Defining Financial Terms

Create a list of definitions of the following terms and part their roles in finance: Finance is the study of how people and businesses regard investments and raise capital to fund them (Titman, Keown, & Martin, 2011, pp. 732-739). Efficient merchandise is a marketplace place whose prices quickly respond to the announcement of new familiarity (Titman, Keown, & Martin, 2011, pp. 732-739).. Primary market is a part of the financial market where new security issues argon initially bought and sold (Titman, Keown, & Martin, 2011, pp. 732-739). substitute(prenominal) market is the financial market where previously issued securities such as stocks and bonds are bought and sold (Titman, Keown, & Martin, 2011, pp. 732-739). pretend is the possibility that the actual dispel on investment differing from the exected return on investment (Farlex, 2012). Risk is a very impo rtant concept in finance. warrantor is a negotiable instrument that represents a financial use up that has value. Securities are broadly classified as debt securities (bonds) and equity securities (shares of vulgar stock) (Titman, Keown, & Martin, 2011, pp. 732-739). Stock is an instrument that signifies an ownership position in a corporation (Titman, Keown, & Martin, 2011, pp.

732-739). Bond is a long-term (10- yr or more) promissory note issued by a borrower promising to ante up the owner of the security predetermined amount of interest sev erally year (Titman, Keown, & Martin, 2011, ! pp. 732-739). Capital is money that is used to generate income or see an investment such as expanding companies (Farlex, 2012). Debt is money that has been borrowed and must(prenominal) be repaid. This includes such things as bank loans and bonds (Titman, Keown, & Martin, 2011, pp. 732-739). Yield is income that is recieved from an investment. These are cipher as coupons or...If you want to get a safe essay, vagabond it on our website: BestEssayCheap.com

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