...* Finance The management of revenues; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking and investment. * Efficient Market A market in which the values of securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same. * Primary Market A Primary market is a market in which transaction insecurities offered for the first time to potential investors. This would be items like IPO’s or the first set of stock that is privately traded by a corporation. * Secondary Market A Secondary market is a market in which stock previously issued by the firm trades. These stocks are stocks that are sold by original shareholders to others, which make it a secondary market because the stocks are resold. * Risk The likely variability associated with expected revenue or income streams. Risk is taken by in one in the business of finance because it is no guarantee the investment will flourish. * Security A document; historically, a physical certificate but increasingly electronic, showing that one owns a portion of a publicly- traded company or is owed a portion of a debt issue. * Stock A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. This is what shareholders and corporations show to claim their parts to the company...
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...1. Primary markets: Markets that sell new issues if securities. 2. IPO: First public issue of a financial instrument by a firm. 3. Investment bank: Financial institution that arrange primary market transactions for business. 4. T bills: Short term US government obligations. 5. Money markets: Market that trade debt instruments with maturities of less than one year. 6. Capital markets: More than one year. 7. Liquidity: The ease with which an asset can be converted into cash. 8. Price risk: Asset sale price will be lower than its purchase price. 9. Nominal interest rates: Interests rates observed in financial markets. 10. Real interest rates: Interest rate on a default free security if no inflation is expected. 11. Default risk: Security issuer might miss or be late in payments. 12. Unbiased expectations: Structure of interest rates reflects the market´s expectations of future short term rates. 13. Market segmentation: Individual investors and financial institutions have specific maturity preferences. 14. Bond: Public traded debt. 15. Par value: Face value of a bond, principal. 16. Coupon rate: Interest rate of a bond. 17. Call: Issuer redeeming bond before scheduled maturity date. 18. TIPS: Treasury inflation protected securities. 19. Zero coupon bond: Bond that pays no interest. 20. Tax equivalent yield: Modification to a muni bond yield to compare to a corporate bond. 21. Yield to maturity: Total return on a bond held to maturity. 22. Debentures: Unsecured...
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...Finance- The study of how people and business evaluate investments and raise capital to fund them. * Efficient market- a market in which prices correctly reflects all relevant information. * Primary market- is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. * Secondary market- is where all subsequent trading of previously issued securities takes place. * Risk- Return on total investment, the degree of uncertainty of return on an asset. * Security- A negotiable instrument that represents a financial claim. It can take the form of ownership (stocks) or debt agreement. * Stock- Ownership of a corporation indicated by shares, which represent a piece of the corporation’s assets and earnings. * Bond- A long term 10 years or more, promissory note issued by a borrower, promising to pay the owner of the security a predetermined amount of interest each year. * Capital- Refers to the way a firm finances its assets using a combination of debt and equity. * Debt- A measures of the proportion of the firm’s assets that were financed by borrowing or debt financing. * Yield- describes the amount in cash that returns to the owners of a security. * Rate of return- the amount of revenue an investment generates over a given period of time as percentage of the amount of capital invested. Rate of return shows the amount of time it will take to recovers one’s investment. ...
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...University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |This term is basically talking about how money|Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial | | |is worth more in the present time than in the |Management (12th ed.). Retrieved from The University of Phoenix eBook | | |future. |Collection database. | |Efficient market |The efficient market term is a concept that |Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial | | |all trading opportunities are fairly priced. |Management (12th ed.). Retrieved from The University of Phoenix eBook | | |Also its the idea that the market cant be |Collection database. | | |beat, and that it is fair. | | |Primary versus secondary |Primary Market: Financial market where new |Titman,...
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...Individual Assignment: Defining Financial Terms • Resource: Financial Management: Principles and Applications • Define the following terms and identify their roles in finance: Finance- A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Basically, finance deals with matters related to money and the markets. Efficient market- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Primary market- The primary market is the market for new securities issues. In the primary market the security is purchased directly from the issuer. Secondary market- A secondary market is where investors purchase securities or assets from other investors, rather than from issuing companies. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Risk- Risk is defined as the variability of returns from an investment, the greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Security- Security is collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate...
