...Defining Financial terms * Finance * Finance is the study of how people and businesses evaluate investments and raise capital to fund them. Our interpretation of an investment is quite broad. * Business use finance to study every decision they make from investing in a product to market short term or long term, and if the ROI is worth-while or not. Firms must also use this study when recruiting vendors, sub-contractors, and even fresh new employees all of these are investments that need to have a positive ROI in the eyes of the company. * Efficient market * An efficient market is a market in which all the available information is fully incorporated into securities prices, and the returns investors will earn on their investments cannot be predicted. * No insider trading or information. Information is available publicly and traded shares are traded based on equal footing. * Primary market * A part of the financial market where new security issues are initially bought and sold for the first time. * This gives companies the opportunity to raise money for the company. * Secondary market * The financial market where previously issued securities such as stocks and bonds are bought and sold. * This is where investors trade their securities. Companies do not receive any additional money in these transactions it is the profit or loss of the investor. * Risk * The chance that an investment's actual return...
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...FIN 370 Week 1 Individual Assignment Defining Financial Terms Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/fin-370-week-1-individual-assignment-defining-financial-terms/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Finance System including circulation for money, grant of credit, investment opportunities, and banking faculties Without finance, there would be no resource allocations for operating or functional expenditures. Efficient market Efficient market, information is simultaneously available with corresponding funds example – stock market To make intellectual and well-intended fiscal decisions, information pertaining to funds must be readily accessible and available to provide insight and information for clients/investors/brokers. Primary market A market where the security is purchased directly from the issuer by the investor The primary market allows companies to offer bonds and stock to the public for the first time. It is closely related to the secondary market dependent upon one another to be most effective. Secondary market The transactions of stock from investors and dealers without the involvement of the company This market allows for the trading and selling of shares in stock. Without this market, the stock market would not exist...
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...Defining Financial Terms 1 University of Phoenix Inthiravanh Amphonephong Defining Financial Terms FIN/370 Jason Bruno May 11, 2011 Defining Financial Terms 2 Financial Terms 1. FINANCE: A branch of economic that deals with resource management ROLE: Finance is any area of study that helps get manage or invest the money. There is business finance, investment finance, home finance, car finance, and many other types. For most people managing their own money, personal finance is the most important type of finance. 2. Efficient Market: Market efficiency has varying degrees: strong, semi-strong, and weak stock prices in a perfectly efficient market reflect all available information. These differing levels, however, suggest that the responsiveness of stock prices to relevant information may vary. Essentially, it means that the market is performing as anticipated and has been not been effected by current news reports. This is good news for investors as it allows some level of predictability. ROLE: Last week’s report on the U.S. increased unemployment rate had an impact on stock performance. 3. Primary Market: The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold. Defining Financial...
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...Running head: DEFINING FINANCIAL TERMS Defining Financial Terms University of Phoenix Defining Financial Terms a. Finance: “Financial management is concerned with the maintenance and creation of economic value or wealth” (Keown, Martin, Petty, & Scott, 2005, p. 4). • Role in finance: Finance within a company is vital since it leads toward creating wealth. It helps make decisions such as when to introduce new products, when to invest in new assets, and when to borrow money. (Keown et al., 2005, p. 4). b. Efficient Market: “A market in which the values of all assets and securities at any instant in time fully reflect all available public information” (Keown et al., 2005, p. 16). • Role in finance: To provide quick information with accurate and right prices. c. Primary Market: “Transactions in securities offered for the first time to potential investors” (Keown et al., 2005, p. 484). • Role in finance: Provide a channel for sale of new securities. In addition, it also provides a variety of opportunities to those who issue securities such as corporations, or government, to raise resources to meet their requirements within their obligations. d. Secondary Market: “The market in which stock previously issued by the firm trades” (Keown et al., 2005, p. 11). • Role in finance: To provide a place for investors/public an efficient place to trade his/her securities. For management of firms, secondary markets serve as control...
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...Defining Defining Financial Terms 1. Finance – a discipline that explains the ability to manage money, credit banking, assets and investments. Finance looks at money and anything that is related to money in the market. The purpose of finance is to aid any company with an ability to manage money. 2. Efficient Market – the level in where the stock prices will reflect all of the available and significant information. The three different levels of market efficiency are ; weak, semi-strong, and strong. This level of market efficiency can suggest that stock prices are directly connected and will respond to the level of relevant information. 3. Primary Market – This market issues new securities on an exchange market. The primary market can also be called a “new issue market” or (NIM). The primary market is compiled of a group of underwriters that are part of investment banks and they will set the price range for a number of specific securities and will directly oversee the sales to investors. 4. Secondary Market – In this market investors will purchase securities or assets from other investors as opposed to purchasing them from the corporations that issue them. NASDAQ and The New York Stock Exchange are the primary examples of a secondary market. 5. Risk – the gamble that the return on an investment will be different than the original projected return. 6. Security – This is a instrument that represents ownership (stocks), the right to ownership (derivatives), or a debt agreement...
