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Definitons

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Submitted By dream0318
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Defining Financial Terms
1. Finance: Finance means the dealing of providing funds and capital for earnings. In addition it includes getting money for a particular reason. This is a vital act because of the fact that it involves the administration of both capital as well as holdings.

2. Efficient Market: This is a place where the price of holdings proves both current as well as relevant figures; the assets fundamentally have their actual prices. The relationship to finance is that the statement of information effectiveness is utilized in asset management with respect to their valuation.

3. Primary Market: This is the market relating to new securities where the securities are sold first. The securities are directly purchased from the issuer. This is significant in a finance capacity as a consequence of the fact that the growth of long-term capital through the issuance of securities is an essential issue in finance.

4. Secondary Market: This is a place where refuges are traded that has earlier been issued within the primary market. Usually, the securities are issued in either public offering or private. This is essential within finance because these markets provide liquidity to stake holders.

5. Risk: Prospect is there that the investment might possibly be unsuccessful to receive the projected returns, that may subsequently result in the loss of the original investment. It is fundamental within finance to assess risk so that the possibility of not receiving the expected return can be evaluated.

6. Security: Security is the assurance that is presented in order to get a loan. Property presented as assurance is called security. This is vital within finance due to the fact that the subsistence of sufficient security minimizes the lender’s danger, which successively, minimizes the borrower’s interest rate.

7. Stock: Stock is the capital

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