Financial Terms

Financial Terms and Roles 1. Finance Finance is the management of big(p) sums of m peerlessy by governments or large companies. Finance deals with matters associate to currency and the food food commercialises. Finance is concerned with resource parceling and acquisition. (investorwords.com) 2. economic Market an efficient merchandise is a commercialize whose prices quickly respond to the announcement of new(a) information. In finance you wish the market place to be an efficient one. An efficient market is one where the market price is an unbiased estimate of the square honor of the investment. (Financial Management. Principles and Applications, eleventh Edition) 3. Primary Market a direct market is a part of the financial market where new certificate releases are initially bought and sold. The primary market allows firms to turn on working capital through the sale of assets. It is also cognise as the issue market. (Financi al Management. Principles and Applications, Eleventh Edition) 4. Secondary Market a secondary winding market is a financial market where previously issued securities such as stocks and bonds are bought and sold. The secondary market is one in which the original buyers of the harvest-home resell the product to a third party. The secondary market is more informal. (Financial Management.

Principles and Applications, Eleventh Edition) 5. Risk A try is the possibility of loss; the incredulity that the anticipated return go out not be achieved. Risk is the basis for evaluating an investment. Risk is a basic imagination of finance. (Basic Finance. An Introduction to Fina ncial Institutions, Investments, and Managem! ent, Tenth Edition) 6. security A risk is a negotiable instrument that represents a financial carry that has value. Securities are broadly classified as debt securities (bonds) and equity securities (shares of communal stock). A security is a part of paper that proves will power of stocks, bonds, and other investments. (Financial Management. Principles and Applications,...If you want to get a full essay, outrank it on our website: OrderEssay.net

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