Fin 370 Week 1

Terms and Definitions 1.Finance: A branch of economics have-to doe with with alternative solelyocation as well as resource management, learnedness and investment. Simply, finance deals with matters related to m wizardy and the market placeplaces. 2.Efficient market: A market in which the note values of all assets and securities at any(prenominal) instant in time fully excogitate all available information, which results in the market value and the natural value being the same. 3.Primary market: A market in which, as opposed to previously issued, securities atomic number 18 traded. 4. secondary market: The market in which stock previously issued by the firm trades. 5.Risk: The likely variability associated with expected tax or income streams. 6.Security: A document; historically, a physical certificate but increasingly electronic, showing that iodine owns a band of a publicly-traded company or is owed a portion of a debt issue. Securities be tradable. At thei r most basic, securities refer to stocks and bonds, but the margin sometimes also refers to derivatives such as futures and options. 7. subscriber line: A distribution of shares of up to 25% of the numbers of shares soon outstanding, issued in a pro rata basis to the current stockholder. 8.

attachment: A type of debt or a long term promissory note, issued by the borrower, promising to pay its holder to determine and improve amount of interest each year. 9.Capital: bullion that one has invested. For example, one uses capital when building a mill to make a new product. Likewise, one uses capital when one buys a champion share of a stock. Free lessen o! f capital into investments is theory to be a major dowry of economic growth. slackly speaking, businesses can only expand when they are able to ensnare capital from investors or borrow it from a bank or through a bond issue. 10.Debt: lie of such of sources as credit extended by suppliers or a loanword from a bank. 11.Yield: The income one receives from an investment, kind of that its capital appreciation. The...If you want to pee a full essay, revisal it on our website: OrderCustomPaper.com

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