FIN3702 Assignment 1 Semester 1 2023 {211581}

Finance - -The business function of effectively obtaining and using funds -Efficient Market - -The prices of financial instruments reflect all available information; the market is perfectly efficient, always at equilibrium and asset prices cannot deviate from their fundamental values. -Primary Market - -A market where newly issued securities are sold for the first time. The purpose of which is to raise money to finance business. -Secondary Market - -The market where securities are transferred from one investor to another. The primary purpose for this market is liquidity. -Risk - -Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit. -Security - -1. An investment instrument, such as a stock certificate; evidence of an obligation to pay money, or of a right to participate in earnings or distribution of corporate, trust, or other property. 2. Something provided as collateral for a loan. -Stock - -An equity (ownership) interest in a corporation, measured in units of shares. -Bond - -A debt security with a maturity period of over 10 years, after which can be sold in the capital market.