously issued securities are traded among investors

money invested to finance a new firm

Investments in companies that are not traded on a stock exchange

Pooling loans into standardized securities backed by those loans which can then be traded like any other security

risk of breakdown in the financial system, particularly due to spillover effects from one market into others.

include short-term, highly liquid, and relatively low-risk debt instruments

short-term givernment securities issued at a discount from face value and returning the face amount at maturity.

A bank time deposit

short-term unsecured debt issued by large corporations

An order to a ban by a customer to pay a sum of money at a future date.

dollar-denominated deposits at foreign banks or foreign branches of banks

short-term sales of government securities with an agreement to repurchase the securities at a higher price.

Funds in the accounts of commercial banks at the Federal Reserve Bank

Lending rate among banks in the London market

debt obligations of the federal government with original maturities of one year or more

Tax-exemt bonds issued by state and local governements

long-term debt issued by private corporations typically hpaying semiannual coupons and returning the face value of bonds at maturity

ownership shares in a publicly held corporation. Shareholders have voting rights and may receive dividends.

nonvoting shares in a corporation, usually paying a fxed stream of dividends

an average computed by adding the prices of the stocks and dividing by a "divisor".

index return equals the weighted average of the returns of each component security, with weights proportional to outstanding market value.

an index computed from simple average of returns

a security with a payoff that depends on the prices of other securities

The right to buy an asset at a specified price on or before a specified expiration date