Finance

If you have a sample of returns (say a mutual fund’s past 10 years of returns), then there … Read More

The accounting rate of return (ARR) is a financial ratio of Average Profit to the Average Investment made … Read More

In finance we make comparison between primary and secondary capital markets. The primary market is the market for … Read More

Figure 1 shows an organizational structure of a corporation. At the top are shareholders, who are the owners of the … Read More

Given that secondary markets perform an important economic function, what are the characteristics of good markets? Among the … Read More

Present value (PV) is the current worth of future cash given an established rate of return and a … Read More

An expected value in the future is ‘discounted’ to reflect today’s value, assuming a positive return on investment … Read More

Definition The concept of time value of money (TVM) is basically defined as follows: the benefit of having a … Read More

Unlike money markets, capital markets are markets in which the securities have an original maturity greater than 1 … Read More

The market for bonds with a maturity of less than 1 year. These bonds are all zero-coupon bonds … Read More

Definition The system that transfers money between suppliers and users. It comprises financial intermediaries, markets, and instruments (securities). … Read More