Finance

Financial Management

Paul Agnes Pierre Louis

FIN/370

Hector A. Morales

Finance Management

Finance: A discipline concerned with determining value and making decision. The finance function allocates resources, including the acquiring, investing, and managing of resources. One of the main subsets of finance is the study of credit and banking, as this involve money, time, and risk all together.

Efficient Market: The indication that the worth of price of stocks or alternative investments in an organization are precisely displayed and are an accurate account of the value of the investment. In an efficient market the organization, as well as the investors, are allowed access to all financial information pertaining to the organization so that there are no inconsistencies in markets.

Primary Market: In primary market stocks are purchased by the investors from the issuer of stocks and securities rather than a second or third party. With the primary market it can be more volatile than the secondary market because it is difficult to determine the underlying value of new issues.

Secondary Market: The market in which investors acquire securities or stocks from other investors instead of the initial issuer of the stocks or securities. The secondary market is also known as the aftermarket. The secondary market is often less volatile than the primary market because it is easier to determine the underlying value of a security after it has already begun trading.

Risk: The measurable prospect of the loss investors can take when purchasing securities or stocks when they do not result in the expected returns.

Security: An instrument that, for a stock, shows ownership in a firm; for a bond, indicates a creditor relationship with a firm or with a federal, state, or local government; or signifies other rights to ownership.

Stock: ownership of corporation indicates by shares, which represent a piece of the corporation's assets and...