Fin/370 Def Essay

773 WordsAug 12, 20154 Pages
Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |“The idea that money available at the present time is worth more than the |("Time Value of Money (TVM) Definition | | |same amount in the future due to its potential earning capacity” || Investopedia"). | |Efficient market |“An investment theory that states it is impossible to "beat the market" |("Efficient Market Hypothesis (EMH) | | |because stock market efficiency causes existing share prices to always |Definition | Investopedia"). | | |incorporate and reflect all relevant information” | | |Primary versus |“The primary market is where securities are created. It's in this market |("A Look At Primary And Secondary | |secondary market |that firms sell (float) new stocks and bonds to the public for the first |Markets") . | | |time” | | | |“…in the secondary market, investors trade previously issued securities | | | |without the issuing companies' involvement” | | |Risk-return tradeoff |“The principle that potential return rises with an increase in risk. Low |”( Risk-Return Tradeoff Definition | | | |levels of uncertainty

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