Name: Domingo, Sarah Nicole P.

ABM-1 ACTIVITY-2
AHMS-1

Define the following:

1. Equity
 Equity essentially means ownership. Equity represents one's percentage of ownership
interest in each company. For startup investors, this means the percentage of the
company's shares that a startup is willing to sell to investors for a specific amount of money.

2. Debt financing
 Debt financing means you’re borrowing money from an outside source and promising to pay
it back with interest by a set date in the future.

3. Authorized capital stocks

 Authorized Capital Stock is the amount fixed in the Articles of Incorporation to be subscribed
and paid by the stockholders of the corporation. Paid-Up Capital the portion of the
authorized capital stock which has been subscribed and actually paid.

4. Issued stocks
 Issued stock is the shares of a company that have been distributed to investors. These are all
the shares representing the total ownership interest in a business.

5. Outstanding stocks
 Outstanding stock is shares issued by a corporation that are currently held by investors and
corporate insiders. The amount of outstanding stock is used to calculate earnings per share
and cash flow per share, which in turn are used by investors to derive the value of a
business.

6. Pure discount loan

 Pure Discount Loans are the simplest form of loan. The borrower receives money today and
repays a single lump sum (principal and interest) at a future time.

7. Interest-only loan
 Interest-Only Loans require an interest payment each period, with full principal due at
maturity. An interest-only loan is a loan in which the borrower pays only the interest for
some or all the term, with the principal balance unchanged during the interest-only period.

8. Trade credit market

 Trade credit market means is an arrangement to buy goods and/or services on account
without making immediate cash or cheque payments. When a business enters a trade credit
arrangement with its suppliers, a limit is usually set, commonly called credit terms.
9. Customer loan market
 A consumer loan is any type of loan where a person borrows money from a lender. There
are various types of consumer loans that are both secured and unsecured. Each loan comes
with different terms and interest rates, and they're usually used for a specific purpose.
Personal loans. Student loans.

10. Receivable’s sales market

 Key Takeaways. Companies that allow customers to purchase goods or services on credit will
have receivables on their balance sheet. Receivables are recorded at the time of a sale when
a good or service has been delivered but not yet been paid for. Receivables will decrease
when payment from customers is received.