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Week+1+Individual+Assignmt Scott Ward

Week+1+Individual+Assignmt Scott Ward - Define the...

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Define the following terms and identify their role in finance: 1. Finance – The science of fund management. This is what makes finance jobs possible. 2. Efficient Market – This is where all market participants receive and act on all of the relevant information as soon as it becomes available. Helps with people investing in the stock market to have a fair shot in financial game. 3. Primary Market - This is the part of the capital markets that deals with the issuance of new securities. This is where new stocks and bonds are sold. 4. Secondary Market – This is where previously issued stocks and bonds are bought and sold. People like investment bankers roam these markets. 5. Risk - is often defined as the unexpected variability or volatility of returns and thus includes both potential worse-than-expected as well as better-than-expected returns. Helps keep the stock market alive, gives it the thrill some people look for with their money.
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