Financial Algebra 20 April 2018

announcements Your take-home quiz is due by the end of the day today Who needs time to work on it? I will be proctoring again next week (Monday and Tuesday) I finally have the transition lists You all will be going to Mrs. Porth (431)

Key terms and vocabulary Bond Brokerage Commission Corporate bond Coupon payment Coupon rate Discount brokerage Diversification Dividend Face value Federal agency bond Full-service brokerage Initial public offering (IPO) Institutional investor Junk bond Maturity date* Municipal bond Mutual fund National Association of Security Dealers Automated Quotations (NASDAQ) New York Stock Exchange (NYSE) Primary market Publicly traded Secondary market Securities and Exchange Commission (SEC) Security Shareholder Treasury bonds

Stock exchanges Remember that stocks represent pieces of a person’s ownership in a company But sometimes you want to sell your pieces to make more money to use to make the company better Later, the shares may be bought and sold by many different investors Initial public offering (IPO): When a company chooses to “go public”, this is the first sale of stock This initial sale is when the company receives money (or shares) This occurs in the primary market (or the direct exchange from company to buyer) Secondary market