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Financial Management: Define terms and their roles in finance

Resource: Financial Management

Define each term below and identify their roles in finance.

? Finance
? Efficient market
? Primary market
? Secondary market
? Risk
? Security
? Stock
? Bond
? Capital
? Debt
? Yield
? Rate of return
? Return on investment
? Cash flow

Format your paper consistent with APA guidelines, including page headers, title page, in text citations, and references page. Bullets are acceptable with this first assignment!

Solution Preview

? Very broad topic that it defies a single definition
? Topic taught in universities which include: 1) financial management, 2) capital markets, and 3) investments (Brigham & Houston, 2012, p. 5)
? Effectively navigating the world of finance means that a student must gain the necessary right knowledge, skills and tools.

Efficient market
? The characteristic of a market wherein the prices are closed to the intrinsic values of the assets
? When someone buys and sells something in a market they are rest assured that they are getting the fair prices.

Primary market
? Two general types of capital markets: 1) primary, and 2) secondary
? Deals with the issuance of new securities or initial ...

Solution Summary

The terms and their roles in finance are defined for financial management.