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The amount the investor lends is less than the market value of the securities, a difference called the spread or haircut, to ensure that it still has sufficient collateral if the value of the securities should fall before the dealer repurchases them.

• Interbank Loans
• Time Deposits
• Government Agency Notes
• REPOS

Only companies with good credit ratings issue this because investors are reluctant to bring the debt of financially compromised companies.

• Banker's Acceptances
• Treasury Bills
• Commercial Paper
• Local Government Notes

This is a class of equity shares that has preference over ordinary (common) equity shares in the payment of dividends and in the distribution of corporate assets in the event of liquidation.

• Preferred shares
• Stocks
• Book value per share
• Far value

In the ____ the corporation has an investment bank that sells its shares to the public.

• Liquidation or salvage value.
• Pricing common stock
• Primary market
• Secondary market

A single investment bank obtains the exclusive right to originate, underwrite and distribute the new bonds through a one-on-one negotiation process

• Best Efforts Underwriting Basis
• Negotiated Sale
• corporate bonds
• Competitive sale

The _______ guarantees the firm a price for newly issued bonds by buying the whole issue at a fixed price (the bid price) from the bond-issuing firm at a discount from par.

• Trading process
• Investment bank
• corporate bonds
• Underwriter

These bonds allow the issuance of additional mortgage bonds using the same secured assets as security.

• Corporate bonds
• Secured long-term bonds
• Open-end mortgage bonds
• Limited Open-end Mortgage bonds

These are bonds payable or denominated in the borrower's currency but sold outside the borrower's country, usually by an international syndicate of investment bankers.

• Treasury Bonds
• Floating Rate or Variable Rate Bonds
• Junk or Low-Rated Bonds
• Eurobonds

A portion of a bond agreement that specifies what the borrower (the bond issuer) may or may not do during the life of the bond.

• Floating Rate or Variable Rate Bonds
• Junk or Low-Rated Bonds
• corporate bond
• Bond covenants

The _______ mechanisms bring these borrowers and investors together without the comparatively costly intermediation of banks.

• Bond markets
• Money markets
• financial markets
• Stock markets