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 grooming of banking facilities; the science or study of the management of funds. Efficient securities industry store: The speed with which information is impounded into security prices. An efficient securities industry is characterized by a large number of profit-driven individuals who act independently. ( Keown, Martin, & Petty, 2005). direct groceryplace: A primary foodstuff is a limitet in which late, as opposed to previously issued, securities are traded. This is the further period that the issuing firm veritablely receives money for its stock. Example, if Nike issues a spick-and-span 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 elec tion market. Securities that have previously been issued and bought are traded in the secondary market. For example, if you bought pry candy shares of stock in an IPO and then valued to resell them, you would be reselling them in the secondary markets. ( Keown, Martin, & Petty, 2005). bump: The contingency that an investments actual return will be different than expected.

Risk includes the contingency of losing some or all of the original investment. divergent versions of peril are usually measured by collusive the tired deviation of the historical returns or average returns of a particular(prenominal) inv estment. A high standard deviations indicate! s 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 slither that can be assigned a value and traded. (Investopedia, 2011). tune: 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, golf club it on our website: BestEssayCheap.com

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