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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 A simple financial principle that believes money received today is worth more than an equal amount received in the future Aubry, M., Hobbs, B., & Thuillier, D. (2009). The contribution of the project management office to organisational performance. International Journal of Managing Projects in Business, 2(1), 141-148.
Efficient market A theoretical efficient market occurs when information flows freely, allowing supply and demand to react instantly to market changes. Aubry, M., Hobbs, B., & Thuillier, D. (2009). The contribution of the project management office to organisational performance. International Journal of Managing Projects in Business, 2(1), 141-148.
Primary versus secondary market In the stock market, the primary market is one that issues a new security, such as an initial public offering. A secondary market is one that trades a security after its initial availability. Aubry, M., Hobbs, B., & Thuillier, D. (2009). The contribution of the project management office to organisational performance. International Journal of Managing Projects in Business, 2(1), 141-148.
Risk-return tradeoff The potential for higher returns in the market generally comes with higher risk. Inversely, lower expected returns are generally associated with lower risk. Soliman, M. T. (2008). The use of DuPont analysis by market participants. Accounting Review, 83(3), 823-853.
Agency (principal and agent problems) Companies are comprised of owners and managers, but their goals are sometimes not perfectly aligned. For example, managers may work towards profitability to receive a bonus, even if it is not ideal for their principle shareholders, thus presenting an

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