A Dance With Finance – Make Sure You Take The Lead!
FINANCE: Definition - A branch of economics concerned with resource allocation as well as resource management, acquisition, and investment. Simply, finance deals with matters related to money and the markets. Role - Finance is used to raise money through the issuance and sale of debt and / or equity. Institutions could also use finance techniques to create balance sheets, general ledgers, profit and loss statements, etc..to determine the health of the business. EFFICIENT MARKET: Definition - A market in which the values of securities at any instant in time fully reflect all available information, which results in market value and the intrinsic value being the same. Role - A good example of efficient markets in finance could be seen with the stock markets because information is available to all participants at the same time and the prices respond immediately to the available information. PRIMARY MARKET: Definition - Transactions in securities offered for the first time to potenti