...• Finance- A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Finance deals with matters related to money and the markets. • Efficient market- Efficient market is the market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets. • Primary market- Primary market is the location where the securities are issued for the first time on exchange. In a primary market, the investor does not buy from another investor and the issue price is the same for the buyers. • Secondary market- A secondary market is a place where an investor can buy securities from another investor rather than the issuing companies for more or less than the actual price. • Risk- Risk is the uncertainty involved in any transaction, as the actual return earned on investment may be different from expected. The chance that there is a difference is also known as risk. • Security- The instrument which represents right on the profit which is generated by the use of assets of business is called security. Some securities are interest based and some are dividend based securities. Some of the securities are common stock, preferred stock, bonds, notes, debenture, option, future, swap, right, warrant or any other financial assets. • Stock- Stock represents the ownership in the business and a claim...
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...• Finance Studying money and how it’s controlled either by an individual or by a business. Several portions of finance are considered imperative. One key component of finance is the knowledge and understanding of credit and how it works within banking. • Efficient market This type of market ‘a values of assets and securities are reflected and made available to the public at all times. An efficient market is a market that an investor would want to make investments in. • Primary market This is the type of market in which an individual is able to buy and maintain stocks and bonds that are new securities. This is the only point in which an issuing firm makes money from their stocks. The money that the individual would use to purchase stocks goes to the stock issuer. This relationship makes the individual a purchaser in a primary market. • Secondary market Once the stocks are newly issued, they then become subject to the public. This is when trading begins known as the secondary market. • Risk This is known as the likelihood of a negative outcome that can happen during an investment. When it comes to stocks, risks are usually linked to high levels of instability. • Security A security in stocks, bonds, or the right that an individual has as ownership within an establishment. Securities can be traded within primary and secondary markets. • Stock Represents the original investment paid into or capitalized in the corporation by its founders. It can serve...
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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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...government agencies, chambers of commerce, trade associations, and other organizations. RESOURCE: All Business, (2014). TERM: Risk-return tradeoff DEFINITION: We won’t take on additional risk unless we expect to be compensated with additional return. RESOURCE: (Business Dictionary., 2014). TERM: Agency (principal and agent problems) DEFINITION: A firm’s common stockholders, the owners of the firm, are the principals in the relationship, and the managers act as “agents” to these owners. If the managers have little or no ownership in the firm, they have less incentive to work energetically for the company’s shareholders and may instead choose to enrich themselves with perks and other financial benefits. RESOURCE: (Mayo, 2012, chapter 1) TERM: Market information and security prices and information asymmetry DEFINITION: Marketing information - the...
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...Create a list of definitions of the following terms and identify their roles in finance: Finance: This is the study of how people and businesses evaluate investments and raise capital to fund them. It is also considered to be the science of the management of money and other assets. One example would be family personal finances, taking what is being made versus what is being spent, and evaluating that to purchase vehicles, homes or other family needs. Efficient market: This is a market whose prices quickly respond to the announcement of new information. One example would be the iphone. As soon as the new iphone 5 was released today, the iphone 4s is now on discount. Another great example would be the stock market, as these change drastically and often based on new announcements. Primary market: This is a part of the financial market where new security issues are initially bought and sold. One great example would be Companies, governments or public sector institutions that funding through the direct purchase of a new stock or bond. Secondary market: This is a financial market where previously issued securities such as stocks and bonds are bought and sold. A great example of this would be after the bank is issued stocks and bonds, they are then sold to consumers and customers at the bank. Risk: Risk is a possibility for investments. Shareholders, investors, business owners all have a certain amount of risk. Risk is the possibility you'll lose money if an investment you make...
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...Howard Parsons July 17, 2012 Financial Terms and Roles 1. Finance – The management of money by governments and companies. The only role the word finance has in finance is the word itself. It is the definition of what exactly finance is. 2. Efficient Market – A market where all pertinent information is available to all participants at the same time. An efficient market allows for businesses and investors to make the best investment decisions possible based off of current information. 3. Primary Market – The market where companies initially sell stocks that they have been authorized to sell. The primary market allows firms to raise available capital by going public and selling initial stocks. 4. Secondary Market – The market where investors sell and trade previously issued stock. The secondary market allows investors to buy, sell, and trade previously issued stock in the hope of earning money for them. The gain or loss is not absorbed by the company that issued the stock but rather the person who initially purchased the stock. 5. Risk – The chance that the actual return on an investment will be less than what was the projected return. Taking on risky investments that have a higher projected return can lure in investors. The projected returns are higher because the risk of failure, or loss of money, has a higher possibility. 6. Security – An instrument that is issued to show ownership. Common securities are bonds, notes, and stock shares. Securities are used by publicly...