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...University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. Term Definition Resource you used Time value of money Is the idea that money available at a present time is worth a lot more then the amount that its is in the future due to the “potential earning capacity”. The core principle of finance is provided money is able to earn interest and any money received sooner is worth more. Investopedia - Time Value of Money - TVM. (2014). Retrieved from http://www.investopedia.com/terms/t/timevalueofmoney.asp Efficient market Is a market that prices will quicky respond when there is an announcement of any kind of new information. Textbook. Primary versus secondary market Risk-return tradeoff Agency (principal and agent problems) Market information and security prices and information asymmetry Agile and lean principles Return on investment Cash flow and a source of value Project management Outsourcing and offshoring Inventory turnover Just-in-time inventory (JIT) Vender managed inventory (VMI) Forecasting and demand management University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. Term Definition Resource you used Time value of money Is the idea that money available at a present time is worth a lot more then the amount that...
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...Analyzing the seven forces and trends will be on legal and regulatory, economic, competitive analysis, structures, innovations, technologies, and leadership. To critique how well the organization adapts to change. Analyze the supply chain operations of Sprong Security Financial Services. Identify issues and/or opportunities of the company major issues, to generate a hypothesis for each issue, research questions to use for conducting analysis. Identify the circumstances surrounding each issue, classify the issue, attribute the importance of each classification, and test the accuracy of each classification. Legal is appointed, established, or authorized by law; deriving authority from law (Definitions- Legal, 2011). Regulatory is restricting according to rules or principles (Definitions - Regulatory, 2011). The laws and regulations for an accounting service and the insurance are the HIPAA Law, to have a lawyer on retainer for legal business, and keeping updates on the new tax laws for federal, state, and local. The federal trade commission is very big in any business because they regulate how an advertisement is being published to the public. The advertisement has to be honest, positive, and to be able to back up what the advertisement have to say. The HIPAA Law consists of the privacy of each client, for their information does not be leak out to anybody without their permission to do so. Economic is the study of how people choose to use resources. Sprong Security...
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...JANUARY 31, 2012 INFRASTRUCTURE SPECIAL COMMENT Default and Recovery Rates for Project Finance Bank Loans, 1983–2010 1. Introduction 1 2 4 7 12 14 15 28 37 37 39 60 60 Table of Contents: 1. INTRODUCTION 2. SUMMARY 3. OVERVIEW OF THE PROJECT FINANCE INDUSTRY 4. DATA AND METHODOLOGY 5. DISTRIBUTION OF PROJECTS 6. DISTRIBUTION OF DEFAULTS 7. DEFAULT RATE ANALYSIS 8. RECOVERY ANALYSIS 9. FURTHER ANALYSIS OF TIME TO DEFAULT AND TIME TO EMERGENCE BY INDUSTRY 10. EXPOSURE AT DEFAULT APPENDICES MOODY’S RELATED RESEARCH ACKNOWLEDGEMENT Analyst Contacts: NEW YORK 1.212.553.1653 This Special Comment (the “Study”) is an update to Moody’s initial study published in October 2010 (the “Initial Study”) examining the default and recovery performance of project finance bank loans. The Study documents Moody’s updated analysis of historical project finance bank loan default and recovery rates using updated and expanded aggregate data (the “Study Data Set”) from a consortium of leading sector lenders (together, the “Bank Group”). Moody’s wishes to acknowledge and thank each of the banks in the Bank Group for supporting and contributing to the Study. This Special Comment is an abridged version of a more comprehensive study undertaken on behalf of the Bank Group. The updated Study Data Set includes 3,533 projects which account for some 51% of all project finance transactions originated globally during a 27 year period from January 1, 1983 to December 31, 2010. The Study Data Set is...
