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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