Finance Definitions

Time value of money Money has a time value, a dollar received today is worth more than a dollar received in the future, Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Efficient market Is a market in which prices quickly respond to the announcement of new information. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Primary versus secondary market A primary market is in which new securities are bought for the first time.

Secondary market is whee all the subsequent trading of previously issued securities. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Risk-return tradeoff No additional risks are taken unless the expected compensation has additional return. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Agency (principal and agent problems) Principle 5: Individuals Respond to Incentives.The conflict of interest between the firms managers and its stockholders. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Market information and security prices and information asymmetry Market information help investor purchases and sales of a security drive its price to reflect its risk.

Asymmetric Information is a situation in which one party has more information compared to another. Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial Management. Principles and Applications (12th ed.). Retrieved from The University of Phoenix eBook Collection database..

Asymmetric Information. (2015). Retrieved from http://www.investopedia.com/terms/a/asymmetricinformation.asp

Agile and lean principles Agile principle is an iterative process in wich focuses on continuous montitoring and improvement of deliverables that are used in project management. It allows more flexibility in error detection and overview of task efficiency.

Lean principles focuses on continuous improvement of processes through waste elimination. How Agile Project Management Works. (2015). Retrieved from http://www.investopedia.com/articles/investing/040715/how-agile-project-management-works.asp