Finance Home Work Week 1

Topics: Stock market, Stock exchange, Investment Pages: 3 (906 words) Published: September 16, 2013
FIN 612 Managerial Finance
Week One Assignment

Your assignment for this week is to complete the following questions and problems from Chapter 1. Please submit your complete assignment in the course room by the due date.

Chapter 1 Questions

(1-1) Define each of the following terms:

a. Limited partnership-a partnership in which limited partners’ liabilities, investment returns, and control are limited; general partners have unlimited liability. Limited liability partnership- (LLP) combines the limited liability advantage of a coporation with the tax advantages of a partnership. b. Stockholder wealth maximization- The decision making process of ensuring that the company is profitable and is making healthy long term decision that will increase and protect the wealth of its stockholders. c. Money market (financial market for securities that will mature within a year or less); capital market (financial market for securities that have a long term maturity, this also includes corporate stocks); primary market (market in which securities are sold for the first time ie:IPO’s); secondary market (the market in which securities are resold or traded between the public after and IPO) e. Private markets (market in which transactions occur directly between two parties, such as a band and a borrower); public markets (Market in which transactions occur on the large basis and are usually under contract by a third party acting as an intermediary.) g. Mutual fund (a collective effort done by a corporation when collected funds are used by the company and invested into stocks and other securities, and dividends and others returns are split between the investors of the mutual fund) ; money market fund- (a mutual fund that invests in short term investments offering check writing privileges because of its high liquidity, ie: investment checking) h. Physical location exchanges- brick and mortar locations where exchanges take place like the NYSE ;...
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