Tuesday 4 November 2014

FIN 370 Week 1 Complete

FIN 370 Week 1 Complete

DQ 1. What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient?  Why or why not?

DQ 2. What are three primary roles of the Securities and Exchange Commission (SEC)? How does Sarbanes-Oxley Act of 2002 augment the SEC’s role in managing financial governance?  Do you think businesses became more ethical after Sarbanes-Oxley was passed?  Provide examples to support your answer.

DQ 3. What ratios measure a corporation’s liquidity? What are some problems associated with using such rations?  How would the DuPont analysis overcome these problems?

Resource: Financial Management
Create a list of definitions for the following terms and identify their roles in finance.
• Finance
• Efficient market
• Primary market
• Secondary market
• Risk
• Security
• Stock
• Bond
• Capital
• Debt
• Yield
• Rate of return
• Return on investment
• Cash flow
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