PRINCIPLES OF FINANCE: MILESTONE 4
SUBMISSION
◍Finance. Answer: The study of funds management and asset allocation
over time.
◍ Assets. Answer: Something or someone of any value. Economic
resources that represent the value of ownership that can be converted
into cash.
◍ Debtor. Answer: A person or firm that owes money. One in debt or
one who owes a debt.
◍ Shareholder. Answer: One who owns shares of a stock.
◍ Liability. Answer: An obligation, debt, or responsibility owed to
someone.
◍ Investment. Answer: A placement of capital in expectation of
deriving income or profit from its use.
◍ Capital. Answer: The means to acquire goods and services, especially
in a non-barter system.
,◍ Expected return. Answer: Considering the magnitude and likelihood
of exogenous events, the yield that an investor predicts they will earn on
average.
◍ Financing. Answer: A transaction that provides funds for a business.
◍ Equity. Answer: The residual claim or interest to investors for assets
after all liabilities are paid.
◍ Valuation. Answer: The process of estimating the market value of a
financial asset or liability.
◍ Fundamental analysis. Answer: An analysis of a business with the
goal of financial projections in terms of income statement, financial
statements and health, management and competitive advantages, and
competitors and markets.
◍ Financial statement. Answer: A formal record of all relevant financial
information of a business, person, or other entity, presented in a
structured and standardized manner to allow easy understanding.
◍ Market value. Answer: The total value of the company as traded in
the market. Calculated by multiplying the number of shares outstanding
by the price per share.
, ◍ Stakeholder. Answer: A person or organization with a legitimate
interest in a given situation, action, or enterprise.
◍ Central banks. Answer: National banks that implement monetary
policy, issue currency, and provide banking services to the government
and commercial banking systems of their respective countries. In the
US, this is the Federal Reserve.
◍ Inflation. Answer: The general increase in prices and the decline in
the purchasing power of money.
◍ Credit. Answer: A privilege of delayed payment extended to a buyer
or borrower on the seller's or lender's belief that what is given will be
repaid.
◍ Crowdfunding. Answer: Funding by many individuals pooling their
money together for a common goal, usually via the internet.
◍ Underwriter. Answer: An entity that markets newly issued securities.
◍ Ethics. Answer: The study of principles relating to right and wrong
conduct.
◍ Norms. Answer: Rules or laws that govern a group's or a society's
behaviours.
SUBMISSION
◍Finance. Answer: The study of funds management and asset allocation
over time.
◍ Assets. Answer: Something or someone of any value. Economic
resources that represent the value of ownership that can be converted
into cash.
◍ Debtor. Answer: A person or firm that owes money. One in debt or
one who owes a debt.
◍ Shareholder. Answer: One who owns shares of a stock.
◍ Liability. Answer: An obligation, debt, or responsibility owed to
someone.
◍ Investment. Answer: A placement of capital in expectation of
deriving income or profit from its use.
◍ Capital. Answer: The means to acquire goods and services, especially
in a non-barter system.
,◍ Expected return. Answer: Considering the magnitude and likelihood
of exogenous events, the yield that an investor predicts they will earn on
average.
◍ Financing. Answer: A transaction that provides funds for a business.
◍ Equity. Answer: The residual claim or interest to investors for assets
after all liabilities are paid.
◍ Valuation. Answer: The process of estimating the market value of a
financial asset or liability.
◍ Fundamental analysis. Answer: An analysis of a business with the
goal of financial projections in terms of income statement, financial
statements and health, management and competitive advantages, and
competitors and markets.
◍ Financial statement. Answer: A formal record of all relevant financial
information of a business, person, or other entity, presented in a
structured and standardized manner to allow easy understanding.
◍ Market value. Answer: The total value of the company as traded in
the market. Calculated by multiplying the number of shares outstanding
by the price per share.
, ◍ Stakeholder. Answer: A person or organization with a legitimate
interest in a given situation, action, or enterprise.
◍ Central banks. Answer: National banks that implement monetary
policy, issue currency, and provide banking services to the government
and commercial banking systems of their respective countries. In the
US, this is the Federal Reserve.
◍ Inflation. Answer: The general increase in prices and the decline in
the purchasing power of money.
◍ Credit. Answer: A privilege of delayed payment extended to a buyer
or borrower on the seller's or lender's belief that what is given will be
repaid.
◍ Crowdfunding. Answer: Funding by many individuals pooling their
money together for a common goal, usually via the internet.
◍ Underwriter. Answer: An entity that markets newly issued securities.
◍ Ethics. Answer: The study of principles relating to right and wrong
conduct.
◍ Norms. Answer: Rules or laws that govern a group's or a society's
behaviours.
