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Ba (2) - Finance-study of how individuals institutions...

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Unformatted text preview: Finance-study of how individuals, institutions, governments, and businesses acquire, spend, and manage financial resources lnvestments- involves sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification (the analysis, valuation, and sale of securities, and the management of the associated risk. ) Financial mana ement— involves financial planning, asset management, and fundraising decisions to enhance the value of business. (financial planning, asset management, and fundraising for a business) Liguidm‘ - how easily and with little loss of calue an asset can be exchanged for money. Risk— uncertainly, difference in results, unpredictability m Financial institutions- intermediaries that help the financial system operate efficiently and transfer funds, from savers to individuals, business, and governments that seek to spend or invest funds (walmart, target, etc.) Financial markets locations of electronic forums that facilitate the flow of funds among investors, business, and governments (wholesaler) Stock— ownership Bonds—loan Mong— anything that is generally accepted as payment for goods, services, and debts Gross domestic product )GDP)— a measure of the output of goods and services in an economy Depository institutions- accept deposits from individuals and then lend pooled deposits to businesses, governments, and individuals. Contractual savings organizations-collect premiums and contributions from participants and provide + insurance against major financial losses and retirement benefits. Socurities firms- accept and invest individual savings and facilitate the sale and transfer of securities between investors Finance firms- provide loans directly to consumers and businesses and help borrowers obtain mortgage loans on real property. Central Bank-r a government agency that facilitates the Operation of the financial system and regulates money supply growth Money Multiplier—number of times the monetary base CAN be expanded or magnified to produce a given money supply level Saving” ' - income that is not consumed, but is held in the form of cash or other financial assets Primam Market — where the initial offering or origination of debt and equity securities takes place ...
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