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
A dollar received today is worth more than a dollar received in the future. Conversely, a dollar receive in the futre is worth less than on received today.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Efficient market
The theoreoretical efficient market occurs when information flows freely, to allow supply and demand to react instantly to changes in the market.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Primary versus secondary market
Primary market is a part of the financial market where new security issues are initially bought and sold.
Secondary market is the financial market where previously issued securities such as stocks and bonds are bought and sold.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Risk-return tradeoff
We wont take on additional risk unless we expect to be compensated with additional return.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Agency (principal and agent problems)
Is the conflict of interest between the firms managers and its stockholders, when the firms common stockholders, the owners of the firm, are the principles in the relationship, the managers act as “agents” to these owners.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Market information and security prices and information asymmetry
Investors will react to info with either buying or selling shares of the company on the market. Supply and demand are reflected upon share prices. Info asymmetry happens when a party has better information than competing party.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Agile and lean principles
Agile and lean principles are manufacturing prosesses along with certain precedures that are seeking increased efficiency.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Return on investment
ROI can be defined by the expected gain financialy capital allocated to a project.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of Phoenix eBook Collection.
Cash flow and a source of value
This is decribed by the movement of cash through a corporation both inflow and outflow. A certain activity has resulting cash flow.
Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management (12th ed.). Retrieved from The university of