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...Running Head: Defining Financial Terms Defining Financial Terms University of Phoenix, SF Campus Michael Charley FIN 370 – Finance for Business December 8, 2010 Instructor: Deepak A. Patel Finance is to apply for a credit loan to finance a home, car, and business, from a Bank when funds are needed for this type of huge purchase * Efficient market- Profit driven individuals that act on their own; where all assets, securities reflect any and all available public information at any instant in time; Investors also make sure the price reflects appropriately the expected earnings and the risks that are involved as well as the value of the firm Role in Finance- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Conversely, an inefficient market is one in which there is limited information available for making rational investment decisions and limited trading volume. * Primary market- When new trades are put on the market that have not been sold or traded to investors. Role in Finance- Primary markets enable firms to raise capital through the sale of financial assets. Businesses are able to access potential investors that are outside its immediate influence. Businesses have to meet...
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...Defining Financial Terms 1. Finance: Finance is the science of the management of money and other assets. This is essential for businesses with importance to capital and holdings. (Titman, Keown, & Martin, 2011) 2. Efficient Market: Efficient market is defined as a price where the holdings show both current as well as relevant figures; the assets fundamentally have their actual prices. The affiliation to finance is that the statement of information efficiency is operating in asset management with respect to their assessments. 3. Primary Market: Primary market is defined as a market relating to new securities where the securities are sold first (Titman, Keown, & Martin, 2011) . The securities are directly purchased from the issuer. This is important in finance ability as an importance of the fact that the growth of long-term capital through the issuance of securities is a necessary issue in finance. 4. Secondary Market: Secondary market is defined as where securities are traded that has earlier been issued within the primary market (Titman, Keown, & Martin, 2011). Usually, the securities are issued in either public offering or private. This is necessary within finance because these markets provide liquidity to stake holders. 5. Risk: Risk is defined as a possibility when the investment might potentially be unsuccessful to receive the expected returns, which may result in the loss of the original investment. It is very important within finance to assess...
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...Defining Financial Terms 1. Finance: Finance means the dealing of providing funds and capital for earnings. In addition it includes getting money for a particular reason. This is a vital act because of the fact that it involves the administration of both capital as well as holdings. 2. Efficient Market: This is a place where the price of holdings proves both current as well as relevant figures; the assets fundamentally have their actual prices. The relationship to finance is that the statement of information effectiveness is utilized in asset management with respect to their valuation. 3. Primary Market: This is the market relating to new securities where the securities are sold first. The securities are directly purchased from the issuer. This is significant in a finance capacity as a consequence of the fact that the growth of long-term capital through the issuance of securities is an essential issue in finance. 4. Secondary Market: This is a place where refuges are traded that has earlier been issued within the primary market. Usually, the securities are issued in either public offering or private. This is essential within finance because these markets provide liquidity to stake holders. 5. Risk: Prospect is there that the investment might possibly be unsuccessful to receive the projected returns, that may subsequently result in the loss of the original investment. It is fundamental within finance to assess risk so that the possibility of not receiving...
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...Individual Assignment: Defining Financial Terms • Resource: Financial Management: Principles and Applications • Define the following terms and identify their roles in finance: Finance- A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Basically, finance deals with matters related to money and the markets. Efficient market- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Primary market- The primary market is the market for new securities issues. In the primary market the security is purchased directly from the issuer. Secondary market- A secondary market is where investors purchase securities or assets from other investors, rather than from issuing companies. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Risk- Risk is defined as the variability of returns from an investment, the greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Security- Security is collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate...
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...Lloyds Banking Group Rob Murray CFO, Coca-Cola Hellenic B Document title Additional text In this report Executive summary 2 Contributing to strategy 4 A broader business role 6 Core competencies remain key Future focus on stakeholder communication 10 12 and 18 The CFO’s contribution 14 Staging post or career destination? 20 A toolkit for the aspiring CFO 22 Demographics 26 What makes a CFO 28 Ernst & Young contacts 29 The DNA of the CFO provides fresh insight into what it is to be a CFO today by talking to today’s CFOs. This Ernst & Young report is based on our analysis of a survey of 669 senior finance professionals in Europe, the Middle East, India and Africa, and a program of in-depth interviews with leading CFOs and finance directors from these regions – allowing...
