Finance 2000

strong-form efficiency current market prices reflect all pertinent information, whether publicly available or privately heldeven insiders cannot earn abnormal returns
Semi-strong efficiency current market prices reflect all publicly available informationinsiders can profit on their own company’s stock
weak form efficiency all information contained in past price movements is fully reflected in current market pricesinformation about recent or past price trends is of no use when searching for abnormal returns
coupon rate The interest rate stated on a bond, note or other fixed income security, expressed as a percentage of the principal (face value). also called coupon yield
discount rate charged by the Fed for loans it makes to banks to meet temporary shortages in required reserves
income statement a statement summarizing the firm’s revenues and expenses over an accounting period, generally a quarter or a year.
balance sheet financial statement showing assets (things you own) and liabilities (things you owe on) at a specific time
annual report An Annual report is a comprehensive report on a company’s activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company’s activities and financial performance.
trend analysis The term “trend analysis” refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information
benchmarking is the process of comparing one’s business processes and performance metrics to industry bests and/or best practices from other industries
market value the price at which buyers and sellers trade the item in an open marketplace
future value The amount of cash at a specified date in the future that is equivalent in value to a specified sum today
intrinsic value The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.
present value is the value today of a future cash flow or series of cash flows.
annuity due An annuity whose payments occur at the beginning of each period.
ordinary annuity A series of fixed payments made at the end of each period over a fixed amount of time.
discounting is the process of finding the present value of a future cash flow or series of future cash flows; it is the reverse of compounding.
discount less in return
premium more money back

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