Joselinne Sagastume #12 11th Accounting August 14, 2014
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Bonds Pictionary…………………………………………………………………………………………………………………………………………..4-9 Bonds………………………………………………………………………………………………………………………………………………………………..10 Different types of Funds…………………………………………………………………………………………………………………………….11 Stocks and Shares……………………………………………………………………………………………………………………………………….12 Takeover Pictionary…………………………………………………………………………………………………………………………………13-15 Takeover………………………………………………………………………………………………………………………………………………………….16 Buyout Example Corrections……..……………………………………………………………………………………………………………….17 Buyout Example………………………………………………………………………………………………………………………………………………18
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Word
Definition
Example
Cash Flows
The money a company receives minus the money it spends during certain period
Monitoring cash flow can also be useful for checking that funders are paying on time
Equity
Part ownership of a company in the form of stocks or shares
Tne supreme court has general jurisdiction in law and equity
Picture
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Initial Funds
Funds operated by investment companies that invest people’s money in various assets
Initial funds constitute an important part in most of the companies
Pension Funds
Funds that invest money that will be paid to people after they retire from work
Antonio receive his pension fund after he retire from the company
Principal
The amount of capital making up a bond or other loan
The bond’s principal is for a large amount
Maturity
The length of time which a bond is issued
When maturity comes the client has to pay
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Coupon
The amount of interest that a bond pays
Mariana receive a coupon
Bankrupt
Unable to pay debts
Bancafe goes on a bankrupt status
Creditors
People or institutions whom money is owed
Creditors must paid their owed money on time
Dividends
Payments by companies to their shareholders
Sometimes dividends are benefits to shareholders
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Market Makers
Businesses that buy Market makers may and sell securities bid by phone to the investor no later than 10am on Wednesday morning.
Bid
The price which a buyer is prepared to buy a security at a particular time
The bid was beneficial to the shareholders
Offer Price
The price which a seller is prepared to sell a security at a particular time
The offer price was profitable for the company
Yield
The rate of income an investor receives from a security
The investor was satisfied with the yield of the security
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Soared
Rose quickly
The interest soared in two months
To Kickstart
To revive or Amalia likes to stimulate something kickstart
Benchmark
A standard used when comparing other things
Benchmark is a method used in many companies of the United States
Recession
A period when the economy is contracting
The recession affect a lot of companies across the world
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Rally
An improvement or increase in prices
For companies rally is convenient
Defaulting
Falling to repay a loan
Jorge is constantly defaulting
To go Bust Busted
Another word of going brankrup
Futeca go Bust Busted
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When companies need to raise money to expand their operations they can issue new shares, or borrow money usually by issuing bonds. Basically a bond occurs when an investor agrees to loan money to a company or government in exchange for a predetermined interest rate for a predetermined length of time.
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Renewable Energy Fund • This fund invest in small companies that lead the global market in manufacturing equipment for generatig wind power and generating solar energy
High-yield US Fund • This fund looks for a high level of profits, invest in debts securities in various currencies issued by different goverments in four continents
Ethical Growth Fund • Its main objective is to achieve the highest possible capital growth while investing in ethically or socially responsible companies
Protection Fund • It's principal objective a steady inflationprotected return in euros, it invest its net,assets worldwide
Emerging Markets Fund • This fund main object is to achieve high and steady profits taking into account the security of capital
Luxury Good Fund • Invest in companies that produced highpriced prestigious branded luxury goods that count with stable demand
Global Microfinance Fund • Invest in all segments of the global microfinance market. They offer excellent possibilities for diversification
Dynamic International Fund • Its looks to achieve high and steady long-term earnings by investing in Eurobonds. Investments are made globally
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Stocks or Shares certificates representing part ownership of the company
Market Makers traders in stocks who quote bid (buying) and offer (selling) prices
Going Public Offering stocks for sale change the business from a private to a public company
IPO (Initial Public Companie) Selling stocks for the first time
Nominal Value of a Share The price written on it, the same as it market price
Stock markets are measured by stock indexes which show changes in the average prices of a selected group of stocks
Bull Market A period in which most stocks are rising
Bear Market Most of the stocks fall in value
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Word Diversified
Definition To become more varied or differen (e.g. by selling different products)
Example Picture Walmart is a clear example of a diversified store.
Retail Outlets
Places where goods are sold (shops, stores, kiosks, markets)
Gap is a retail outlet of clothes
Controlling Interest
A sufficient number of stocks in a company to be able to decide what to do (at an annual general marketing)
The most profitable method in companies is controlling interest because it gives more earnings
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Listed Companies
Public companies whose stocks are traded on a stock exchange
Fees
Amounts of When I money paid bought my for services t-shirt the cost includes fees
Conglomerat Companies e that own or control several smaller businesse selling very different products or services Synergy The combined power or value of a group of things working together which is greater than the total power
Listed companies are part of wall street
Procter and Gamble is a conglomerat e industry
Synergy should appear in al busineses
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Market Capitalizatio n
or value achieved when each is working separately The total value of a company on the stock exchange(th e price of all the stocks)
Subsidiaries
Companies that are owned by a larger parent company
Penssion Funds
A sum of money reserved to pay a company’s retired employees
Not all investors accept the market capitalizatio n, sometimes they negotiate it Subsidiares are founded in every market
Penssion funds are a benefit for retired employees
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Takeover Bid A public offer to a company's stockholders to buy their stocks at a certain price
Mergers To combine the two companies to form a single new one
Buyouts Occurs when financers that are corporate raiders or private equity funds consider that a series of takeovers has not acheive synergy but instead has become insufficient
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This is a clear example of a buyout because the previous company name was “Transactel powered by TELUS” The main reason was that TELUS a Canadian company was the owner of 50% of the company. But since May 28, 2014 Transactel powered by TELUS officially became just TELUS because they bought the other 50% of the stocks.
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