Bus355 FINAL REVIEW - Bus355 FINAL REVIEW Activity ratios...

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Bus355 FINAL REVIEW Activity ratios – financial ratios that are used to measure how well a firm is managing its assets. Pg. 290 Balance sheet – assets, liabilities, and shareholders’ equity at a single point in time. Pg. 284 Bar chart – the simplest kind of chart, on which share price is plotted on the vertical axis and time on the horizontal axis; stock prices are recorded as vertical bars showing high, low, and closing prices. Pg. 367 Behavioral finance – the body of research into the role that emotions and other subjective factors play in investment decisions. Pg. 380 Bond ladders – an investment strategy wherein equal amounts of money are invested in a series of bonds with staggered maturities. Pg. 472 Bond swap – an investment strategy wherein an investor simultaneously liquidates one bond holding and buys a different issue to take its place. Pg. 474 Bond-equivalent yield – the annual yield on a bond, calculated as twice the semiannual yield. Pg. 459 Business cycle – indication of the current state of the economy. Pg. 274 Charting – the activity of charting price behavior and other market information and then using the patterns these charts form to make investment decisions. Pg. 367 Common stock ratios – financial ratios that convert key information about a firm to a per-share basis. Pg. 296 Common-size income statement – a type of financial report that uses a common denominator to convert all entries on a normal income statement from dollars to percentages. Pg. 316 Confidence index – a ratio of the average yield on high-grade corporate bonds to the average yield on average or intermediate grade corporate bonds; a technical indicator based on the theory that market trends usually appear in the bond market before they do in the stock market. Pg. 360 Current yield – measure that indicates the amount of current income a bond provides relative to its market price. Pg. 456 Dividend valuation model – model that values a share of stock on the basis of the future dividend stream it is expected to produce; its three versions are zero-growth, constant growth, and variable growth. Pg. 328
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This note was uploaded on 05/19/2008 for the course BUS 355 taught by Professor Palermo during the Spring '08 term at SUNY Stony Brook.

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Bus355 FINAL REVIEW - Bus355 FINAL REVIEW Activity ratios...

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