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Time value of money

The idea that money available at the present period is worth more than the same quantity in the future due to the potential generating capacity. This core theory of financial holds that, provided money can earn interest, any amount of money may be worth more the sooner it is received Investopedia - Time Value pounds - TVM.  (2014).  Retrieved from Efficient marketplace

A market in which

prices quickly respond to the announcement

of recent information


Primary compared to secondary marketplace

that the primary market deals with the recently issued securities while the secondary market handles already exchanged securities. If the companies concern securities inside the primary marketplace, they collect funds straight from the buyers through the investments sales. But , in the second market the cash earned via selling securities does not visit the company. The amount of money thus received goes to the investor who sells the security. Finance Roadmaps of the World.  (2013-2014).  Retrieved coming from Risk-return tradeoff

The principle that potential come back rises with an increase in risk. Low levels of uncertainty (low-risk) are linked to low potential returns, whereas high levels of uncertainty (high-risk) are linked to high potential returns. In line with the risk-return tradeoff, invested funds can render higher income only if it is subject to the potential of being misplaced. Investopedia - Risk-Return Tradeoff.  (2014).  Retrieved from Agency (principal and agent problems)

Issues of interest and moral danger issues that arise when a main hires an agent to perform certain duties which might be in the best interest in the principal but may be high priced, or not in the best interests of the agent. The principal-agent problem builds up when a principal creates a setting in which an agent has bonuses to align the interests with those of the key, typically through incentives. Rules of sciene create bonuses for the agent to act as the key wants as the principal looks information asymmetry and risk with regards to whether the agent offers effectively completed a contract. Investopedia - Principal-Agent Problem.  (2014).  Retrieved by Industry information and security rates and details asymmetry information asymmetry deals with all the study of choices in deals where one party has more orbetter information than the other. This creates a great imbalance of power in transactions which can sometimes trigger the orders to go awry, a kind of market failure in the worst circumstance. Examples of this problem areadverse selection, moral risk, and info monopoly Wikipedia - Data asymmetry.  (2014).  Retrieved coming from Souple and trim principles


A performance measure utilized to evaluate the productivity of an expense or to evaluate the performance of a number of different investments. To calculate RETURN ON INVESTMENT, the benefit (return) of an investment is divided by the expense of the expenditure; the result is portrayed as a percentage or a ratio. Investopedia - Return on Investment.  (2014).  Retrieved from Cash flow and a source of benefit

Project administration

The planning and organization of the organization's assets in order to move a specific activity, event or perhaps duty toward completion. Job management typically involves a one-time project rather than a continuing activity, and resources maintained include both equally human and financial capital. Investopedia -- Product...

Money Market Composition