Stocks – a form of equity financing or raising money by Mortgage- a loan, secured by a collateral, that the

allowing investors to be part owners of the company. borrower is obliged to pay at specified terms.

- higher risk but with possibility of higher returns. Chattel Mortgage – mortgage on a movable property

- share in the ownership of a company Collateral- assets used to secure the loan

Dividend - share in the company’s profit
Dividend per share – ratio of the dividends to the
number of shares
Market Value – the current price of stock at which it
can be sold
Outstanding Balance - any remaining debt at a
specified time.
Proposition - is a declarative sentence that is either
true or false, but not both.
Tautology – a proposition that is always true

Par value – the per share amount as stated on the Contradiction – proposition that is always false
company certificate.

Bonds – a form of debt financing, or raising money by

borrowing from investors Formula:

-Lower risk but lower yield Dividend per share:

Coupon- periodic interest payment that the bondholder Total dividend/ total shares
receives during the time between purchase date and
Dividend:
maturity date; usually received semi-annually
Dividend percentage x Par value x number of shares
Coupon Rate- the rate per coupon payment period

Price of a Bond- the price of a bond at purchase time Stock yield ratio:

Par value or Face value- the amount payable on the Dividend per share/ Market value
maturity date
Amount of semi-annual coupon:
Term of a bond- present value of all cash inflows to
Face value x coupon rate / ½
the bondholder.

Val – value of the index Mortgage:

Business loan- money lent specifically for a business F= P(1 + j)n

purpose. it may be used to start a business or to have a
business expansion

Consumer loan – money lent to an individual for

personal or family purpose

Collateral- assets used to secure the loan. It may be

real-estate or other investments

Term of the loan - time to pay the entire loan

Amortization Method – method of paying a loan on

instalment, basis, usually of equal amounts at regular
intervals