Definition of financial terms

FIN .370

Definition of financial terms

Finance concerns the management, maintenance, and creation of economic value or wealth (Keown, Martin, Petty, & Scott, Jr., 2005, p. 4).

Efficient market is the theory that market prices reflect the knowledge and expectations of all investors (Downes & Goodman, 2010).

Primary market is the market for new issues of securities. A market is primary if the proceeds of sales go to the issuer of the securities sold. The term applies to government securities auctions, opening option, and futures contract sales (Downes & Goodman, 2010).

Secondary markets handle the exchanges and the over-the-counter markets where the sell and purchase occur after the original issuance. Secondary markets include the money-market...