Common Stock

Primary Market

Initial Public Offering (IPO)

Define Seasoned Issue

Define Secondary Market

Define: Price Earnings Ratio

Define Dividend

Define Retained Earnings

Define Book Value

Liquidation Value

Market Value Balance Sheet

Difference between firms actual market value and its liquidation/book value

Define Expected Return

Formula for Dividend Yield

Formula for Capital Gains Yield

Define the Dividend Discount Model

Zero Growth Case

Constant Growth Case

Expected Rate of Return from the DDM formula

What is the Plowback ratio

Define Payout Ratio

Formula for Growth Rate

How to Calculate: Present Value of Growth Opportunities

Define: Sustainable Growth Rate

How do you calculate Price-Earning Ratio

What is Technical Analysis

Random Walk

Fundamental Analysis

What is an efficient market

Weak Form Efficiency is a market where prices rapidly reflect all information contained in the history of past prices and volume
T/F

Define Semi-Strong Form Efficiency

Strong Form Efficiency is a market where prices reflect no information that could be used to determine true value of assets
T/F

What is a market anomalies

New Issues Puzzle

Behavioural Finance: Investors are 100% rational all the time.