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...Varying Perspectives on Brand Equity By Jonathan Knowles 20 ❘ MM July/August 2008 Yo u s a y t o m a y t o a n d I s a y t o m a h t o . I started business life in finance (at the Bank of England in London), and in those early days I did not give brands a second thought. My life was dominated by financial facts and figures. And for the first 10 years of my career, I believed that these metrics were essentially all that were needed to manage and run a successful business. This view survived my transition into management consulting—at least initially. But the more I worked on developing value-based business strategies for companies, the more I came to appreciate the need to expand beyond a purely financial approach. If (as management consultant Peter Drucker famously observed) the purpose of business is to create and keep a customer, then strategy necessarily involved understanding and catering to the functional and emotional needs of customers. MM July/August 2008 ❘ 21 EXECUTIVE Brand equity is a widely accepted concept—but its definition is frustratingly elusive. Here we’ll explore the different perspectives that marketing, finance, and accounting have on the topic— and how these can be reconciled. Doing so is important because of the critical role that brand briefing equity plays in the demonstration of marketing accountability. This article puts forward four arguments that marketers can use to show how brand equity is a critical measure...
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...Financial Terms and Roles University of Phoenix June 6, 2013 FIN/370 – Finance for Business Resource: Financial Management Create a list of definitions for the following terms and identify their roles in finance. See instructor policy for detailed directions. • Finance Finance is the study of how people and businesses manage and invest their money. The study of finance is the management and interpretation of information during the management of money. The study of finance helps firms address three basic questions regarding investments and cash flow. These are the following: 1.) what long-term investments the firm undertakes? 2.) How should the firm raise money to fund these investments? 3.) How can the firm best manage its cash flows as they arise in its day-to-day operations? (Titman, Keown, & Martin, Chapter 1, 2012). • Efficient market Efficient market is a market whose prices quickly respond to the announcement of new information (Titman, Keown, & Martin, Chapter 1, 2012). The stock market is an example of an efficient market. • Primary market Primary market is a part of the financial market where new security issues are initially bought and sold. In this market, firms receive money raised in the selling of their securities. They issue new securities to raise money that they can then use to help finance their businesses (Titman, Keown, & Martin, Chapter 2, 2012). * Secondary market Secondary market is the financial market...
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...Objectives of this Work 1.3 Consultations 1.4 Limitations 2.1 Definition of ‘SME’ 2.1.1 EU Definition of SME 2.1.2 World Bank Definition of SME 2.1.3 Criteria Used by Banks to Define SMEs 2.1.4 UAE Definitions of SME 2.2 Current overview of SME prevalence in Abu Dhabi/UAE 3.1 Scale of SME Finance in the UAE 3.2 Supply of Finance by Type 3.3 Sources of Finance 3.4 Stakeholder Mapping 3.5 SME Access to Finance Process 3.6 KPIs / metrics and baseline data 4.1 Key Findings – Supply Side 4.2 Key Findings – Demand Side 5.1 International Research Findings on Key Obstacles to Improving SME Access to Finance 5.2 Critical Success Factors to Improving Access to Finance for SMEs 6.1 Leading Practice SME Ecosystems: Singapore and the United Kingdom 6.2 Key Lessons Learned for the UAE 6.3 Detailed Review of Leading Practice and Regional Comparator Ecosystems 6.3.1 Singapore 6.3.2 United Kingdom 6.3.3 Jordan 6.3.4 Qatar 7.1 The core issues 7.2 n overview of the opportunities for KF and other (public and private) entities to A support SME access to finance in Abu Dhabi / UAE 7.2.1 Legal and Regulatory Transparency 7.2.2 Access to information 7.2.3 Capacity Building 7.2.4 Diversify SME Financing Mechanisms 7.3 Criteria 4 5 5 6 6 6 7 7 7 8 8 8 9 10 10 11 12 13 14 15 16 17 18 22 22 22 24 24 24 25 25 28 31 33 35 35 35 40 40 41 41 41 42 46 2. SMEs – overview of current activity (‘the demand’) 3. Finance for SMEs – overview of current activity (‘the supply’) SME...
