Peregrine Exam Review Day 1
Balance Sheet Analysis - ANS -Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - ANS -Sarbanes act was created in 2002 to protect shareholders
What are dividends? - ANS -a sum of money paid regularly by a company to its shareholders
out of its profits
_ can be allocated as fixed amount per share - ANS -Dividends
Dividends - ANS -can only be received one or more regular payment stream
Cash dividend - ANS -paid out of currency of the company
Are usually taxable
stock dividend - ANS -Paid out in form of stock
Property - ANS -paid out in form of asset
Interim - ANS -made before a companies annual general meeting and final financial statement
Common stock - ANS -allows owners to vote at shareholder meetings and receive dividends
preffered stock - ANS -stock that gives stockholders preference in earnings and other rights
Growth stock - ANS -earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - ANS -pays higher-than-average dividends compared to other stock issues
, Value stock - ANS -stock from a company which has a low market price considering historical
earning records and value of current assets
Blue Chip Stock - ANS -the stock of a large, well-established and financially sound company
that has operated for many years
Owners of bonds are - ANS -Debt holders, creditors and issuer
Bonds usually have - ANS -variable or fixed interest payments
Bonds are correlated with - ANS -inverse interest rates
T/F Bonds have maturity rates - ANS -T
Bonds must be - ANS -paid back in full or risk default
Which bond is issued by companies? - ANS -Corporate bonds
Companies issue these rather than bank loans - ANS -Corporate bonds
Corporate bonds - ANS -offer lower interest rates
municipal bonds are - ANS -issued by states and municipalities
T/F Municipal bonds are tax free coupon income - ANS -T
Government Bonds - ANS -Certificates sold by the government to raise money with the
guarantee that the purchaser will be paid back later (with interest)
Agency Bonds - ANS -bonds issued by US government agencies
Which coupon is given at discount to par value? - ANS -zero-coupon
zero coupon bond - ANS -generate a return when bond holder is paid in full face when bond
matures
convertible bonds - ANS -Bonds that can be converted into common stock at the bondholder's
option
callable bonds - ANS -bonds that the issuing company can redeem (buy back) at a stated dollar
amount prior to maturity
Puttable bonds - ANS -Are able to be sell back to company before it matures
Balance Sheet Analysis - ANS -Analysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - ANS -Sarbanes act was created in 2002 to protect shareholders
What are dividends? - ANS -a sum of money paid regularly by a company to its shareholders
out of its profits
_ can be allocated as fixed amount per share - ANS -Dividends
Dividends - ANS -can only be received one or more regular payment stream
Cash dividend - ANS -paid out of currency of the company
Are usually taxable
stock dividend - ANS -Paid out in form of stock
Property - ANS -paid out in form of asset
Interim - ANS -made before a companies annual general meeting and final financial statement
Common stock - ANS -allows owners to vote at shareholder meetings and receive dividends
preffered stock - ANS -stock that gives stockholders preference in earnings and other rights
Growth stock - ANS -earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - ANS -pays higher-than-average dividends compared to other stock issues
, Value stock - ANS -stock from a company which has a low market price considering historical
earning records and value of current assets
Blue Chip Stock - ANS -the stock of a large, well-established and financially sound company
that has operated for many years
Owners of bonds are - ANS -Debt holders, creditors and issuer
Bonds usually have - ANS -variable or fixed interest payments
Bonds are correlated with - ANS -inverse interest rates
T/F Bonds have maturity rates - ANS -T
Bonds must be - ANS -paid back in full or risk default
Which bond is issued by companies? - ANS -Corporate bonds
Companies issue these rather than bank loans - ANS -Corporate bonds
Corporate bonds - ANS -offer lower interest rates
municipal bonds are - ANS -issued by states and municipalities
T/F Municipal bonds are tax free coupon income - ANS -T
Government Bonds - ANS -Certificates sold by the government to raise money with the
guarantee that the purchaser will be paid back later (with interest)
Agency Bonds - ANS -bonds issued by US government agencies
Which coupon is given at discount to par value? - ANS -zero-coupon
zero coupon bond - ANS -generate a return when bond holder is paid in full face when bond
matures
convertible bonds - ANS -Bonds that can be converted into common stock at the bondholder's
option
callable bonds - ANS -bonds that the issuing company can redeem (buy back) at a stated dollar
amount prior to maturity
Puttable bonds - ANS -Are able to be sell back to company before it matures
