Financial Terms and Roles
June 24, 2013
FIN/370
Lyndi Day

* * Finance- the management of revenues; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking and investment. The monetary resources, as of a government, company, organization, or individual; revenue.
Efficient market- A market whose prices quickly respond to the announcement of new information. (Titman, S., Keown, A.J., & Martin, J.D. (2011).
Primary market- A part of the financial market where new security issues are initially bought and sold. (Titman, S., Keown, A.J., & Martin, J.D. (2011).
Secondary market- The financial market where previously issued securities such as stocks and bonds are bought and sold. (Titman, S., Keown, A.J., & Martin, J.D. (2011).
Risk-A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action. The probability that an actual return on an investment will be lower than the expected return.
Security- A negotiable instrument that represents a financial claim that has value. Securities are broadly classified as debt securities (bonds) and equity securities (shares of common stock). (Titman, S., Keown, A.J., & Martin, J.D. (2011).
Stock-The outstanding capital of a company or corporation. The shares of a particular company or corp oration. The certificate