Defining Financial Terms

formation Financial Terms pay for blood account - FIN/370 Defining Financial Terms Finance: Finance is the management and creation of sparing wealth in which the end is maximizing sh atomic number 18owner wealth. Business managers make financial decisions cerebrate on increasing shareholders wealth. Some of these decisions are introducing new products, investing in new assets, borrowing money, egress stemmas or bonds, issuing faith to customers, and maintaining cash. Efficient Market: An high-octane market is a not bad(p) market in which exclusively information is current and the outlay of a lodges stock demonstrates the true revalue of the company. An efficient market has titanic numbers of profit-driven individuals acting independently. In an efficient market, businesses must centre on how their decisions depart repair stock price; because the stock price represents the companys value. Primary Market: The aboriginal market is the market i n which companies issue new securities. This is the solo time the company will receive money for the issued stock. afterward the company issues the stock, the same finical stock cannot be traded once again in the primary market. standby winding Market: The unoriginal market is the market in which antecedently issued stock is traded.

The open 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, run a risk is relate to investments and look to ed returns. Companies and individuals go! rmandize 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 exchange in the financial markets by companies to raise funds. The security is the picture 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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