University of Phoenix Material
University of Phoenix Material
Definitions
Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines.
Term
Definition
Resource you used
Time value of money
Money has a Time Value. This basic idea a dollar received today, other things being the same, is worth more than a dollar received a year from now underlies many financial decisions faced in
Business (TItman, Keown, & Martin, 2014, P. 172).
TItman, S., Keown, A., & Martin, J. (2014). Financial Management: Principles and Applications (12th ed.). : Prentice Hall
Efficient market
A market in which prices quickly respond to the announcement of new information. Efficient markets describes the extent to which information is incorporated into security prices. In an efficient market, security prices reflect all available information at all times; and, because of this, it is impossible for an investor to consistently earn high rates of return without taking substantial risk (TItman, Keown, & Martin, 2014, P.210).
TItman, S., Keown, A., & Martin, J. (2014). Financial Management: Principles and Applications (12th ed.). : Prentice Hall
Primary versus secondary market
A primary market is 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.
The 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, 2014, P.25).
TItman, S., Keown, A., & Martin,
Definitions
Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines.
Term
Definition
Resource you used
Time value of money
Money has a Time Value. This basic idea a dollar received today, other things being the same, is worth more than a dollar received a year from now underlies many financial decisions faced in
Business (TItman, Keown, & Martin, 2014, P. 172).
TItman, S., Keown, A., & Martin, J. (2014). Financial Management: Principles and Applications (12th ed.). : Prentice Hall
Efficient market
A market in which prices quickly respond to the announcement of new information. Efficient markets describes the extent to which information is incorporated into security prices. In an efficient market, security prices reflect all available information at all times; and, because of this, it is impossible for an investor to consistently earn high rates of return without taking substantial risk (TItman, Keown, & Martin, 2014, P.210).
TItman, S., Keown, A., & Martin, J. (2014). Financial Management: Principles and Applications (12th ed.). : Prentice Hall
Primary versus secondary market
A primary market is 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.
The 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, 2014, P.25).
TItman, S., Keown, A., & Martin,