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Common terms in finance defined

Can you help me to define the following terms relating to finance? Finance, Efficient Market, Primary Market, Secondary Market, Risk, Security, Stock, Bond, Capital, Debt, Yield, Internal Rate of Return (IRR), Return on Investment (ROI), Cash Flow.

Thank you.

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Define the following terms and identify their role in finance.

a. Finance - A branch of economics that is concerned with the allocation and management of resources as well as investing and acquisitions. It deals with matters related to money and the markets.

b. Efficient Market - The market in which the information on the prices of assets are relevant and current causing the assets to have true pricing. The assertion of information efficiency that is used in the management of the assets for their evaluation is the role it plays in finance.

c. Primary Market - The market that issues new securities on an exchange. The Primary Market's role in finance is to offer an outlet for groups or companies to obtain financing through debt or equity based securities.

d. Secondary Market - The market where investors buy securities or assets from other investors instead of from companies. The Secondary Market's role in finance is to offer investors ...

Solution Summary

This document contains common 14 finance terms defined and identifies the roles. 2 references given.

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