10/30/25, 4:44 PM JMU COB 300 Finance Exam 1 Flashcards | Quizlet
Social Science Economics Finance
JMU COB 300 Finance Exam 1
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Save
Students also studied
Bond Pricing, Yields, and Market Val... Mighty Ninety part 2 Financial Accounting Theory Final ACCY 3
182 terms 42 terms 22 terms 115 terms
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Practice questions for this set
Learn 1 /7 Study with Learn
debt instruments or securities with maturities of one year or less (short-term debt)
Choose an answer
1 Finance vs. Accounting 2 Long-term Debt Obligations
3 Money Market Securities 4 Financial Security
Don't know?
Terms in this set (128)
Accounting:
Tracks what happened to firm's money in the past
Finance vs. Accounting
Financial Management:
Combines historical figures and current information
Determines what should happen with firm's money now and in the future
https://quizlet.com/771266765/jmu-cob-300-finance-exam-1-flash-cards/ 1/7
, 10/30/25, 4:44 PM JMU COB 300 Finance Exam 1 Flashcards | Quizlet
1. How much money do we need to operate a business?
3 main questions for allocation of funds 2. Where did we get our funds from and what form are our funds in?
3. What do we do with the funds once they are acquired?
Savers: the investors, individuals, institutions, pensions, and mutual funds that are
Savers vs Borrowers investing their funds
Borrowers: the ones seeking funds, corporations, businesses, the government, etc.
any legal agreement that represents an ownership interest, a debt, obligation, or
Financial Instrument
other claim on asserts or income
Financial Security a negotiable financial instrument that is evidence of indebtedness or ownership
Anything that says I am borrowing money from the bank, and you get the loan and
Debt Obligations
an interest rate
- Common stock (equity), money in form of ownership
Equity Interests
- Internally generated equity is kept by the business
(1) Preferred stock
Hybrid Securities
(2) Convertible bonds
- Short Term: short term debt has a maturity or due date within a year
Debt Obligations (short vs long-term)
- Long Term: maturity that is greater than a year (known as long term capital)
Financial Capital the funds a firm uses to acquire its assets and finance its operations (debt obligation)
backs the debt, something of value you are using to guarantee the borrower that
Collateral
you can pay them back
Debenture a non-collateralized debt
Long-term Debt Obligations Bonds, Notes Payable, etc.
Money Market Securities debt instruments or securities with maturities of one year or less (short-term debt)
facilitate the sale of long-term securities by deficit units to surplus units (maturity > 1
Capital Market Securities
year)
Why is all stock/equity considered capital because you don't have to pay them back
assets
- More firms use debt than equity to run their business (3x more common than
equity)
Debt Market - A majority of companies gain investors from debt, not using equity
- Cheaper because you don't have to issue stock or other forms of equity and just
pay it off
- Vast majority of this is common stock, but also consists of preferred stock
Equity
- Different stocks have different voting rights in corps
Primary: The firm actually gets the funds (IPOs)
Equity Markets
Secondary: existing shares of stock are bought and sold by investors
- Companies get nothing from these exchanges because the stock has already been
bought from the company, and is now being bought and sold from other investors
Secondary Equity
- Goal is to increase the value of the company's stock (people keep investing, stock
value goes up, and firm value goes up)
NYSE - listed
Listed vs. over-the-counter securities
NASDAQ - over the counter
Market Capitalization (Market Cap) Market Cap = # of shares outstanding * Market Price
https://quizlet.com/771266765/jmu-cob-300-finance-exam-1-flash-cards/ 2/7
Social Science Economics Finance
JMU COB 300 Finance Exam 1
Leave the first rating
Save
Students also studied
Bond Pricing, Yields, and Market Val... Mighty Ninety part 2 Financial Accounting Theory Final ACCY 3
182 terms 42 terms 22 terms 115 terms
amazingSunwhite Preview pfs011 Preview wonderfuladnama Preview leea
Practice questions for this set
Learn 1 /7 Study with Learn
debt instruments or securities with maturities of one year or less (short-term debt)
Choose an answer
1 Finance vs. Accounting 2 Long-term Debt Obligations
3 Money Market Securities 4 Financial Security
Don't know?
Terms in this set (128)
Accounting:
Tracks what happened to firm's money in the past
Finance vs. Accounting
Financial Management:
Combines historical figures and current information
Determines what should happen with firm's money now and in the future
https://quizlet.com/771266765/jmu-cob-300-finance-exam-1-flash-cards/ 1/7
, 10/30/25, 4:44 PM JMU COB 300 Finance Exam 1 Flashcards | Quizlet
1. How much money do we need to operate a business?
3 main questions for allocation of funds 2. Where did we get our funds from and what form are our funds in?
3. What do we do with the funds once they are acquired?
Savers: the investors, individuals, institutions, pensions, and mutual funds that are
Savers vs Borrowers investing their funds
Borrowers: the ones seeking funds, corporations, businesses, the government, etc.
any legal agreement that represents an ownership interest, a debt, obligation, or
Financial Instrument
other claim on asserts or income
Financial Security a negotiable financial instrument that is evidence of indebtedness or ownership
Anything that says I am borrowing money from the bank, and you get the loan and
Debt Obligations
an interest rate
- Common stock (equity), money in form of ownership
Equity Interests
- Internally generated equity is kept by the business
(1) Preferred stock
Hybrid Securities
(2) Convertible bonds
- Short Term: short term debt has a maturity or due date within a year
Debt Obligations (short vs long-term)
- Long Term: maturity that is greater than a year (known as long term capital)
Financial Capital the funds a firm uses to acquire its assets and finance its operations (debt obligation)
backs the debt, something of value you are using to guarantee the borrower that
Collateral
you can pay them back
Debenture a non-collateralized debt
Long-term Debt Obligations Bonds, Notes Payable, etc.
Money Market Securities debt instruments or securities with maturities of one year or less (short-term debt)
facilitate the sale of long-term securities by deficit units to surplus units (maturity > 1
Capital Market Securities
year)
Why is all stock/equity considered capital because you don't have to pay them back
assets
- More firms use debt than equity to run their business (3x more common than
equity)
Debt Market - A majority of companies gain investors from debt, not using equity
- Cheaper because you don't have to issue stock or other forms of equity and just
pay it off
- Vast majority of this is common stock, but also consists of preferred stock
Equity
- Different stocks have different voting rights in corps
Primary: The firm actually gets the funds (IPOs)
Equity Markets
Secondary: existing shares of stock are bought and sold by investors
- Companies get nothing from these exchanges because the stock has already been
bought from the company, and is now being bought and sold from other investors
Secondary Equity
- Goal is to increase the value of the company's stock (people keep investing, stock
value goes up, and firm value goes up)
NYSE - listed
Listed vs. over-the-counter securities
NASDAQ - over the counter
Market Capitalization (Market Cap) Market Cap = # of shares outstanding * Market Price
https://quizlet.com/771266765/jmu-cob-300-finance-exam-1-flash-cards/ 2/7
