Insert Title HCS/385 v4 Terminology and Stakeholders HCS/385 v4 Page 2 of 2 Terminology and Stakeholders Define the following terms using your text or other resources. Cite all resources according to...

Insert Title
HCS/385 v4
Terminology and Stakeholders
HCS/385 v4
Page 2 of 2
Terminology and Stakeholders
    Term
    Definition
    Resource Used
    Time value of money
    TVM or Time Value o Money is a fundamental concept that money today is much more than the same amount in future. Essentially, there are many concepts that comes into picture like earning capacity of the capital one has now in terms of interest. Therefore, the amount of capital can earn interest, hence the same amount money is worth much more sooner that it is received later. This concept is also called as discounted value.
    Time Value of Money (TVM) Definition. (2020). Retrieved 27 October 2020, from https://www.investopedia.com/terms/t/timevalueofmoney.asp
    Efficient market
    Efficient market can be explained as comprehension of current prices that can be reflected with all the information available. Markets that contains all the relevant information about the accurate value of the assets. Practically, if markets are efficient that market eliminates the probability of thrashing the market since all the information that is present to the trader is automatically incorporated into market price.
    Market Efficiency Defintion. (2020). Retrieved 27 October 2020, from https://www.investopedia.com/terms/m/marketefficiency.asp#:~:text=Market%20efficiency%20refers%20to%20how,incorporated%20into%20the%20market%20price.
    Primary versus secondary market
    Primary market is platform where securities are created. It is in this market organization sell their stocks as well as bonds to the public for the very first time for instance Initial Public Offering (IPO). On the other hand, secondary market is the place where these securities are traded by investors. In secondary market, trading between investors take place and products traded are shares, warrants, derivatives.
    Secondary Securities Market. (2020). Retrieved 27 October 2020, from https://www.money-zine.com/definitions/investing-dictionary/secondary-securities-market/
    Risk-return tradeoff
    The risk -return tradeoff can be explained that the potential return accelerates with rise in the risk. By the virtue of this principle, person associate reduced level of risk or uncertainty with low level of returns as well as high level uncertainty with high potential returns. As per this trade off, invested capital can produce high profits only if the investor admits higher possibility of loss
    Risk-Return Tradeoff. (2020). Retrieved 27 October 2020, from https://www.investopedia.com/terms/r/riskreturntradeoff.asp#:~:text=The%20risk%
    Agency (principal and agent problems)
    The principal-agent problem that explains the conflict between the priorities between the group as well as the representative that are authorized to act on their behalf. An agent may act in a manner that is in contradiction to the best interest of principal. This can take place in any condition where the ownership of asset, principal or delegation of control takes place over the asset. This...