Across
- 4. note an unconditional written promise to pay to the lender a certain sum of money at a particular time, or on demand if certain adverse conditions arise.
- 10. credit obtained when a business buys goods and services that do not require immediate payment.
- 11. bond permits a bondholder to exchange bonds for a predetermined number of shares of common stock at a later date.
- 12. bank an organization that helps a business raise large sums of capital through the sales of stocks and bonds.
- 14. stock is ownership that gives holders the right to participate in managing the business through voting privileges plus the right to share in any profits through dividends.
- 16. value is the value of a share of stock that is calculated by dividing the corporation’s net worth (assets minus liabilities) by the total number of shares outstanding.
- 17. loan medium- or long-term financing used for operating funds or the purchase or improvement of fixed assets.
- 18. stock is stock that gives holders first claim on corporate dividends if a company earns a profit.
- 19. sometimes called security collateral, is something of value pledged as assurance of the fulfillment of an obligation.
- 20. a contract that allows the use of an asset for a fee paid on a schedule, such as monthly.
- 21. a long-term debt instrument sold by the business to investors.
- 22. debt capital borrowed for longer than a year.
Down
- 1. finance company provides capital to a business based on debts owed by customers.
- 2. debt a loan that must be repaid with interest within a year.
- 3. capital financing obtained from an investor or investment group that provides large sums of money to promising new or expanding small companies.
- 5. Earnings a business can hold some of its profits in reserve for use in the business through retained earnings. If the corporation distributes all of its profits as dividends to stockholders, it may later need to borrow money for operations and unforeseen events.
- 6. unsecured bonds.
- 7. a firm that specializes in lending money to businesses based on the business’s accounts receivable
- 8. public offering (IPO) the first time that a company sells stocks to the public.
- 9. option a right granted by a corporation that allows current stockholders to buy additional shares when issued at a fixed price for a specific period of time.
- 13. stock ownership plan (ESOP) a plan that allows employees to become owners of the company they work for through the incremental purchase of stock.
- 15. bond secured by specific long-term assets of the issuer.
- 20. of credit the authorization to borrow up to a maximum amount for a specified period of time