...Financial Management: Principles and Applications FIN/370 Aug 01, 2011 What is the capital market? How is the primary market different from the Secondary market? In your opinion, are these markets efficient? Why? The capital market provides investors the data showing the rates on return of investments (ROR) compiled from company portfolios. The capital market is fast paced and typically is the environment where the selling of stock is sold at good prices. For the active investor, the capital market is the shortcut icon if you will, for buying and selling of stock. The primary market is a market by which for the first time, a company offers stock to potential investors. This is the one and only time the company receives cash for its sell of stock. The secondary market is the subsequent market for the trading of stock to the public. It is my opinion that these markets are efficient because they define when a company’s stock is offered for the first time. These markets also provide an environment to predict healthy investing and liquidity of companies. With the assistance of financial managers, investors can review liquidity of companies based on sound information. Also, investors can purchase stock at prices they are comfortable with and contribute to a company sustaining a long business life. What are three primary roles of the U.S. Securities and Exchange Commission (SEC)? How does the Sarbanes-Oxley...
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...Individual Paper: Workshop 1 – Discussion Questions “DQ” University of Phoenix – FIN/370 Finance for Business Week 1 100% Workshop 1 – Discussion Questions This paper will explore the discussion questions for the first of five workshops of Finance for Business. The three topics include: 1) The capital market, how the primary market differs from the secondary market, and in the student’s opinion are these markets efficient, and why. 2) The three primary roles of the U.S. Securities and Exchange Commission, how the Sarbanes-Oxley Act of 2002 augments the SEC’s role in managing financial governance, and if the writer thinks the passage of this act had the outcome of businesses becoming more ethical. Examples will be used to support this thinking.3) Ratios which measure a corporation’s liquidity, some problems associated with using these ratios, and how the DuPont analysis would overcome these problems. The DQ’s will be stated, and then the Discussion Answers will be explored below. DQ 1 – The Capital Market What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient? Why? Discussion Answer 1 The capital market is “Any market in which securities are traded. Capital markets include the stock and bond markets.” (Farlex Financial Dictionary 2009) “Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market...
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...Initial Public Offerings Name: FIN 370/Finance for Business Date: Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe the initial public offering for the global firm, Facebook, Inc. We will describe the role of the investment banker and underwriter, the role of an originating house and a syndicate, explain the pricing of the issue, discuss some of the risks involved in the public offering and how the securities laws deal with them, and discuss any foreign exchange risks the company can face with ideas about how to mitigate them. The first thing Facebook needed to do to launch their IPO was to hire an investment banker and an underwriter. Facebook hired thirty-three investments banks who acted as brokers to bring together individuals with funds to invest in Facebook. The underwriters in those investment banks together with Facebook agreed on a certain amount to raise on the IPO. Their underwriters provided several services, but the main role is basically to take responsibility of selling those shares to investors. If they fail to sell the shares, they still owe the agreed amount to Facebook. The investment...
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...Ethics and Compliance As a team we plan to not only show the ways that Wal-Mart utilizes the various means of financial control; but how these processes are brought into the organization and how they affect the day-to-day operations of the organization. We will give detailed components of Wal-Mart’s financial structure a thorough going over to show how the organization benefits or does not benefit from government regulations as well as good and/or bad ethical practices. Access the role of ethics and compliance in the Wal-Mart’s financial environment When Sam Walton founded Wal-Mart he inspired, created, and embraced a corporate culture. The Wal-Mart culture has grown during the last 50 years, but the core principles and values that the culture was founded upon have remained strong. At the core of Wal-Mart’s culture are the three basic beliefs; respect for the individual, service to our customers, and striving for excellence. These three core beliefs created an environment that fosters high levels of integrity, ethics, and compliance. Wal-Mart and the employees often set the standard for other businesses through their efforts in these fields. These high standards are applied to all aspects of the business from financials down to the daily processes within the stores. Wal-Mart complies with all Security and Exchange Commission (SEC) requirements and publishes several financial reports throughout the fiscal year. The average consumer or investor can view these reports...
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...Intel Processor Transistor Count Processor Model Year Transistor Count 4004 1971 2300 8080 1974 6000 8086 1978 29000 80286 1982 134000 386 DX Processor 1985 275000 386 SL Processor 1990 855000 Pentium Pro Processor 1995 5.5 million Pentium 3 Xeon Processor 2000 28 million Celeron M Processor 383-333 2004 140 Million Core i7 940 2008 731 Million Quad core itanium Tukwila 2010 2 billion Core I7-3930K 2011 2.27 billion The first processor that contained two billion transistors is the Intel Quad core Itanium Tukwila processing chip. The chip was first announced in 2008 but was delayed. In February 2010 the processor was released to the public. Looking at the growth of transistors and using Dr Gordan Moore’s law, which states that “every 18 to 24 months the growth the processing power will double” has over all remained true with some exceptions. From my sources the transistor count roughly stayed the same from 1974 to 1976 as well as from 1985 to 1988. Looking at the rate of transistor growth, for me, besides some periods of slow development namely from 1993 to 1998, as a whole it seems surprisingly fast as the years have passed. To use some examples in 1997 Intel released the 8088 chip which contained 29000 transistors, 1 year later they released the 80286 chip that has 134000 transistors, that’s quadruple the amount of transistors in 1 year. Another example is from April 2007 to march 2008 the count went from 167million...
