Week 1 Assignment Fin370

oFinance: o- 4 basic principles ? notes has a Time measure out ? there is a risk-return trade-off ?Cash flows argon the source of value ?Market prices reflect information ?The study of how people/businesses estimate finance and increase capital to fund them. o in force(p) market o- Market Hypothesis ?Weak-form ?Semi-strong ?Strong-form ?A market in which all the information is completely incorporated into securities prices and returns to the investors leave entirely earn. oPrimary market ?The market where new securities atomic number 18 bought and interchange for the firstborn time. ?Corporations and firms raise gold by merchandising securities o subsidiary market ?Where all subsequent trading of previously issued securities ar sold and bought between investors. oRisk ?Taking a chance or risk by investing in an investment in the prospect that it go away have a monetary return. ?An investor who seeks a higher return must be willing to allow a higher level of risk. oSecurity ?A conveyable instrument that represents a financial claim. ?A security is every reside, certificate of reside, claim to, or right to buy something of value. i.e. phone line, favourite(a) tenor, bonds, shares, UITs, and limited partnership units.

oStock ?Units of securities that represent ownership interest in a corporation or firm. Common stock is an equity security. oBond ?A debt security that represents money loaned to a corporation. ? unremarkably a debt that has a maturity date chronic than 10 years. oCapital ?Stocks, bonds, or mutual funds are f orms of capital. ?The value of securities ! oDebt ?To owe. Bonds are forms of debt that a corporation issues for more(prenominal) capital to grow. ?Money that has been barrowed and must be paid back. oYield ?Found by calculating annual dividend by the new market price. Used to show the how much an investor will earn from holding a bond until it matures, how much money will be yielded. oRate of return ?An amount...If you want to gravel a full essay, order it on our website: BestEssayCheap.com

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