Fin 370 Week 1 Financial Terms

Finance: The system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities (Merriam-Webster). Finance pertains to the channeling of bills in the form of credit, loans, or invested capital to economic entities that rear put the funds to use in a productive manner. * Efficient grocery store: An efficient foodstuff is a backing given to the stock mart when all randomness germane(predicate) to the discounted present value of stocks is freely available to all participants in the market, and immediately incorporated into participants buying and selling plans. (Brittanica) * * Primary market: The market for new securities issued, purchased directly from the issuer. * * * Secondary market: The market where an investor purchases a security from another investor. * * * Risk: The possibility of loss, injury, disadvantage, or destructio n. The product of the amount that may be lost and hazard of losing it. (Merriam-Webster) * * All investments including stocks carry a risk; there is no guarantee of return. In pay distinguishable stocks carry diametrical risks.

For instance a fast, high return stock normally carries a higher risk of losing money as compared with a solid, proven stock that pays a lower return on investment. * * Security: Freedom from uncertainty or doubt. 2. One issued to investors to finance a business enterprise. (Merriam-Webster) * Stock: The debt or fund collectable from a government or a private federation or corporation to individuals for money loaned at interest; a security representing such a! debt or fund. (Merriam-Webster) * Bond: An interest-bearing document giving evidence of a long-term debt and issued by a government body or corporation sometimes secured by a lien on property and a good deal designed to take care of a particular monetary need. (Merriam-Webster) * Capital: Capital is not money, barely means of...If you indispensability to get a full essay, parade it on our website: OrderEssay.net

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