Defining Financial Terms

TermDefinition (2 points)Role in Finance (2 points) bank note: spelling and grammar is value 1 point. Finance Finance is a slew of political economy that is concerned with resource allocation as salutary as resource management, acquisition and authorizement (Investor Words, 2011).Finance deals with foodstuffs and specie of individuals and companies. Efficient market The efficacious market hypothesis is a opening that securities prices correctly mea sure the value of a companys future price and dividend.The imprtance of the efficient market is to make sure that one does not beat the market or that the chances atomic number 18 very small for a long period of time. olden market When securities atomic number 18 sold directly to sendors, this is called the primary market.Primary markets acrobatic supporter strengthen the delivery by providing the area for the sale of saucy securities. Secondary market The secondary market is what well-nigh people imag ine of when they think of the stock market. It is what the economy is reflected as when shown up or down on the news.The secondary market gives and investor an area for commerce his or her securities. It also gives a ethical snapshot of how the economy is doing at any given time. take a chance A seek is the acknowledgment that the judge return in an investment may not be what is originally expected to be reached.

Risk is weighty in finance as it gives investors a reason to invest in certain areas. If the risk is high, the rewards may be great. However, virtually investors would rather be in force(p) than sorry and will invest in low risk allo! wing money to grow all over time. auspices Security is an investment in a company or in government debt which can be traded on the monetary markets and which produces an income for the investor (Cambridge Dictionaries Online, 2011).Securities are made up of stocks and bonds; pieces of a company. This allows investors to own demote of a corporation helping the company develop. Stock Stocks represent a portion of a corporations...If you want to get a full essay, order it on our website: BestEssayCheap.com

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