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    Business Finance - Serrano

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    Aina Serrano
    The document defines 10 key finance terms: 1) financial statements show a company's financial status, 2) accounting principles standardize financial reporting, 3) economic theory analyzes relationships in the economy, 4) financial management plans and controls financial resources, 5) the capital market trades securities, 6) financial investments are made to earn money, 7) portfolio analysis reviews investment risk and return, 8) market analysis assesses market size and nature, 9) behavioral finance studies psychology's effects on investing, and 10) investing decisions allocate funds to earn the highest return.

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    Business Finance - Serrano

    Uploaded by

    Aina Serrano
    5 views2 pages
    The document defines 10 key finance terms: 1) financial statements show a company's financial status, 2) accounting principles standardize financial reporting, 3) economic theory analyzes relationships in the economy, 4) financial management plans and controls financial resources, 5) the capital market trades securities, 6) financial investments are made to earn money, 7) portfolio analysis reviews investment risk and return, 8) market analysis assesses market size and nature, 9) behavioral finance studies psychology's effects on investing, and 10) investing decisions allocate funds to earn the highest return.

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    The document defines 10 key finance terms: 1) financial statements show a company's financial status, 2) accounting principles standardize financial reporting, 3) economic theory analyzes relationships in the economy, 4) financial management plans and controls financial resources, 5) the capital market trades securities, 6) financial investments are made to earn money, 7) portfolio analysis reviews investment risk and return, 8) market analysis assesses market size and nature, 9) behavioral finance studies psychology's effects on investing, and 10) investing decisions allocate funds to earn the highest return.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    5 views2 pages

    Business Finance - Serrano

    Uploaded by

    Aina Serrano
    The document defines 10 key finance terms: 1) financial statements show a company's financial status, 2) accounting principles standardize financial reporting, 3) economic theory analyzes relationships in the economy, 4) financial management plans and controls financial resources, 5) the capital market trades securities, 6) financial investments are made to earn money, 7) portfolio analysis reviews investment risk and return, 8) market analysis assesses market size and nature, 9) behavioral finance studies psychology's effects on investing, and 10) investing decisions allocate funds to earn the highest return.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Serrano, Aina Marie C.

    ABM1201
    Business Finance

    Check a finance dictionary or surf the internet for the technical meanings of the finance
    terms or jargons.

    1. financial statements
    - a set of documents that show your company's financial status at a specific
    point in time. They include key data on what your company owns and
    owes and how much money it has made and spent.

    2. accounting principles
    - are the rules and guidelines that companies and other bodies must follow
    when reporting financial data. These rules make it easier to examine
    financial data by standardizing the terms and methods that accountants
    must use.

    3. economic theory
    - The study of relationships in the economy. Its purpose is to analyze and
    explain the behavior of the various economic elements.

    4. financial management
    - means planning, organizing, directing, and controlling the financial
    activities such as procurement and utilization of funds of the enterprise. It
    means applying general management principles to the financial resources
    of the enterprise.

    5. capital market
    - is a place where buyers and sellers indulge in trade (buying/selling) of
    financial securities like bonds, stocks, etc. The trading is undertaken by
    participants such as individuals and institutions. The capital market trades
    mostly in long-term securities.

    6. financial investment
    - is a financial product like a cryptocurrency or a stock that is bought with
    the goal of making money. Each investment has specific risks, advantages
    and disadvantages that will determine how and when investors buy or sell
    them.
    7. portfolio analysis
    - is the process of reviewing or assessing the elements of the entire
    portfolio of securities or products in a business. The review is done for
    careful analysis of risk and return.
    8. market analysis
    - is a complete assessment of the size and nature of a given market or
    industry. It takes into account both quantitative factors, such as the
    volume and value of the market, and qualitative factors, such as the
    competition and regulation of the market.

    9. behavioral finance
    - is the study of the effects of psychology on investors and financial
    markets. It focuses on explaining why investors often appear to lack self-
    control, act against their own best interest, and make decisions based on
    personal biases instead of facts.

    10. investing decision


    - It relates to how the funds of a firm are to be invested into different assets
    so that the firm is able to earn the highest possible return for the investors.
    An investment decision can be long-term, also known as capital budgeting
    where the funds are committed into long-term basis.

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