Defining Financial Terms

Defining Financial Terms
FIN/370

1. Finance- The study of how people and businesses pass judgment investments and raise capital to fund them
2. Efficient Market- A market whose prices quickly respond to the announcement of new information.
3. Primary Market- A part of the financial market where new security issues ar initially bought and sold
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) will lose value
6. Security- A negotiable pawn that represents a financial claim that has value. Securities are broadly classifies as debt securities (bonds) and equity 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, promising to pay the owner of the security a predetermined amount of interest apiece year
9. Capital-Money invested in a firm
10.



Debt Money that has been borrowed and must be repaid. 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 between 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 assets
14. Cash flow- A financial statement that reports bullion received and cash spent by the firm everyplace a period of time, usually one quarter of a year or a full yearIf you want to explicate a full essay, order it on our website: Ordercustompaper.com



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