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...University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. |Term | | | |Time value of money |Definition |Money received in the present is more valuable than the same money in the | | | |future, given there is interest earned during that period. | | |Resource you used |Time Value of Money. (2015). In Investopedia. Retrieved from | | | |http://www.investopedia.com/terms/t/timevalueofmoney.asp | |Efficient market |Definition |Existing share prices in the stock market always reflect and incorporate | | | |relevant information because of stock market efficiency, thus it is | | | |impossible to “beat the market.” | | |Resource you used |Efficient Market Hypothesis-EMH. (2015). In Investopedia. Retrieved from | | ...
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...University of Phoenix Material 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 |“A dollar received today is worth more than a|Titman, S. Keown, A. J. & . Martin ,J. D. (n.d.). | | |dollar received in the future. Conversely, |Financial Management. Principles and Applications: | | |a dollar received in the future is worth less|Chapter 1: Getting Started: Principles of Finance: 1.4. | | |than a dollar received today. Perhaps the |The Five Basic Principles of Finance. 12th,. ed. | | |most fundamental principle of finance is that|Copyrighted by Pearson Education. (2014). Retrieved from| | |money has a time value. A dollar received |https://newclassroom3.phoenix.edu/Classroom/#/contextid/| | |today is more valuable than a dollar received|OSIRIS:48546409/context/co/view/activityDetails/activity| | |one year from now. That is, we can invest the|/3195cb75-8a75-4bd9-a1c3-0092ba334301/expanded/False | | ...
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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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...FIN 370 Week 3 Assignment Precision Machines Part 1 Click Link Below To Buy: Click Link Below To Buy: http://hwcampus.com/shop/fin-370-week-3-assignment-precision-machines-part-1/ Precision Machines is preparing a financial plan for the next six months to determine the financial needs of the company. The historical analysis of the company’s sales shows that the company’s total sales are 30% cash sales and 70% credit sales. Further analysis of credit sales shows that the company receives 50% of the credit sales one month after the sale and the remaining 50% in the second month after the sale. This means the cash collections from sales are 30% in the first month of the sale, 35% in the second month, and 35% in the third month. The materials purchased by the company amounts to 50% of the sales for the month. The company pays for the purchases one month after the initial purchase. The company likes to maintain a cash balance of $5,000. The cost of borrowing is 10%. The company plans to pay off the loan whenever there is a surplus and borrow when there is a deficit. The attached spreadsheet shows revenues (sales), expenses, capital expenditures, and other expenses for Precision Machines’ next six months. Using the information given on the spreadsheet, prepare a cash budget for January through June and determine the cash surplus, deficit, and the financing needs of the company. Review the Learning Team Assignment due in Week 5. Create an outline...
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...Financial Terms and Roles April 8, 2014 FIN/ 370 1. Finance: Finance is the study of how people and businesses evaluate investments and raise capital to fund them. (It is how large firms or the government manage large sums of money). 2. 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. (Past data stock prices cannot help in predicting future stock prices). 3. Primary market: A primary market is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. In this market, firms issue new securities to raise money that they can then use to help finance their businesses. The key feature of the primary market is that the firms that raise money by selling securities actually receive the money. (Primary markets are done by underwriting groups like investment banks, they set a beginning price range and ensure its sales goes to investors.) 4. Secondary market: The secondary market is where all subsequent trading of previously issued securities takes place. In this market the issuing firm does not receive any new financing, as the securities it has sold are simply being transferred from one investor to another. (An easy way an investor can sell or liquidate investments.) 5. Risk: The chance that the investment’s actual return will be different. (The possibility...
