Financial Inatruments | Baamboozle - Baamboozle | The Most Fun Classroom Games!

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What is a Syndicated Loan?

A large loan provided by a group of lenders (banks) together to a single borrower

What is a bond's coupon rate?

The annual interest rate paid to the bondholder

Which financial instrument gives the RIGHT but NOT the obligation to buy or sell an asset?

An Option

In the event of bankruptcy, where do bondholders stand compared to shareholders?

Bondholders are paid before shareholders (they are creditors)

Which instrument allows a company to raise capital WITHOUT any obligation to pay interest?

Common Shares

Which short-term debt instrument is typically issued for up to 270 days by corporations?

Commercial Paper

Venture Capital typically invests in which stage of a company?

Early-stage (startup) and growth-stage companies

Who issues Treasury Bonds

The government (national/federal government)

What is a Convertible Bond?

A bond that can be converted into shares of the issuing company

What does IPO stand for

Initial Public Offering — the first time a company offers its shares to the public

What financial instrument gives its holder the right to receive dividends from a company's profits?

Equity shares

What happens during the process of Securitization?

Loans or assets are pooled together and converted into tradeable securities

How does Preferred Stock differ from Common Stock?

Preferred stockholders receive dividends first but usually have no voting rights

In a leasing arrangement, who is the "lessee"?

The party who rents/uses the asset