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...possess common skills or expertise to be able to carry out these activities proficiently. Some basic examples of departments, that most businesses have, are Finance, Sales & Marketing, Administration, Human Resources, and Operations. Functional managers head these departments, who have the role and responsibility to plan, organize, direct, and control their department to be able to achieve their department objectives. Who are managers and what they do? “Manager is someone who uses authority and reason for efficient and effective problem solving and to mobilize, coordinate, and control organizational resources by the use of standardized procedures that are a part of organizational policy” (Prevodnik, M., & Biloslavo, R., 2009, P.87). As we know, a manager is a person who uses all management functions such as planning, organizing, leading, and controlling to perform business functions successfully. The roles of a manager include directing, overseeing and leading resources of the organization towards objectives created by the organization and then sub-divided for each function. He is responsible for evaluation of performance and execution out activities, controlling deviations and implementing contingency plans to ensure things go according to the organization’s objectives. Goals are set in the long term, and short term planning based on business function. Human Resource and Administration The human resource business function is all about activities concentrated...
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...Advanced Corporate Finance: Guidelines for In-class Presentations and Term Papers 1. Grading The information in the handouts is not very clear and does not include the case, so here some more precision about the grading rules: Everybody should do a writeup for the Wrigley Capital Structure Case. If you only do the case the final exam will count for 70% and the case writeup for 30% of the final grade. In case you want to improve your grade you should think about handing in a term paper or making an in-class presentation. If you do this the case writeup as well as the term paper or presentation will count for 25% of the final grade and the final exam will be reduced to 50%. 2. In-class Presentations The fundamentals: Approximate size: 10-15 powerpoint slides Approximate duration: 15 min Presentation date: will be assigned by me depending on the content Maximum group size: 4 class participants Presentations are optional Not everybody will be able to participate in a presentation, Purpose of the in class presentation: The presentations are intended to summarize academic research on a given issue. The presentation should not only be factually correct and complete but the topic should be well presented. The class should be able to easily understand and follow the argumentation. Grades will not only depend on the content but also on the quality of the presentation. Format: There is no predefined format, as the optimal way to present an issue depends...
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...that is physical existence. Example: Ice-cream, vehicles, house, hand phone and television. ← Intangible products Intangible products are the things that are incapable of being touched; it comes in a form of services provided to consumers. Example: Car wash, repairing electronic things, performances and medical check up. 2) What is Strength- Weakness- Opportunity- Threats (SWOT) analysis? Explain detail about the SWOT analysis. SWOT analysis is a strategic planning method used in a project or in a business venture. It involves specifying of the business ventures and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis must first start with defining or objective. SWOT analysis is known by Worldwide and has been the subject of much research. This is what SWOT stand for: ▪ S- Strength: -The stability of a product in next 5 years. -The requirement of the market. ▪ W- Weakness: -The lack of ability in technology. -Drawbacks within the organization ▪ Opportunity: -Business opportunity in new and future market. ▪ T- Threats: -The competitive of competitors -Lack of ingredients -Natural disaster such as earthquake. The aim...
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...JOURNAL OF BUSINESS LOGISTICS, Vol.22, No. 2, 2001 1 DEFINING SUPPLY CHAIN MANAGEMENT by John T. Mentzer The University of Tennessee William DeWitt The University of Maryland James S. Keebler St. Cloud State University Soonhong Min Georgia Southern University Nancy W. Nix Texas Christian University Carlo D. Smith The University of San Diego and Zach G. Zacharia Texas Christian University “Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materials, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for anticipating the effects of decisions, policies, organizational forms, and investment choices.” (Forrester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynamics can influence the performance of functions such as research, engineering, sales, and promotion. 2 MENTZER, DeWITT, KEEBLER, MIN, NIX, SMITH, AND ZACHARIA He illustrated this phenomena utilizing a computer simulation of order information flow and its influence on production and distribution performance for each supply chain member, as well as the entire supply chain system. More recent replications of this phenomenon include the “Beer...
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...Individual Assignment: Defining Financial Terms Resource: Financial management: Principles and applications Define the following terms and identify their roles in finance: • Finance - The management of revenues or other liquid resources of a government, business, group or individual; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking, investments and credit. It can simply be defined as sell on credit or commercial activities that are study to manage capital and assets. Finance is an important part of any organization because it deals with resource allocation, accounting, resource management, and investments. • Efficient market - A market in which the values of securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same. Efficient market is an integral part of understanding the value of shares and value of shareholders. In doing so, financial managers will have better information in making decision in terms of maximization of shareholder wealth. • Primary market- Transactions in securities offered for the first time to potential investors. Is the main market to which you are selling or buying directly from the issuer at par value (e.g. corporate bond). It is the company or any entity that the securities come from. In order for a stock to be considered in the primary market, the company or other...
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