definition finance week 2

Topics: Investment, Finance, Bond Pages: 3 (571 words) Published: August 5, 2014
University of Phoenix Material

Definitions

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

TermDefinitionResource you used
Time value of moneyAdollar received today is more valauable than a dollar received one year from now.Titman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.

Efficient marketA market that the fundamental value fluctuates randomly.Titman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.

Primary versus secondary marketPrimary is where new securities are bought and sold. While secondary is trading of previously issued securities and they do not receive any new financing.Titman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.

Risk-return tradeoffWill take risk with money only if there is a reterurn to be made.Titman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.

Agency (principal and agent problems)Conflicts that arise out of the separation of management and ownership of the firmTitman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western..

Market information and security prices and information asymmetryHow the market reacts to the release of new information. Titman, S., Keown, A. J., & Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western.n.

Agile and lean principlesAgile allows...
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