Defining Financial Terms

Defining Financial Terms FIN/370 1. Finance- The study of how hoi polloi and businesses pass judgment investments and raise capital to fund them 2. efficient Market- A market whose prices quickly respond to the announcement of crudefound information. 3. Primary Market- A part of the pecuniary market where new security issues ar initially bought and exchange 4. Secondary Market- The financial market where previously issues securities much(prenominal) as burgeon forths and baffles are bought and sold 5. Risk- The chance that an investment (as a stock or commodity) pass on lose value 6. Security- A negotiable pawn that represents a financial claim that has value. Securities are broadly classifies as debt securities (bonds) and right securities (shares of common stock) 7. Stock- An instrument that signifies an proprietorship position in a corporation 8. Bond- A long-term (10 years or more) promissory note issued by a borrower, pr omising to pay the proprietor of the security a predetermined amount of interest severally year 9. Capital-Money invested in a firm 10.

Debt Money that has been borrowed and essential be re give. This includes such(prenominal) things as bank loans and bonds 11. Yield- The percentage return paid on a stock in the form of dividends, or the useful rate of interest paid on a bond or note 12. Rate of return- The ratio amongst the pull inings and the approach of an investment 13. Return on investment (ROI)- A measure of the dinero income a firms management is able to earn with its total ass ets 14. Cash flow- A financial statemen! t that reports bullion received and cash pass by the firm everyplace a period of time, normally one quarter of a year or a full yearIf you want to explicate a full essay, enact it on our website: BestEssayCheap.com

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