Topics: Investment, Finance, Bond Pages: 2 (613 words) Published: April 7, 2013
Finance: In the world of economics, this branch deals with investments, acquisitions and management of resources. The role of finances is the relationship between the investment markets and money.

Efficient Market: This type of market is directly involved with the distribution of important information to all principles at the same time, so that all trades in the market are valued appropriately with the information available. The stock market is considered a strong and good example of efficient markets in the world of finance.

Primary Market: In this type of market, the seller and buyer is able to negotiate transactions directly eliminating the need to have an intermediary such as a reseller. An example here can be like buying stock directly from IBM, without the need to contact a reseller it is just between IBM and the buyer.

Secondary Market: This market involves the investor purchasing assets from other investors, instead of the company that actually issues them. The involvement in the finance world is seen for example in the role of thee New York Stock Exchange.

Risk: The uncertainty of a return and the impact it will provoke as a result of a lower profit. The role of risk in finance is when the price of stock drops due to an outside influence and the investor’s profit is lower than expected.

Security: Is a prepared instrument either by governmental agency or a firm which explores and affirms ownership interest which discloses debt, earnings or the right to distribute property. Securities in the finance world have the roles of notes, shares, bonds to include a few.

Stock: The stock represents ownership in an organization/corporation, representing shares in a corporations profits and its assets. Stocks play an important role in a portfolio, bringing value and respectability to its long time worth. Bond: Used to increase capital by borrowing, this instrument is usually i place for ore than one year. An important type of bond that...
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