Financial Term and Roles
Financial Terms and Roles Definitions Essay Individual Assignment
University of Phoenix
FIN/370
Finance: is dealing with the study of how people and businesses assess assets, investments and managing account information.
Efficient Market: A mechanism that allows people to easily buys and sell financial claims.
Primary Market: s a market in which new, as opposed to previously issued, securities are bought and sold for the first time. In this market, firms issue new securities to raise money that they can then use to help finance their businesses. The key feature of the primary market is that the firms selling securities actually receive the money raised (Titman, Keown, & Martin, 2011,pg.24).
Secondary market: is where all subsequent trading of previously issued securities takes place. In this market the issuing firm does not receive any new financing, as the securities it has sold are simply being transferred from one investor to another. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public is liquidity” (Titman, Keown, & Martin, 2011,pg.26).
Risk:
Security: he securities markets allow businesses and individual investors to trade the securities issued by public corporations. Public corporations are those whose debt and equity are traded in public markets. Securities markets are typically discussed in terms of the primary and secondary markets (Titman, Keown, & Martin, 2011,pg.31).
Stock: In the stock market people and business can make investments. When the businesses are making profits it is good for the stock market but when businesses are losing money it can affect the stock market resulting in losing money.
Bond: Savings bonds can be bought and value is earned once the bond has reached a certain maturity (the length of time until the debt is due) some bonds can take up to ten years to earn some maturity value.
Capital: The capital market refers to the
University of Phoenix
FIN/370
Finance: is dealing with the study of how people and businesses assess assets, investments and managing account information.
Efficient Market: A mechanism that allows people to easily buys and sell financial claims.
Primary Market: s a market in which new, as opposed to previously issued, securities are bought and sold for the first time. In this market, firms issue new securities to raise money that they can then use to help finance their businesses. The key feature of the primary market is that the firms selling securities actually receive the money raised (Titman, Keown, & Martin, 2011,pg.24).
Secondary market: is where all subsequent trading of previously issued securities takes place. In this market the issuing firm does not receive any new financing, as the securities it has sold are simply being transferred from one investor to another. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public is liquidity” (Titman, Keown, & Martin, 2011,pg.26).
Risk:
Security: he securities markets allow businesses and individual investors to trade the securities issued by public corporations. Public corporations are those whose debt and equity are traded in public markets. Securities markets are typically discussed in terms of the primary and secondary markets (Titman, Keown, & Martin, 2011,pg.31).
Stock: In the stock market people and business can make investments. When the businesses are making profits it is good for the stock market but when businesses are losing money it can affect the stock market resulting in losing money.
Bond: Savings bonds can be bought and value is earned once the bond has reached a certain maturity (the length of time until the debt is due) some bonds can take up to ten years to earn some maturity value.
Capital: The capital market refers to the
References: Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western. Titman, S., Keown, A. J., & Martin, J. D. (2011). Financial management: Principles and applications (11th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.