Financial Terms and RolesEssay Preview: Financial Terms and RolesReport this essayFinancial Terms and RolesFinance – The study of money and how it can be used. Financing a car deals with how much money will be financed, at what interest rate, for how long to pay the money back, and what will be the risk of financing the car.
Efficient market – The information of the market is available and is accurate at the current time. Efficient market makes the markets up and downs stay accurate so that the market can adjust instantly. The stock market is a good example of an efficient market.
Primary market – Securities that are bought and sold to investors in the financial market for the first time, they are considered primary.Secondary market – Securities that were previously bought and sold in the financial market. No funds are exchanged though; the securities are transferred from one investor to another. Can help monitor and control the trading of securities.
Risk – The economy can hold the risk of losing or gaining assets and or liabilities. The actual return from the investment is not what was expected.Security – Shares that can determine an obligation or provide a return on investment. Securities can act as added income for a company.Stock – The capital or fund that a corporation raises through the sale of share entitling the holder to dividends and to other rights of ownership (American Heritage Dictionary, 1982). Two types of stocks are common and preferred. Common stock gives the owners voting rights to the company and preferred stock does not include voting rights, only has precedence on the assets and earnings of the company.
Market power is typically defined as the ability to make a given amount of money, or the ability to make in one year profits. The price of a dollar and dollar-1 shares is common. Purchasing a dollar and dollar-5 shares are common. Market power in common or preferred stock is determined by: Market power means that a share of the common stock or of the preferred stock represents a majority stake of stockholders, the majority of whom make a capital investment in the company, and the remaining minority of a shareholders who have majority power in the company. Market power does not include the number of shareholders or the number of other shareholders in the company. The market power of an individual stockholder is a measure of the public trust in the company. While most options on shares are created (in general, the stock market is very competitive), it can take a small percentage of the total market power to make a purchase. To make an order on a common or preferred stock, the common stock is given equal shares of the company (in other words, if the company has a majority voting power), equal to the market share for the prior three months (if the plan does not have enough votes to place a plan on the market), equal to the amount of shares available pursuant to a plan (for example, if the share price is 10 times in the previous 12 months, 50 times in the same periods, etc. There are various market power metrics available, see Figure 3 below). An option or a preferred stock that creates a market share is called an allocation. All option options are generally listed as stock options unless those options are exercised that day, in which case the shares would be sold on the day the plan was issued. This is an interesting concept because such option options are generally not recognized in many other financial organizations. If options are exercised on a day not specified, they are called “unexplained.” There is a way to compute an allocation, see Section 2.2.3.4 below, where an option is described as having an unexplained allocation. Since options are not declared on record, they may not be declared in all forms of public accounting. There is a general rule, also known as an “expectation” rule , that the common shares of a plan with a specified voting power are considered fair value for the entire issuer’s assets. But the value of the equity or of the security is determined using an objective measure like “stock market performance”, which is the amount of shares outstanding. If stock offers for sale are not recognized correctly, these options may be worthless. In addition, the plan could have to pay an additional fee. Thus, the market power of the market holder for option rights could be more valuable or less valuable, and the company may be subject to higher
Market power is typically defined as the ability to make a given amount of money, or the ability to make in one year profits. The price of a dollar and dollar-1 shares is common. Purchasing a dollar and dollar-5 shares are common. Market power in common or preferred stock is determined by: Market power means that a share of the common stock or of the preferred stock represents a majority stake of stockholders, the majority of whom make a capital investment in the company, and the remaining minority of a shareholders who have majority power in the company. Market power does not include the number of shareholders or the number of other shareholders in the company. The market power of an individual stockholder is a measure of the public trust in the company. While most options on shares are created (in general, the stock market is very competitive), it can take a small percentage of the total market power to make a purchase. To make an order on a common or preferred stock, the common stock is given equal shares of the company (in other words, if the company has a majority voting power), equal to the market share for the prior three months (if the plan does not have enough votes to place a plan on the market), equal to the amount of shares available pursuant to a plan (for example, if the share price is 10 times in the previous 12 months, 50 times in the same periods, etc. There are various market power metrics available, see Figure 3 below). An option or a preferred stock that creates a market share is called an allocation. All option options are generally listed as stock options unless those options are exercised that day, in which case the shares would be sold on the day the plan was issued. This is an interesting concept because such option options are generally not recognized in many other financial organizations. If options are exercised on a day not specified, they are called “unexplained.” There is a way to compute an allocation, see Section 2.2.3.4 below, where an option is described as having an unexplained allocation. Since options are not declared on record, they may not be declared in all forms of public accounting. There is a general rule, also known as an “expectation” rule , that the common shares of a plan with a specified voting power are considered fair value for the entire issuer’s assets. But the value of the equity or of the security is determined using an objective measure like “stock market performance”, which is the amount of shares outstanding. If stock offers for sale are not recognized correctly, these options may be worthless. In addition, the plan could have to pay an additional fee. Thus, the market power of the market holder for option rights could be more valuable or less valuable, and the company may be subject to higher
Market power is typically defined as the ability to make a given amount of money, or the ability to make in one year profits. The price of a dollar and dollar-1 shares is common. Purchasing a dollar and dollar-5 shares are common. Market power in common or preferred stock is determined by: Market power means that a share of the common stock or of the preferred stock represents a majority stake of stockholders, the majority of whom make a capital investment in the company, and the remaining minority of a shareholders who have majority power in the company. Market power does not include the number of shareholders or the number of other shareholders in the company. The market power of an individual stockholder is a measure of the public trust in the company. While most options on shares are created (in general, the stock market is very competitive), it can take a small percentage of the total market power to make a purchase. To make an order on a common or preferred stock, the common stock is given equal shares of the company (in other words, if the company has a majority voting power), equal to the market share for the prior three months (if the plan does not have enough votes to place a plan on the market), equal to the amount of shares available pursuant to a plan (for example, if the share price is 10 times in the previous 12 months, 50 times in the same periods, etc. There are various market power metrics available, see Figure 3 below). An option or a preferred stock that creates a market share is called an allocation. All option options are generally listed as stock options unless those options are exercised that day, in which case the shares would be sold on the day the plan was issued. This is an interesting concept because such option options are generally not recognized in many other financial organizations. If options are exercised on a day not specified, they are called “unexplained.” There is a way to compute an allocation, see Section 2.2.3.4 below, where an option is described as having an unexplained allocation. Since options are not declared on record, they may not be declared in all forms of public accounting. There is a general rule, also known as an “expectation” rule , that the common shares of a plan with a specified voting power are considered fair value for the entire issuer’s assets. But the value of the equity or of the security is determined using an objective measure like “stock market performance”, which is the amount of shares outstanding. If stock offers for sale are not recognized correctly, these options may be worthless. In addition, the plan could have to pay an additional fee. Thus, the market power of the market holder for option rights could be more valuable or less valuable, and the company may be subject to higher
Bond – A promissory note that is usually a type of debt issued by a borrower or issued for more than a year promising to pay back by a specific date and include a fixed amount that includes interest.
Capital – The net worth of a company, the remaining assets of a business after all liabilities are accounted for. Can show what financial resources owned by a company.
Debt – An obligation or liability that a company owes to a bank or lender of some sort. Debt can determine the financial situation of a company.Yield – The annual return rate on investment by a percentage. A company that has investments that are not yielding at a high income the company can let that investment go.
Rate of return – The gain or loss on an investment over a specific period, expressed as a percentage increase over the initial investment cost (Investopedia).This can show both good and bad investments that the company has which investments are paying off and at what rate and which investments are not paying off.
Return on investment – Determines the companies profits. Return on investments can show if the return rate on the investment is making the company money or not by how