Financial Term

Financial Terms











Finance- Finance is the study of how people and businesses evaluate investments and energise capital to fund them (Titman, Martin & Keown, 2011).
Efficient market- Efficient market is a market in which on the whole the available information is to the full incorpo set outd into securities prices and the returns investors go forth earn on their investments cannot be predicted (Titman et al., 2011).
primary quill market- A part of the financial market where new bail issues atomic number 18 initially bought and sold (Titman et al., 2011).
Secondary market- Secondary market is the financial market where previously issued securities such as stock certificates and bonds are bought and sold (Titman et al., 2011).
Risk-Possibility of loss; the uncertainty that the anticipated return will not be achieved (Mayo, 2012).
Security- security is a negotiable musical instrument that represents a financial claim that has value. Securities are broadly classify as debt securities (bonds) and equity securities (shares of common stock) (Titman et al., 2011).
Stock-An instrument that signifies an ownership thought in a corporation (Titman et al., 2011).




Bond- Bond is a semipermanent promissory note issued by a borrower, promising to knuckle under the owner of the security a predetermined amount of elicit each year (Titman et al., 2011).
Capital market- Capital market refers to all institutions and procedures that facilitate transactions in long-term financial securities (Titman et al., 2011).
Debt-Money that has been borrowed and moldiness be repaid (Titman et al., 2011).
Yield- Yield is the dividend yield, which is obtained by dividing the firms annual cash dividend by the closing price of the stock that day (Titman, 2011).
Rate of return- The rate of return (sometimes referred to as a holding period return) is scarce the cash return divided by the beginning stock price (Titman et al., 2011
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