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 ready of banking facilities; the science or study of the management of funds. Efficient foodstuff store: The speed with which information is impounded into security prices. An efficient securities industryplace is characterized by a large number of profit-driven individuals who act independently. ( Keown, Martin, & Petty, 2005). primordial merchandiseplace: A primary lucreet is a market in which late, as opposed to previously issued, securities are traded. This is the but period that the issuing firm veritablely receives money for its stock. Example, if Nike issues a impertinently 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 substitute(a) market. Securities that have previously been issued and bought are traded in the secondary market. For example, if you bought snoot candy shares of stock in an IPO and then wanted to resell them, you would be reselling them in the secondary markets. ( Keown, Martin, & Petty, 2005). risk of infection: The discover that an investments actual return will be different than expected.

Risk includes the contingency of losing some or all of the original investment. different versions of peril are usually measured by conniving the tired deviation of the historical returns or average returns of a particular(prenomi nal) 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 sheer that can be assigned a value and traded. (Investopedia, 2011). mental 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, regularize it on our website: BestEssayCheap.com

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