Fin 370 Week 1

University of Phoenix Material

Definitions

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

|Term |Definition |Citation |

|Time value of money |This describes the depreciation of the value of |(Titman, 2014) |

| |currency as a result of inflation and other | |

| |factors. Money that is invested has the | |

| |potential of earning interest and money that is | |

| |not will not earn interest | |

|Efficient market |This theory is based on principle 4 which states|(Titman, 2014) |

| |that market prices reflect information. This | |

| |depends on its accuracy and currency. If the | |

| |market is efficient it offers equal opportunity | |

| |to all investors. | |

|Primary versus secondary market |A primary market is when a companies shares are |(Titman, 2014) |

| |available for the first time to a stockholder. |...