Financial Terminology

FIN 370

Finance

A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Finance deals with matters related to money and the markets.

Efficient market

Efficient market is the market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets.

Primary market

Primary market is the location where the securities are issued for the first time on exchange. In a primary market, the investor does not buy from another investor and the issue price is the same for the buyers.

Secondary market

A secondary market is a place where an investor can buy...