FIN 370 Week 1 Individual Assignment - Defining Financial Terms

FIN 370 Week 1 Individual Assignment - Defining Financial Terms

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Defining Financial Terms 1 Running head: DEFINING FINANCIAL TERMS Defining Financial Terms University of Phoenix
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Defining Financial Terms 2 Defining Financial Terms a. Finance : “Financial management is concerned with the maintenance and creation of economic value or wealth” (Keown, Martin, Petty, & Scott, 2005, p. 4). Role in finance: Finance within a company is vital since it leads toward creating wealth. It helps make decisions such as when to introduce new products, when to invest in new assets, and when to borrow money. (Keown et al., 2005, p. 4). b. Efficient Market : “A market in which the values of all assets and securities at any instant in time fully reflect all available public information” (Keown et al., 2005, p. 16). Role in finance: To provide quick information with accurate and right prices. c. Primary Market : “Transactions in securities offered for the first time to potential investors” (Keown et al., 2005, p. 484). Role in finance: Provide a channel for sale of new securities. In addition, it also provides a variety of opportunities to those who issue securities such as corporations, or government, to raise resources to meet their requirements within their obligations. d. Secondary Market : “The market in which stock previously issued by the firm trades” (Keown et al., 2005, p. 11). Role in finance: To provide a place for investors/public an efficient place to trade
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This note was uploaded on 02/21/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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FIN 370 Week 1 Individual Assignment - Defining Financial Terms

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