FIN 370

Week 1 Individual Assignment

Resource: Financial management: Principles and applications

Define the following terms and identify their roles in finance:

• Finance - The "science of funds management." Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. Finance also deals with how money is spent and budgeted.

Efficient market - A market in which the values of all assets and securities at any point in time reflect all available public information. In order to understand what causes price changes in stock prices and how securities are valued or priced in the financial markets, it is necessary to have an understanding of efficient markets.

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• Primary market -...