List of Definitions in Financial Management Coursework

Exclusively available on Available only on IvyPanda® Made by Human No AI

Finance

Finance is defined as the management of money, credit, banking activity as well as investments and involves all commercial activity of providing funds and capital through markets created for transacting assets, liabilities and risks.

Efficient market

In finance, efficient market is the market for transacting assets such as bonds, stocks and other securities and in which the prices of these assets reflect all past publicly available information as well as inside information which is not readily available to the public.

Primary market

Primary market is a capital market which is used by new or expanding businesses to sell new securities directly to the investors. They are important avenues for transacting securities for the first time and therefore they facilitate capital formation in the economy.

Secondary market

Secondary market or aftermarket is a financial market in which investors can purchase from other initial investors securities held by them after the initial issuance. Secondary markets play a vital for facilitating efficient transfer of securities from one investor to another speculator.

Risk

In finance, risk is defined as the possibility of incurring a loss or misfortune or the potential of attaining unexpected good returns.

Security

In finance, the term security refers to all categories of negotiable instruments which are used to present financial value. This includes banknotes, debentures and bonds (which are categorized as debt securities); common stocks (also known as equity securities) and derivative contracts such as swaps and forwards.

Securities are used in business to acquire income for the purpose of investment or as collateral for securing loans.

Stock

Stock is basically business merchandise and is described in finance as capital in form of shares invested by the founders or holders in the business and which entitles the holders to an ownership interest (equity).

Bond

A bond is a type of debt security which is typically a formal contract between the issuer (debtor) and the holder (creditor), requiring the issuer to repay the holder borrowed money with interest (coupon) at specified fixed intervals.

Capital

Capital is money, property, resource (including human resource of economic value) or any form of wealth which is available to the business for production of further assets or for any other economic production.

Debt

Debt refers to an obligation to pay (or do something in kind) for the money, goods or services owed by the debtor to the creditor. Large business companies and corporations often use debt as a financial strategy and as a way of anticipating the company’s future purchasing power.

Yield

The amount of money earned by owners or holders of a security at the end of the day for the amounts committed in the investment is what is described in finance as yield.

Rate of return

Rate of return (ROR) is the ratio of the amount of money earned out of an investment relative to the initial invested amount.

Return on investment

Return on investment (ROI) is also referred as the Rate of return (ROR) and is the ratio of the amount of money earned out of an investment relative to the initial invested amount and is usually expressed as a percentage.

Cash flow

In finance, cash flow refers to the movement of money into and out of a business or the excess of cash revenues over spent (or disbursed) cash over a specified period of time.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, July 24). List of Definitions in Financial Management. https://ivypanda.com/essays/list-of-definitions-in-financial-management/

Work Cited

"List of Definitions in Financial Management." IvyPanda, 24 July 2022, ivypanda.com/essays/list-of-definitions-in-financial-management/.

References

IvyPanda. (2022) 'List of Definitions in Financial Management'. 24 July.

References

IvyPanda. 2022. "List of Definitions in Financial Management." July 24, 2022. https://ivypanda.com/essays/list-of-definitions-in-financial-management/.

1. IvyPanda. "List of Definitions in Financial Management." July 24, 2022. https://ivypanda.com/essays/list-of-definitions-in-financial-management/.


Bibliography


IvyPanda. "List of Definitions in Financial Management." July 24, 2022. https://ivypanda.com/essays/list-of-definitions-in-financial-management/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1