Week 1 Definitions
University of Phoenix Material
Definitions
Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines.
Term
Definition
Resource you used
Time value of money
Time value of money refers to the value of money based on its earning potential. Money received today is more highly valued than money received in the future because of the potential to make money on money. i.e. if I were given 100 dollars today I could immediately invest that money and potentially turn it into 150 dollars in 6 months time versus receiving 100 dollars in six months time.
Time Value of Money (TVM) Definition | Investopedia. (2014, January 1). Investopedia. Retrieved July 1, 2014, from http://www.investopedia.com/terms/t/timevalueofmoney.asp
Efficient market
An efficient market is a market where all information is available to all market participants at any time. This means that people can make investment decisions based on factual information immediately after that information is available.
My own common knowledge, no cite necessary.
Primary versus secondary market
“Primary vs. secondary market says that the primary market deals with the newly issued securities while the secondary market deals with already traded securities. When the companies issue securities in the primary market, they collect funds directly from the investors through the securities sales. But, in the secondary market the money earned from selling a security does not go to the company. The money thus earned goes to the investor who sells the security.”
Primary vs. Secondary Market. (2014, January 1). Primary vs. Secondary Market. Retrieved July 2, 2014, from http://finance.mapsofworld.com/capital-market/primary-vs-secondary.html
Risk-return tradeoff
Risk return tradeoff refers to the anomaly in investment that exists between the level of risk and the level of return. The typical idea is the higher the risk, the higher the reward and vise versa. Lets use betting at
Definitions
Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines.
Term
Definition
Resource you used
Time value of money
Time value of money refers to the value of money based on its earning potential. Money received today is more highly valued than money received in the future because of the potential to make money on money. i.e. if I were given 100 dollars today I could immediately invest that money and potentially turn it into 150 dollars in 6 months time versus receiving 100 dollars in six months time.
Time Value of Money (TVM) Definition | Investopedia. (2014, January 1). Investopedia. Retrieved July 1, 2014, from http://www.investopedia.com/terms/t/timevalueofmoney.asp
Efficient market
An efficient market is a market where all information is available to all market participants at any time. This means that people can make investment decisions based on factual information immediately after that information is available.
My own common knowledge, no cite necessary.
Primary versus secondary market
“Primary vs. secondary market says that the primary market deals with the newly issued securities while the secondary market deals with already traded securities. When the companies issue securities in the primary market, they collect funds directly from the investors through the securities sales. But, in the secondary market the money earned from selling a security does not go to the company. The money thus earned goes to the investor who sells the security.”
Primary vs. Secondary Market. (2014, January 1). Primary vs. Secondary Market. Retrieved July 2, 2014, from http://finance.mapsofworld.com/capital-market/primary-vs-secondary.html
Risk-return tradeoff
Risk return tradeoff refers to the anomaly in investment that exists between the level of risk and the level of return. The typical idea is the higher the risk, the higher the reward and vise versa. Lets use betting at