Defining Financial Terms

Finance: According to Merriam-Webster 2011, finance is, the system that includes the circulation of money, the granting of credit, the making of investments, and the fix of banking facilities; the science or study of the management of funds. Efficient mart store: The speed with which information is impounded into security prices. An efficient physiognomyetplace place is characterized by a large number of profit-driven individuals who act independently. ( Keown, Martin, & Petty, 2005). master(a) marketplace: A primary market is a market in which late, as opposed to previously issued, securities are traded. This is the moreover period that the issuing firm veritablely receives money for its stock. Example, if Nike issues a untried batch of stock, this issue would be considered a primary market transaction. ( Keown, Martin, & Petty, 2005). Secondary Market: Once the newly issued stock is in the publics hands, it then begins trading in the alternating(a) market. Secu rities that have previously been issued and bought are traded in the secondary market. For example, if you bought hoist candy shares of stock in an IPO and then cute to resell them, you would be reselling them in the secondary markets. ( Keown, Martin, & Petty, 2005). run a risk: The feel that an investments actual return will be different than expected.

Risk includes the contingency of losing some or all of the original investment. varied versions of peril are usually measured by cipher the tired deviation of the historical returns or average returns of a particular(prenominal) investment. A high standard deviations indicates a high mark of risk. ! (Investopedia, 2011). Security: An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives). A security is essentially a abridge that can be assigned a value and traded. (Investopedia, 2011). strain: A type of security that signifies ownership in a corporation and represents a claim on part of the corporations assets and earnings. in that location are...If you want to get a full essay, enunciate it on our website: BestEssayCheap.com

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