Financial Terms and Roles Paper

1242 Words Mar 9th, 2012 5 Pages
Financial Terms and Roles Paper
Prof. Brenden Sager
Univ. of Phoenix
December 22, 2011

Defining the following terms and identify role in finance. Finance- Finance is credit that is use for a huge purchase it is a loan from a bank when funds are needed to purchase a home, car, or business. The finance purpose allocates assets including investing and managing of resources. When the information that shareholder need to make a deal decisions is widely on hand, thoroughly analyzed, and regularly used, the finding is an efficient marketplace. Efficient Market- Advertises in which security prices return all available information and adjust right away to any fresh information. If the safekeeping markets are truly well
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A written duty that makes a individual or an institution responsible for the achievement of another. A debt asset in which an investor lends funds to an entity, firm or government that have a loan of funds for a defined period at a fixed interest rate. Bonds are used by firms municipalities, states, and United States and foreign government to finance a diversity of projects and activities, bonds are commonly referred to as fixed income.
Capital- Capital is funds that are used to create income or make an investment. The funds that are used to purchase a share of a mutual fund is capital that you are investing in the money. Firms raise capital from investors by selling stocks and bonds and money are use to expand, make attainment or else build the firm.
Finance assets or the financial worth the assets, such as cash. The factory, machine, and tools owned by a firm and used for process and production. Debt- A debt is a responsibility for the individual to repay the full amount that was borrowed. Debt securities, such as bonds or profit making paper, are forms of money owing that bind the issuer, such as a business, bank, or administration, to pay back the security holder. Amount outstanding are also known a liabilities. It is your obligation to repay another.

A debt agreement gives the borrowing party authorization to borrow money under the order that it is to be repaid back at a later time, most often than not with interest. Yield- Yield

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