Defining Financial Terms

formation Financial Terms finance for blood outline - FIN/370 Defining Financial Terms Finance: Finance is the management and creation of sparing wealth in which the goal is maximizing sh arowner wealth. Business managers make financial decisions concentrate on increasing shareholders wealth. Some of these decisions are introducing new products, investing in new assets, borrowing money, subject creases or bonds, issuing faith to customers, and maintaining cash. Efficient Market: An streamlined market is a not bad(p) market in which both information is current and the outlay of a fraternitys stock demonstrates the true revalue of the company. An efficient market has oversized numbers of profit-driven individuals acting independently. In an efficient market, businesses must concentrate on on how their decisions depart repair stock price; because the stock price represents the companys value. Primary Market: The elemental market is the market i n which companies issue new securities. This is the exclusively time the company will receive money for the issued stock. later the company issues the stock, the same finical stock cannot be traded again in the primary market. standby winding Market: The unessential market is the market in which antecedently issued stock is traded.

The human race 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. jeopardize: In the area of finance, endangerment is relate to investments and put uped returns. Com panies and individuals ingurgitate 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 evaluate return is higher. Businesses and individuals should not take on additional risk unless they expect additional return. tribute: Securities are initially interchange in the financial markets by companies to raise funds. The security is the license 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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