[FIN 301] - Midterm Exam Guide - Ultimate 41 pages long Study Guide!
Document Summary
Chapter 1 introduction basic principles of finance: an introductory text. The stock market provides a daily barometer on the health of the financial world. The areas of finance that are important in today"s business world are corporate finance, capital markets and institutions, valuing future cash flows, and investments and valuation. The three analytical pillars of finance: the time value of money, the valuation of assets, the assessment and management of risk. Finance involves the management of money: includes how money should be invested and how money should be raised for investment. Once you estimate the amount, timing, and risk of the cash flows associated with an investment, you use financial techniques to determine the true value of the project, investment or stock. Capital markets are the financial markets where issuers and investors buy and sell debt and equity securities. Debt represents an obligation to repay borrowed moneys.
