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Definitions

Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines.

|Term |Definition |Resource you used |
|Time value of money |The idea that money available at the present time is worth more than the same |www.investopedia.com |
| |amount in the future due to its potential earning capacity. This core |that my current money is worth more than|
| |principle of finance holds that, provided money can earn interest, any amount |my future money |
| |of money is worth more the sooner it is received. | |
|Efficient market |Market efficiency was developed in 1970 by Economist Eugene Fama who's theory |www.investopedia.com |
| |efficient market hypothesis (EMH), stated that it is not possible for an |that an investor can not out smart the |
| |investor to outperform the market because all available information is already|stock |
| |built into all stock prices | |
|Primary versus |A market that issues new securities on an exchange. Companies, governments and|www.investopedia.com |
|secondary market |other groups obtain financing through debt or equity based securities. Primary| |
| |markets are facilitated by underwriting groups, which consist of investment | |
|

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