Financial Terms

In: Business and Management

Submitted By nhoover89
Words 256
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Finance – The study of how people and businesses evaluate investments and raise capital to fund them.
Efficient market – A market in which prices correctly reflect all relevant information.
Primary market – A market in which new, as opposed to previously issued, securities are bought and sold for the first time.
Secondary market – Is where all subsequent trading of previously issued securities takes place.
Risk – Is often defined as the standard deviation of the return on total investment.
Security – A negotiable instrument that represents a financial claim.
Stock – Ownership of a corporation indicated by shared, which represent a piece of the corporation’s assets and earnings.
Bond – A long-term (10-year or more) promissory note issued by a borrower, promising to pay the owner of the security a predetermined amount of interest each year.
Capital – Money that is used to generate income or make an investment.
Debt – Money that has been borrowed and must be repaid. This includes such things as bank loans and bonds.
Yield – The percentage return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.
Rate of return – In securities, the amount of revenue an investment generates over a gien period of time as a percentage of the amount of capital invested.
Return on investment – The money that a person or company earns as a percentage of the total value of the assets that are invested.
Cash flow – A revenue or expense stream that changes a cash account over a specific…...

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