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...THE DEFINITION OF EXPENDITURE FOR CAPITAL PURPOSES Previous Definition in Financial Procedure Rules The previous definition of capital expenditure was set out in Part IV of the Local Government and Housing Act 1989. All capital expenditure and financing must be in accordance with the provisions of the LGHA 1989 and the Local Authorities (Capital Finance) Regulations 1997. No leasing or credit arrangement as defined by the LA(CF)R 1997 shall be entered into without the approval of the Director of Finance. Any service using an asset will be charged with a cost of capital employed which represents interest foregone in owning the asset and depreciation, representing the proportion of the asset’s useful life consumed in the year in question. Current Position The LGHA has now effectively been replaced by the Local Government Act 2003 which defines capital expenditure as ‘expenditure that falls to be capitalised under proper practices’. It then goes on to define proper practices as meaning the CIPFA Recommended Practice (SORP) and any specific legislation. Specific legislation relating to capital expenditure tends to be defined in various Capital Finance Regulations. The SORP definition of capital expenditure is therefore supported by statute. However, it does not have a single definition of capital expenditure, but includes references to capitalising expenditure in various parts of the SORP. In the Fixed Assets section of the SORP expenditure that should...
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...Critical Review on ‘Revisiting the Capital Structure puzzle: UK Evidence’ Assignment for PGBS0140 Accounting & Finance for Managers Plymouth Business School Module No.:PGBS0140 Module: Accounting & Finance for Managers Group Members and Student No.: Word count: 1492 Critical Review on ‘Revisiting the Capital Structure puzzle: UK Evidence’ Al-Najjar, B. and Hussainey, K. (2011). Revisiting the capital structure puzzle: UK evidence. The Journal of Risk Finance, 12 (4), 329- 338. This essay will summarise and critically review the report of Al-Najjar and Hussainey (2011) in which the effects of potential drivers of corporate capital structure are differing for three different definitions of capital structure. The article of Al-Najjar and Hussainey is a meaning but problematic piece of research. This essay aims to critically analyse the strengths and weaknesses of authors’ arguments and mainly focuses on the introduction, theoretical background, hypothesis, empirical tests, and result. Summary Al-Najjar and Hussainey found a capital structure puzzle which is involved with different definition of capital structure and determinants of corporate capital structure. They collected a sample data of 379 non-financial firms in the UK from 1991 to 2002, and investigated firms’ corporate characteristics (including firm growth rate, risk level, firm size, asset tangibility, and firm’s profitability) and corporate governance elements (including non-executive directors...
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...Regression result for the difference between the small-value portfolio and the large-growth portfolio is depicted under CAPM Regression (3). Observe the R2 of the model is 0.005938. In finance, the R2 measures how well the CAPM predicts the actual performance of a portfolio. It is evident the CAPM model does a very poor job explaining the return difference between the two portfolios. Furthermore, by definition, if the CAPM has 100% predictive value, the regression intercept (Jensen’s alpha) should be zero. However, our regression output shows an intercept coefficient of 0.6762852 that is significant at the 99% level. As a result, the CAPM does not explain the return difference between the small-value portfolio and the large0growth portfolio. Regression result for the difference between the small-value portfolio and the large-growth portfolio is depicted under CAPM Regression (3). Observe the R2 of the model is 0.005938. In finance, the R2 measures how well the CAPM predicts the actual performance of a portfolio. It is evident the CAPM model does a very poor job explaining the return difference between the two portfolios. Furthermore, by definition, if the CAPM has 100% predictive value, the regression intercept (Jensen’s alpha) should be zero. However, our regression output shows an intercept coefficient of 0.6762852 that is significant at the 99% level. As a result, the CAPM does not explain the return difference between the small-value portfolio and the large0growth...
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...business in order to develop or expand it. Table of Contents Page Declaration i Certification ii Dedication iii Acknowledgement iv Abstract v Terminologies vi Table of Contents vii CHAPTER ONE 1.1 Background of study 1 1.2 Statement of the Problem 5 1.3 Objective of the study 5 1.4 Significance of the study 6 1.5 Scope of the study 6 1.6 Methodology 6 1.7 Limitation 7 1.8 Chapter organization 7 CHAPTER TWO 2.1 Introduction 8 2.2 Description of small scale Business 8 2.3 Definition 8 2.4 Characteristics 9 2.5 The concept of Finance 11 2.6 Definition of Finance 11 2.7 Sources of Finance 12 2.8 Internal sources of Finance 12 2.9 Problems of Finance 20 CHAPTER THREE 3.1 Introduction 26 3.2 Research Area 26 3.3 Population of...
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