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...155 Week 1, BIS 155 Week 2, BIS 155 Week 3, BIS 155 Week 4, BIS 155 Week 5, BIS 155 Week 1-5, BIS 155 mcqs, BIS 155 , BIS 155 DeVry, BOSP 434 Complete Course, BOSP 434 Complete Class, BOSP 434 Entire Course, BOSP 434 Entire Class, Strayer BOSP 434 , BOSP/434 , BOSP 434 All Assignments, BOSP 434 All Dqs, BOSP 434 ExerCises, BOSP 434 Final, BOSP 434 Week 1, BOSP 434 Week 2, BOSP 434 Week 3, BOSP 434 Week 4, BOSP 434 Week 5, BOSP 434 Week 1-5, BOSP 434 mcqs, BOSP 434 , BOSP 434 DeVry, BUS 100 Complete Course, BUS 100 Complete Class, BUS 100 Entire Course, BUS 100 Entire Class, BUS 100 , BUS 100 New Course, BUS 100 All Assignments, BUS 100 All Dqs, BUS 100 ExerCises, BUS 100 Final, BUS 100 Week 1, BUS 100 Week 2, BUS 100 Week 3, BUS 100 Week 4, BUS 100 Week 5, BUS 100 Week 1-5, BUS 100 , BUS 100 , BUS 100 Strayer, BUS 475 Complete Course, BUS 475 Complete Class, BUS 475 Entire Course BUS 475 Entire Class, Strayer BUS 475 , BUS 475 New Course, BUS 475 All Assignments, BUS 475 All Dqs, BUS 475 ExerCises, BUS 475 Final, BUS 475 Week 1, BUS 475 Week 2, BUS 475 Week 3, BUS 475 Week 4, BUS 475 Week 5, BUS 475 Week 1-5, BUS 475 mcqs, BUS 475 , BUS 475 Strayer, BUSN 319 Complete Course, BUSN 319 Complete Class, BUSN 319 Entire Course, BUSN 319 Entire Class, BUSN 319, BUSN 319 New Course, BUSN 319 All Assignments, BUSN 319 All Dqs, BUSN 319 ExerCises, BUSN 319 Final, BUSN 319 Week 1, BUSN...
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...loan approval? • Analyze whether the investment in the truck is profitable. • Explain whether it is more beneficial for Frank to close his business. • Explain what you would do in this same situation. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignments. Supporting Material: Frank Smith Plumbing Case Study Frank Smith Plumbing Case Study Excel Spreadsheet Cash Flow Analysis Grading Guide Find The Complete Answers just a click away FIN 370 Complete Answer About Author This article covers the topic for the University Of Phoenix FIN 370 Week 4 Cash Flow Analysis the author is working in the field of education from last 5 years. This article covers the basic of FIN 370 Complete Answer from UOP. Other topics in the class are as follows: FIN 370 WEEK 4 CASH FLOW ANALYSIS FIN 370 FINAL EXAM (NEWEST) FIN 370 WEEK 1 COMPLETE FIN 370 WEEK 2 COMPLETE FIN 370 WEEK 3 COMPLETE FIN 370 WEEK 4 COMPLETE FIN 370 WEEK 5 COMPLETE Want to check other classes..?? Visit...
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...FIN 370 Complete Class Click Link Below To Buy: http://hwcampus.com/shop/fin-370-complete-class/ FIN 370 Week 1 Assignment lake of Egypt Marina, Inc. Review the financial statements for Lake of Egypt Marina, Inc. Complete the following problem sets from Chapter 3 in Microsoft® Excel®: • 3-29 Spreading the Financial Statements • 3-30 Calculating Ratios Format your assignment consistent with APA guidelines. • FIN 370 Week 2 STRATEGIC PLANNING The topic is Boeing. Find the company selected for the Week 2 assignment's annual report from SEC.gov or the investor relations section of the company's website. Be careful not to use quarterly reports. Write a 350 word paper in which you describe the relationship between strategic and financial planning. Include the following: • How the initiative affects the organization's financial planning • How the initiative affects costs and revenues of the supply chain. Paper must be in APA style and please include references • • Website resources for Boeing http://finance.yahoo.com/q?. FinStatements_2012_2013_2014_Boeing.docx (591k https://finance.yahoo.com/q/is?+Income+Statement&annual FIN 370 Week 2 financial markets and institutions report In Week 2, the students will explain the difference between organized and unorganized, primary and secondary, and money and capital markets. They will describe the role of the various financial institutions and financial markets in the economy. Create a 1,050-word report...
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...FIN 370 Week 3 Team Assignment Caladonia Products Integrative Problems Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/fin-370-week-3-team-assignment-caladonia-products-integrative-problems/ 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/ ) Solutions Guide: 1. We focus on free cash flows rather than accounting profits because these are the flows that the firm receives and can reinvest. Only by examining cash flows are we able to correctly analyze the timing of the benefit or cost. Also, we are only interested in these cash flows on an after tax basis as only those flows are available to the shareholder. In addition, it is only the incremental cash flows that interest us, because, looking at the project from the point of the company as a whole, the incremental cash flows are the marginal benefits from the project and, as such, are the increased value to the firm from accepting the project. 2. Although depreciation is not a cash flow item, it does affect the level of the differential cash flows over the project’s life because of its effect on taxes. Depreciation is an expense item and, the more depreciation incurred, the larger are expenses. Thus, accounting profits become lower and in turn, so do taxes which are a cash flow item. 3. ...
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