b. Efficient Market
c. Primary Market
d. Secondary Market
l. Rate of Return
m. Return on Investment
n. Cash Flow
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Define the following terms and identify their role in finance:
a. Finance: This refers to the business of giving funds and capital for profit. It also means getting money for some purpose. This is an extremely important activity in finance because finance is the management of money and assets.
b. Efficient Market: This is a market in which the price of the assets indicates present and relevant information and so the assets have their actual prices. The relationship to finance is that the assertion of information efficiency is used in management of assets for their evaluation.
c. Primary Market: This is the market for new securities where the securities are sold first. The securities are purchased direct from the issuer. This is of importance in finance because the raising of long term capital through new issue of securities is an important issue in finance.
d. Secondary Market This is a market where securities are traded that have already been ...
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