Defining Financial Terms

formation Financial Terms pay for blood live agate line - FIN/370 Defining Financial Terms Finance: Finance is the management and creation of sparing wealth in which the intention is maximizing shargonowner wealth. Business managers make financial decisions sharpened on increasing shareholders wealth. Some of these decisions are introducing new products, investing in new assets, borrowing money, bare stocks or bonds, issuing faith to customers, and maintaining cash. Efficient Market: An effective market is a not bad(p) market in which every last(predicate) information is current and the outlay of a accompanys stock demonstrates the true revalue of the company. An efficient market has rangy numbers of profit-driven individuals acting independently. In an efficient market, businesses must focus on how their decisions depart repair stock price; because the stock price represents the companys value. Primary Market: The primary winding market is t he market in which companies issue new securities. This is the lone(prenominal) time the company will receive money for the issued stock. after(prenominal) the company issues the stock, the same finical stock cannot be traded again in the primary market. standby winding Market: The alternative market is the market in which antecedently issued stock is traded.

The existence 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. adventure: In the area of finance, encounter is relate to in vestments and take overed returns. Compan! ies and individuals bounteous 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 judge return is higher. Businesses and individuals should not take on additional risk unless they expect additional return. tribute: Securities are initially exchange 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: OrderCustomPaper.com

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