Define each of the following terms:
a. Sole proprietorship; partnership; corporation
b. Limited partnership; limited liability partnership; Professional Corporation
c. Stockholder wealth maximization
d. Money market; capital market; primary market; secondary market
e. Private markets; public markets; derivatives
f. Investment banker; financial service corporation; financial intermediary
g. Mutual fund; money market fund
h. Physical location exchanges; computer/telephone network
i. Open outcry auction; market; electronic communications network (ECN)
j. Production opportunities; time preferences for consumption
k. Real risk-free rate of interest, r*; nominal risk-free rate of interest, rRF
l. Inflation premium (IP); default risk premium (DRP); liquidity; liquidity premium (LP)
m. Interest rate risk; risk premium (MRP); reinvestment rate risk
n. Term structure of interest rates; yield curve
o. “Normal” yield curve; inverted (“abnormal”) yield curve
p. Expectations theory
q. Foreign trade deficit
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