Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with PAP guidelines. Term Definition Resource you used Time value of money A dollar received today is more valuable than a dollar received one year from now.
A dollar received today can gain interest Financial management Chapter 1 Efficient market The prices of financial claims traded in the public financial markets respond rapidly to the release of new information.Business dictionary Primary versus secondary market Primary markets are tailored to a company’s particular needs and is conducted either by you or by a company that you pay to conduct the research for you. Secondary markets are based on information from studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations.Risk-return tradeoff From the reading: It’s where someone will take an additional risk and expected to be compensated in the end. Financial management Chapter 1 Agency (principal and agent problems) A firm’s common stockholders, the owners of the firm, are the principals in he relationship, and the managers act as “agents” to these owners.If the managers have little or no ownership in the firm, they have less incentive to work energetically for the company s shareholders and may instead choose to enrich themselves with perks and other financial benefits.
Market information and security prices and information asymmetry Agile and lean principle.