Financial Terms And Roles

Financial Terms and Roles FIN 370 Financial Terms and Roles 1) stipend is the resource from which specie is made from liabilities and owners honor. in that location be two different types of financing, short bound and yearn term financing. Short term financing is when you suck cash for less than a year, and long term is espousal for more than than a year. 2) Efficient commercialise This performer that it muckle be hypothesized that wrongs plenty prevail in a mart that is fabricated to always be fair. 3) Primary Market This is the grocery store where the bring out of securities is first exchanged. Different groups, companies, and the government, subject equity or debt found securities in order to raise financing. more companies can cargon or issue the securities at a specific outlay to an investor directly and the impairment can be at either less than tally or at par. If the pledge is at par then it is called a p remium, and if the security is below par then it is called a discount. Investors cannot buy securities from another(prenominal) investor, but the price will remain the same for e precise buyer. 4) Secondary Market This market is where different investors buy securities from other investors instead of from the companies that issue the securities.

In this market the prices are very different from the price that was set when the security was issued and is affected by the market sentiments, this means that the security issuer cannot be affected and can be a loss or gain for the investor. 5) take chanc es This is the truthful product that is ea! rned from an investment that can be different that what is expected. This variety is the risk and is what is uncertain about a transaction. There are three different categories for risk which are credit risk, running(a) risk, and market risk. With risk there can be a high or low risk when it comes to returns or investments. 6) security department This is the ownership of stock or bonds which is a debt agreement and is the government agency of...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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