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...FIN 370 Week 1 Individual Assignment Defining Financial Terms Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/fin-370-week-1-individual-assignment-defining-financial-terms/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Finance System including circulation for money, grant of credit, investment opportunities, and banking faculties Without finance, there would be no resource allocations for operating or functional expenditures. Efficient market Efficient market, information is simultaneously available with corresponding funds example – stock market To make intellectual and well-intended fiscal decisions, information pertaining to funds must be readily accessible and available to provide insight and information for clients/investors/brokers. Primary market A market where the security is purchased directly from the issuer by the investor The primary market allows companies to offer bonds and stock to the public for the first time. It is closely related to the secondary market dependent upon one another to be most effective. Secondary market The transactions of stock from investors and dealers without the involvement of the company This market allows for the trading and selling of shares in stock. Without this market, the stock market would not exist...
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...IN 370 Week 1 Individual Assignment | Define the following terms and identify their role in finance: | | a. | Finance:An area in the field of economics that involves the distribution of an organization’s resources including investment, acquirement of monies and the management of said monies. Finance can also be defined as the way an organization raises money through the sale of stock or equity in the organization.The role of finance is to help organizations obtain profits through the sales of stocks or shares in the organization to outside investors. | | b. | Efficient Market:The indication that the worth or price of stocks or alternative investments in an organization are precisely displayed and are an accurate account of the value of the investment. In an efficient market the organization, as well as the investors, are allowed access to all financial information pertaining to the organization so that there are no inconsistencies in markets. | | c. | Primary Market:The market for the issuance of new securities or stocks. In the primary market stocks or securities are purchased by the investor directly from the issuer of the stocks or securities rather than through a second or third party. | | d. | Secondary Market:The market in which investors acquire securities or stocks from other investors instead of the initial issuer of the stocks or securities. The secondary market is also known as the aftermarket. | | e. | Risk:The measurable prospect of the loss investors...
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...Financial Definitions Michelle Burrows FIN/370 July 8, 2013 Frank Roberts Financial Definitions 1. Finance: Finance is the study of how people and businesses evaluate investments and raise capital to fund them. 2. Efficient market: A market in which all the available information is fully incorporated into securities prices and the returns investors will earn on their investments cannot be predicted. Efficient markets role in finance is how the flow goods and reduce the inefficiencies of information for the entire market as a whole. 3. Primary market: is market in which new, as opposed to previously issued, securities are bought and sold for the first time. Primary market role in finance is the market of newly issued financial assets 4. Secondary market: is where all subsequent trading of previously issued securities take place. Secondary markets role in finance has to do with long-term growth and investment. 5. Risk: The chance that an investment actual return will be different than expected. The role of risk would be the basis for evaluating any kind of investment. 6. Security: negotiable instrument that represents a financial claim that has value.. 7. Stock: a security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. Stocks both capital and simple serves as a financial security to creditors 8. Bond: debt investment in which an investor loans money to an entity that borrows...
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...Financial Terms Mark Wooldridge FIN 370 January 23, 2013 Dr. David Di Sciascio • Finance: The study of how people and businesses evaluate investments and raise capital to fund them. Within in all aspects of business such as management, marketing and production these areas of a company need to understand the aspects that finance has on their areas. • Efficient market: the indication that the worth or price of stocks or alternative investment in an organization are precisely displayed and are accurate account of the value of the investment. • Primary market: A market that is new looking to obtain funds and securities to fund the new company. • Secondary market: A market where securities and funds have already been setup. In this market the securities are being transferred from one investor to another. • Risk: measurable prospect of the loss that investors can take when purchasing securities. • Security: is a negotiable instrument that represents a financial claim. The securities can take the form of a stock, a bond or a debt agreement. • Stock: Where a publically traded company that sells equity within their organization to the public. In modest terms means that the stockholder is actually a partial owner of the company. • Bond: is in term like a long term loan issued by companies to investors where over time the company pays a fixed interest rate to the holder over the life time of the bond that was issued. • Capital: In the aspect of Finance represents the money that a company...
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...Financial Terms and Roles Alvaro Garcia Jr. FIN/370 August 19, 2013 Dr. Rachel Ang Finance – Individuals and businesses evaluate investments and raise capital to fund them. Understanding and having knowledge of finance will benefit both personal and professional life. Efficient market – Investors respond to new information buying and selling their investments the speed with which investors act and the way that prices respond to the information determine the efficiency of the market. Primary market – is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. The key feature of the primary market is that the firms selling securities actually receive the money raised. Secondary market – is where all subsequent trading of previously issued securities takes place. The principal benefit of the secondary market for the shareholders of firms that sell their securities to the public, you could easily sell those shares in the secondary market if you decided you no longer wanted to hold them. Risk – Do not take additional risk unless expected to be compensated with additional return. For example, offering investors a higher expected rate of return on the riskier investments. Security – Security markets provide a link between the corporation and investors. The securities markets are another component of the financial marketplace. Stock – Stock prices can react to information, good decisions will result in higher stock prices...
