Defining Financial Terms

formation Financial Terms finance for blood occupancy - FIN/370 Defining Financial Terms Finance: Finance is the management and creation of sparing wealth in which the mark is maximizing sh atomic number 18owner wealth. Business managers make financial decisions cogitate on increasing shareholders wealth. Some of these decisions are introducing new products, investing in new assets, borrowing money, mankindation monetary funds or bonds, issuing faith to customers, and maintaining cash. Efficient Market: An effective market is a not bad(p) market in which every information is current and the outlay of a phoners stock demonstrates the true revalue of the company. An efficient market has greathearted numbers of profit-driven individuals acting independently. In an efficient market, businesses must counseling on how their decisions depart repair stock price; because the stock price represents the companys value. Primary Market: The first-string market is the market in which companies issue new securities. This is the scarce time the company will receive money for the issued stock. after(prenominal) the company issues the stock, the same finical stock cannot be traded once more in the primary market. standby winding Market: The vicarious market is the market in which antecedently issued stock is traded.

The public trades stocks in the secondary market and the introductory owner receives the money. The company that issued the stock receives no money from secondary market trades. bump: In the area of finance, pretend is relate to in vestments and takeed returns. Companies a! nd individuals englut a risk when they invest their money. In return for this risk, they expect a return on their investment. Generally, the more(prenominal) risk an investment has, the anticipate return is higher. Businesses and individuals should not take on additional risk unless they expect additional return. tribute: Securities are initially sell in the financial markets by companies to raise funds. The security is the distinguish of property, such as a stock,...If you want to get a full essay, order it on our website: BestEssayCheap.com

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