Fin 370 Definitions
Definitions
Steven Puryear
Fin 370
10-6-2011
Mrs. Watson
Definitions
1. Finance- The science of funds management.
2. Efficient Market- A market in which the values of all assets and securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same.
3. Primary Market- A market in which new, as opposed to previously issued, securities are traded. The primary market provides the channel for sale of new securities.
4. Secondary Market- The market in which stock previously issued by the firm trades. Secondary market connects investors' favoritism for liquidity with the capital users' wish of using their capital for a longer period.
5. Risk- The likely variability associated with expected revenue or income streams. Risk plays a large role in finance; nearly every financial transaction carries some amount of risk.
6 Security- a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends
7. Stock- The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity). It determines the economic health of the country and has a pivotal role in mobilizing resources for development of capital market.
8. Bond- A type of debt or a long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. The bond market provides local, state and federal governments, and private enterprises the funds needed to get development and long-term infrastructure projects off the ground.
9 Capital- Wealth in the form of money or property owned by a person or business and human resources of economic value. Without capital, then there is no need for funds management.
10 Debt- Consists of such sources as credit extended by suppliers or a loan from a bank. Debt helps a company secure
Steven Puryear
Fin 370
10-6-2011
Mrs. Watson
Definitions
1. Finance- The science of funds management.
2. Efficient Market- A market in which the values of all assets and securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same.
3. Primary Market- A market in which new, as opposed to previously issued, securities are traded. The primary market provides the channel for sale of new securities.
4. Secondary Market- The market in which stock previously issued by the firm trades. Secondary market connects investors' favoritism for liquidity with the capital users' wish of using their capital for a longer period.
5. Risk- The likely variability associated with expected revenue or income streams. Risk plays a large role in finance; nearly every financial transaction carries some amount of risk.
6 Security- a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends
7. Stock- The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity). It determines the economic health of the country and has a pivotal role in mobilizing resources for development of capital market.
8. Bond- A type of debt or a long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. The bond market provides local, state and federal governments, and private enterprises the funds needed to get development and long-term infrastructure projects off the ground.
9 Capital- Wealth in the form of money or property owned by a person or business and human resources of economic value. Without capital, then there is no need for funds management.
10 Debt- Consists of such sources as credit extended by suppliers or a loan from a bank. Debt helps a company secure