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...Financial Terms and Roles Name FIN/370 Date Instructor Financial Terms and Roles 1. Finance: Finance is basically the source used to obtain currency. For example, if one wanted to buy a house and they borrowed from the bank, the bank is the form of finance and the cash is the currency. Its role in finance provides the source of where one received money to make purchases. 2. Efficient Market: This is a term to hypothesize that the prices current in the market are honest/fair. These prices are to show all information related to its market. Its role in finance is to keep markets running smoothly. 3. Primary Market: A primary market is the location where securities are initially given. Securities can be issued in two forms, debt or equity based. Companies by any group that wants to create or raise finance can give out these two forms. 4. Secondary Market: Unlike primary markets, a secondary market is another investor rather than a company. So, it is an investor that sells securities to another investor and these can be more or less expensive than primary markets. 5. Risk: Risk is basically the uncertainty of the outcome of any transaction or investment. Its role in finance occurs in every transaction. 6. Security: Securities are the stocks that condone ownership or a bond that condones an agreement of debt. Types of securities include bonds, notes, common stocks, warrant or any type of financial assets. 7. Stock: Stock is the ownership...
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...Financial Terms FIN/370 Moya Staten 11/09/2013 * Finance * Finance is the analysis of company movements that starts at launch and operation by organization of monetary equipment by many accounts and markets to exchange liabilities, assets and risks. Its purpose is to formulate methods and procedure to establish and regulate funds. * * Efficient market A market whose prices quickly respond to the announcement of new information. * * Primary market Primary market is a part of the financial market where new security issues are initially bought and sold. * Secondary market The financial market where previously issued securities such as stocks and bonds are bought and sold. * Risk * The measurable prospect of the damage investors can take when purchasing securities or stocks when they do not result in the expected returns. There are some(prenominal) examples of financial risk including economic risk, inflation risk, market risk, and money risk. Risk is completely different when compared to returns and considerably influences financial managing for every return is imminent. * * Security A negotiable instrument that represents a financial claim that has value. Securities are broadly classified as debt (bonds) and equity securities (shares of common stock). * * Stock An instrument that signifies an ownership position in a corporation. * Bond *...
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...Terms and Roles FIN\370 Jeff D. Garcia Finance - the management of revenues, esp. those affecting the public, as in the fields of banking and investment * Efficient market - Market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets. * Primary market - Market in which buyers and sellers negotiate and transact business directly, without any intermediary such as resellers. * Secondary market - Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. * Risk - Finance: The probability that an actual return on an investment will be lower than the expected return. Financial risk is divided into the following categories: Basic risk, Capital risk, Country risk, Default risk, Delivery risk, Economic risk, Exchange rate risk, Interest rate risk, Liquidity risk, Operations risk, Payment system risk, Political risk, Refinancing risk, Reinvestment risk, Settlement risk, Sovereign risk, and Underwriting risk. * Security - Finance: A financing or investment...
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...Financial Terms and Roles Name FIN/370 Date Instructor Finance- The science of funds management; the way folks and businesses examine opportunities and raise growth capital to finance them. Efficient Market- A market where assets and securities match the information that can be obtained. In a nutshell, this market suggests that all buying and selling options tend to be relatively priced. Primary Market- Where new securities are traded. The principal marketplace offers the route at which to trade the new and only newly issued securities. Secondary Market- Where previously issued stocks and bonds are traded. Risk- The particular uncertainness an anticipated return may not be attained. It’s the possibility a picked action or exercise (such as the selection of inactivity) will result in a reduction (the result nobody ever wants). Danger takes on a large function financially; nearly every financial deal bears a few level of chance. Security- A proper affirmation that solidifies something valuable and relevant to finance and investment; the holder can get interests or dividends. Securities can be bonds or shares of common stock. Stock- An instrument that signifies what can be owned in an organization; typically a valuable piece of such organization. If looking through the eyes of the company, it is the funds elevated from the firm through the issue of shares empowering slots for. Bond- A debt (usually 10 years plus), put in place by the person that owes...
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...Week One Assignment Fin 370 November 10, 2013 Finance- Finance is the branch of economics that is concerned with resource allocation as well as resource management, acquisition and investment. Finance deals relatively with matters related to money and the markets. Efficient Market- The efficient market is a market where information is available to all participants at the same time and prices respond to available information immediately. The best example of a efficient market is the stock market. Primary Market- The primary market is a market where all buyers and seller can negotiate and transact business directly. Newly issued securities are offered to the public. Secondary Market-The Secondary market is a financial market where securities and financial instruments are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system. Risk – Risk is the probability of negative outcomes that can occur when investing. Security- A security represents debt (Bonds) or equity (Stocks).Securities can be sold to investors that want to make a return on the purchase price. There are various levels of risk associated with securities. Stock – Stocks illustrate the ownership within a company, which are equity securities. A Board of Directors determines shares that are authorized within public companies. Shares are brought...
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