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Defining Financial Terms Essay

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Below is an essay on "Defining Financial Terms" from Anti Essays, your source for research papers, essays, and term paper examples.

Defining Financial Terms
Financial terms are used every day. Understanding financial terms is important in business as well as everyday life. The following will define financial terms and identify their roles in finance. The following terms are all retrieved from financial management: Principles and applications text.
Finance
Finance is the management of money and the market. It targets the formation and application of value and wealth. Just about every adult has to deal finance as well as business. Individuals and companies use different tactics to reach different goals. They want to increase their value and wealth.
Efficient Market
An efficient market shows all the available public information at any time. It will also show the value of the assets and securities. The price will change instantaneously to new information. Securities are sold and purchased based on the information flow and what they think is the true value of the security. The role of the market is to ease unpredictability and assist business to make decisions. Good decision should increase security prices and bad decisions should lower prices.  
Primary Market
The primary market is for new securities. It is the first offering of security. It consists of the initial public offering and seasoned new issues. The initial public offering is the first time the company if offering the security and the seasoned new issue is new security available but already has some securities already issued. The company receives the money for purchase of the security.
Secondary Market
The secondary market is for securities that have already been publicly traded at least once. The buyer would receive the money the money after the purchase not the company. This keeps securities that have already been offered available to purchase or sell.
Risk
Risk is the potential for an undesirable outcome. Risk is weighed and evaluate extensively. Financial decisions are based on the risks that are evaluated. Risk can...

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Defining Financial Terms. Anti Essays. Retrieved December 11, 2018, from the World Wide Web: http://parimatchstavki7.com/free-essays/Defining-Financial-Terms-586753.html