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 property and the food food commercialiseplaces. Finance is concerned with resource parceling and acquisition. (investorwords.com) 2. economic Market an efficient commercialise is a marketplace whose prices quickly respond to the announcement of parvenue information. In finance you wish the market to be an efficient one. An efficient market is one where the market price is an unbiased estimate of the true(a) honor of the investment. (Financial Management. Principles and Applications, eleventh Edition) 3. Primary Market a base market is a part of the financial market where new certificate releases are initially bought and sold. The primary market allows firms to chide working capital through the sale of assets. It is also cognize as the issue market. (Financial 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 point of intersection resell the product to a third party. The secondary market is more informal. (Financial Management.

Principles and Applications, Eleventh Edition) 5. Risk A take chances is the possibility of loss; the question that the anticipated return go out not be achieved. Risk is the basis for evaluating an investment. Risk is a basic fancy of finance. (Basic Finance. An Introduction to Financial Institutions, Investments, and ! Management, Tenth Edition) 6. security A risk is a negotiable instrument that represents a financial exact that has value. Securities are broadly classified as debt securities (bonds) and equity securities (shares of mutual stock). A security is a part of paper that proves self-command of stocks, bonds, and other investments. (Financial Management. Principles and Applications,...If you want to get a full essay, set it on our website: OrderEssay.net

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