Financial Terms and Roles

Financial Terms and Roles Helen Kincaid FIN/370 expect for Business awful 20, 2012 hit it up Shah Financial Terms and Roles Create a list of definitions of the sideline terms and identify their roles in finance: Finance Finance is the study of how people and business quantify investments and raise great(p) to fund them. Efficient grocery store A mart whose expenses cursorily respond to the announcement of new data Primary market A part of the monetary market where new security issues argon initially bought and sold substitute market The pecuniary market where previously issued securities much(prenominal) as stocks and bonds argon bought and sold assay The fortune that an investments material return will be different from the expected return, including the eventual(prenominal) seek of losing all of virtuosos original investment. Risk usually is measured by calculating the standard excursion of the historical returns or medium retu rns or of a ad hoc investment. The greater the variability, the greater the risk and investors are generally unwilling to risk, investments with greater risk hope higher expected yields. protection A negotiable legal document that represents a financial clam that has value.

Securities are broadly categorize as debt securities (bonds) and comeliness securities (shares of common stock) Stock An instrument that signifies an willpower position in a corporation Bond A long (10-year or more) promissory note issued by a borrower, vivid to pay the owner of the security a predetermined touchstone of bear on each year Capital Financial assets or the fina! ncial value of assets, such(prenominal) as cash that is used to restore 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 Yield is the dividend yield, which is obtained by dividing the sures annual cash dividend by the closing price of the stock that day. Rate of return Income you...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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