FINMAR

You might also like

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

How do you call the protagonist job?

Gordon Gekko is a fictional character who appears in the popular 1987 oliver stone movie “Wall Street”
and its 2010 part ll or sequel ‘Wall Street:Money Never Sleeps’ The character

What is Speculation?
Speculation including the selling of a high-risk 
financial instrument in anticipation of large returns. 
The reason is to take full advantage of market volatility.
Description: In markets where the price fluctuations of shares are extremely regular and
unpredictable, speculators are prevalent.

What does the term ‘leverage’ mean?

When borrowing  to increase the asset base of  the company and achieve returns 


on risk capital, leverage come from using borrowed capital as a funding source. 
In order to maximize the potential return on an investment, leveraging is an investment
technique  of using borrowed money, specifically the use of different
financial instruments or borrowed capital. 
Leverage may also refer to the amount of 
Debt that a business uses for  asset financing.

Reference

https://newrepublic.com/article/77912/wall-street-money-never-sleeps-review
https://en.m.wikipedia.org/wiki/Wall_Street:_Money_Never_Sleeps
https://www.investopedia.com/terms/l/leverage.asp
https://en.m.wikipedia.org/wiki/Speculation

Explain how the repurchase works.


A short-term secured loan is a repurchase agreement (repo): one party sells securities 
to another and offers to repurchase those securities at a higher price later. 
The difference between the original price of the securities and their repurchase 
price is the interest charged, known as the repo rate, on the loan.

Explain what is commercial paper.


Commercial paper is a widely  used type of corporate issued unsecured, short-
term debt instrument, usuall  used for payroll funding
, payable accounts and inventories, and meeting other short-term liabilities.

Why is t-bills considered low risk?


They are backed by the U.S. government's full confidence, so their default risk is
generally considered nonexistent. Their payment rates are usually low relative to those
of corporate bonds or municipal bonds, since there is very little risk involved with these
securities.

Differentiate a note from a bond.


The primary distinction between payable notes and bonds arises
from the laws on securities.Bonds are often treated as securities and regulated, 
while notes payable are not generally considered securities.
Generally, the debt word is the easiest  way to decide whether a note or a bond is more
probable.

Reference
https://www.investopedia.com/terms/l/leverage.asp
https://www.investopedia.com/terms/c/commercialpaper.asp
https://www.fool.com/investing/how-to-invest/bonds/treasury-bonds/
https://www.fool.com/amp/knowledge-center/bond-vs-note-payable.aspx

You might also like