Financial Terms

Essay by jrisherCollege, UndergraduateA, November 2008

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A. Finance - The management of money and other assets; The science of management of money and other assets; In plural (finances), the monetary resources, especially those of a public entity or a company; To provide or obtain funding for a transaction or undertaking. (WordNet, 2006)B. Efficient Market- A market in which the values of securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same. (Keown, A. J., Martin, J. D., Petty, J., & Scott, D. F., Jr., 2005)C. Primary Market - Transactions in securities offered for the first time to potential investors. (Keown, A. J., Martin, J. D., Petty, J., & Scott, D. F., Jr., 2005)D. Secondary Market - The market in which stock previously issued by the firm trades. (Keown, A. J., Martin, J. D., Petty, J., & Scott, D. F., Jr.,

2005)E. Risk - The likely variability associated with expected revenues or income streams. (Keown, A. J., Martin, J. D., Petty, J., & Scott, D. F., Jr., 2005)F. Security - a formal declaration that documents a fact of relevance to finance and investment; the holder has a right to receive interest or dividends. (WordNet, 2006)G. Stock - the capital raised by a corporation through the issue of shares entitling holders to an ownership interest. (WordNet, 2006)H. Bond - A type of debt or long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. (Keown, A. J., Martin, J. D., Petty, J., & Scott, D. F., Jr., 2005)I. Capital - wealth in the form of money or property owned by a person or business and human resources of economic value. (WordNet, 2006)J. Debt - the...