Purchase Solution

Terms in the Financial Field

Not what you're looking for?

Ask Custom Question

Define the following terms and identify their role in finance, which means you must explain why this is important to the discipline. Do not forget to provide in-text citations and references.

a. Finance
b. Efficient Market
c. Primary Market
d. Secondary Market
e. Risk
f. Security
g. Stock
h. Bond
i. Capital
j. Debt
k. Yield
l. Rate of Return
m. Return on Investment
n. Cash Flow

Purchase this Solution
Solution Summary

The solution defines terms in the financial field. The terms role in finance is examined.

Solution Preview

a. Finance pertains to the sourcing of necessary capital to finance a business activity. This concept is important as it differentiate the other activities of an organization - operations and investment activities.

b. An efficient market is "a market in which any relevant information is immediately impounded in asset prices" (CFA 2008, p. G-16). Efficient market plays an important role in the analysis and management of investments.

c. It is the market in which "newly issued securities are sold by their issuers, who receive the proceeds" (CFA 2008, p. G-38). Primary markets are important as they provide a place where institutions which needed capital and investors with extra funds can meet and do business.

d. An example of a secondary market is the New York Stock Exchange where investors, whether individual or institutional, can buy and sell financial securities particularly the stocks of publicly traded firms. This market is very important in finance as it provides liquidity for investors ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Audit: Financial Disclosure Required for Rem, Inc.

    The terms of the loan agreement would already be disclosed in the notes to the financial statements in the long term debt portion of the disclosures.

  • Elements of the Generally Accepted Auditing Standards (GAAS)

    The general standards refer more to qualitative aspects of the field of auditing and the requirements of people who work in that field.

  • Innovation in Training and Development

    Training, Development & Learning Technology Innovations for Financial Services meets limited expectation for where the field of training and development are going in future.

  • Four examples where forensic accounting may be used

    References: http://www.investopedia.com/terms/f/forensicaccounting.asp http://www.investopedia.com/terms/f/financial-forensics.asp http://www.investopedia.com/terms/c/Certified-Forensic-Financial-Analyst.asp http://www.nacva.com/CTI/CFFA_requirements.asp

  • GAAP Standards

    In lay man's terms, it makes it makes it easier to compare apples to apples. Consistency: The same accounting methods has to be used to describe similar events from period to period.

  • Mobile Commerce

    For example, m-commerce applications are available in mobile banking, buying and selling of securities, money transfer, etc. in the field of financial services.

  • What is the purpose of Accounting?

    It ensures that there is standardized output in terms of financial statements as well as prevent misuse and frauds.

  • Independent and Mainstream Journalism

    On the financial side of things, despite the arduous global economic picture, various survey and data also appear to indicate that revenue for many publishers - arguably a small majority - has gone up, especially in terms of online content and associated

  • Why are ethics so important in the field of accounting?

    Ethics in accounting field also helps to maintain the financial rules and regulations that are set by the accounting authority for the business.

View More Related Solutions