financial terms - Evan Burk FIN/370 4-6-2011 Defining...

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Evan Burk FIN/370 4-6-2011 Defining Financial Terms Define the following terms and identify their role in finance: Finance: Source through which you provide a resource. ie = Cash is the resource and where it comes from is the source. Efficient Market: A market in which the values of securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same. This reflects all information about a market price. Primary Market: Transactions in securities offered for the first time to potential investors. Issue prices are all the same for all buyers. Secondary Market: The market in which stock previously issued by the firm trades. The price in the market is normally different than the issue price. Risk: The likely variability associated with expected revenue or income streams. Also known as the chance of difference. Security: Stock which represents right of ownership and bond which represents debt agreement. Some securities are interest based while others are dividend based. Stock: Represents ownership in a business and a claim on part of the company’s assets and earnings.
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This note was uploaded on 04/16/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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financial terms - Evan Burk FIN/370 4-6-2011 Defining...

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